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The IPhone Makes Gains with Businesses

August 29, 2008

Wall Street Journal Blogs.com
By Ben Worthen

Apple in July released a software update for its iPhone that was intended to help get the popular device into businesses. A month and a half later, the plan seems to be working, according to two new surveys.

ChangeWave Research surveyed close to 2,000 technology pros and found that 17% planned to buy iPhones this quarter. That's up from 13% in May. Also, 19% of tech pros said that the July software update made them more likely to buy iPhones for their businesses. The same survey found that those planning to buy Research In Motion's BlackBerry dropped three percentage points from May to 79%. Obviously, the BlackBerry is still far and away the leader, but Apple is starting to make a dent.

Apple's dent is even more noticeable among small businesses. Intermedia, which runs Microsoft's Exchange email program for businesses with fewer than 500 employees, asked its customers what phone they were using to access email. Thirty-four percent said the iPhone, just short of the 38% that answered 'BlackBerry.'

Only 54% of the people surveyed by Intermedia have their devices paid for by work, so some of the iPhone respondents are making a personal decision, not a company-wide one. Still, of the respondents who are using a corporate-standard device, the 50% use a BlackBerry and 27%, an iPhone.

Danny Essner, director of marketing Intermedia has noticed one trend: The people who have used his company's service for a while mostly have BlackBerrys; new customers are more likely to have iPhones. That sounds like good news for Apple, but it's really a mixed bag. IPhone owners are turning to Intermedia's service because they're having difficulty using Apple's MobileMe service, which is supposed to push emails to the iPhone, but has been fraught with problems since its launch.

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