ChangeWave predicts iPhone explosion

The latest ChangeWave consumer smartphone industry survey reveals a two horse race for dominance between Research In Motion and Apple, and all at the expense of Palm.

ChangeWave surveyed 3,597 consumers across March 17-24 in order to determine their smartphone preferences and usage patterns. And while the survey showed RIM's Blackberry to be dominant in terms of market share, iPhone continues to gain converts and has many consumers already expressing the desire to buy one.

BlackBerry holds 42 percent of the current U.S. smartphone market, while Palm, with 16 percent, continues to see its market share decline. Up and coming newcomer to the market, Apple, already has 9 percent of the market - and customers like using an iPhone more than they like its competitors.

"The iPhone receives an astonishing 79 percent Very Satisfied rating among its owners," ChangeWave said, "considerably ahead of all other manufacturers in the smartphone market including second place RIM (54 percent). Palm (22 percent) once again ranks at the bottom in terms of customer satisfaction."

The research also reveals that 35 percent of respondents who plan to buy a smartphone in the coming quarter already want to purchase an iPhone. A similar survey in January revealed a 23 percent preference, meaning the iPhone is gaining momentum.

"The biggest reasons for the surge are the recent Apple announcements on the iPhone Software Development Kit and the new 2.0 Operating System," said Tobin Smith, founder of ChangeWave Research and editor of ChangeWave Investing. "One-in-10 respondents now say they're more likely to purchase an iPhone in the future because of the new smartphone software."