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Apple IPhone Is Top Choice Among Smart-Phone Buyers (Update1)

By Ville Heiskanen

June 22 (Bloomberg) -- Apple Inc.'s iPhone was a top choice in a survey of people who plan to buy an advanced mobile phone in the next three months, a sign the new device may take market share from rivals.

The survey by ChangeWave Research found that 26 percent of likely buyers would choose the iPhone, a combination mobile phone and iPod that will go on sale June 29. It was tied for first place with Research In Motion Ltd.'s BlackBerry. The research firm asked 3,489 U.S. consumers if they planned to buy an advanced mobile phone, and if so, what brand they would choose.

Apple, based in Cupertino, California, is betting the iPhone's features such as a touch screen will lure customers away from the BlackBerry and Palm Inc.'s Treo. The U.S. market for so- called smart phones, which offer e-mail functions, music players and cameras, may grow 43 percent this year to almost $6 billion, according to research firm Strategy Analytics.

``It appears that the Apple iPhone will have a huge impact on the smart-phone market,'' ChangeWave said in the report. The device ``poses an enormous challenge to the entire industry.''

ChangeWave, based in Rockville, Maryland, said 7.8 percent of the consumers surveyed planned to buy an advanced phone within the next 90 days. The study was conducted in April.

In the survey, 10 percent of those planning to buy an advanced mobile phone said they would choose a Palm device, putting the company in third place. Samsung Electronics Co. was fourth with 7 percent, followed by Motorola Inc. with 5 percent and Nokia Oyj with 3 percent.

Shares of Apple fell 90 cents to $123 at 4 p.m. New York time in Nasdaq Stock Market trading. They have climbed 45 percent this year.

To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net

Last Updated: June 22, 2007 16:15 EDT

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