Will The Masses Buy The iPhone?

    June 19, 2007

The price of the iPhone and the cost of switching carriers could decrease the demand for Apple’s much hyped phone according to a study by IDC "Survey of Mobile Phone Buyers: Who Wants the iPhone?"

Will The Masses Buy The iPhone
"Will The Masses Buy The iPhone"
Will The Masses Buy The iPhone

The survey found that close to 60 percent of consumers were interested in the iPhone, but they were not likely to buy one anytime soon citing cost of the device and the cost of switching carriers.

"While the allure of owning the next ‘cool’ device will undoubtedly have early adopters – and die-hard Apple fans – queuing up to get the iPhone regardless of the price, the associated costs of ownership will persuade many others into a ‘wait and see’ position," said Shiv K. Bakhshi, Ph.D., director of mobility research at IDC.

"Despite all the hype, there is little clarity on Apple’s (and AT&T’s) service plans for the device. This lack of clarity could adversely impact consumers’ purchase decisions."

The study found that only 10 percent of respondents were willing to pay full price for the iPhone and sign a two-year contract with AT&T. The iPhone will retail for $499 and $599 depending on whether the consumer wants 4GB or 8GB of flash memory. Around 18 percent of the respondents said they would buy the iPhone if it were priced under $299.

"Apple loyalists alone can make the initial launch a ‘success’. But beyond that, it will be interesting to see the extent to which the iPhone hype, and the curiosity it has generated, translates into actual purchasing intent," noted Bakhshi.