Despite Record-Low IT Spending Plans, iPhone Gains Business Traction

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Despite Record-Low IT Spending Plans, iPhone Gains Business Traction

Corporate IT spending for Q3 and the next 90 days is experiencing a drastic, record downturn that foreshadows even tougher times ahead for the US economy, according to a survey fromChangeWave.

At the same time, the Apple iPhone is beginning to gain traction in the corporate marketplace even as Research-in-Motion (RIM) maintains a large lead in the smartphone market.

The periodic survey, which asked respondents involved with IT purchasing whether their Q3 spending was on track, found as follows:

• 30% of respondents said they’ve spent less than planned, three points worse than May results.

• 12% said they have spent more than planned.
• 29% said their company’s IT spending will decrease - or there will be no spending at all - in Q4, five points worse than the previous survey.

• 13% said spending will increase, a two-point decline from May.
• 39% said they did not think corporate IT spending would pick up until at least Q2 2009, or later.

The last survey that projected such a large IT spending pullback was in August 2001, ChangeWave said.

The two major causes for spending decreases include high energy costs and the US presidential election. More than a third (35%) of corporate respondents reported high energy costs are affecting their company’s IT spending plans for the second half of 2008, while another 25% said the US presidential election is having an impact on their company’s IT spending decisions.

Corporate Smartphone Buying

In the same survey, ChangeWave examined corporate smartphone purchasing and found that RIM, at 79%, continues to overshadow its two main competitors - Palm and Apple - in terms of planned fourth-quarter purchases, but this number is down three points from May’s record high.

Apple, however, continues to show considerable momentum in terms of corporate planned purchases, up four points to 17%.

Some 19% of respondents also reported that the release of the iPhone 3G has made their company more likely to purchase Apple products in the future. Only 1% said their companies were less likely. These responses suggest that the iPhone is creating a “halo effect” in terms of improved overall corporate purchasing intentions for Apple products

About the survey: The survey of 1,947 respondents involved with IT spending in their organization was conducted August 11-21, 2008