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Six percent plan to buy iPhone, according to market research firm

Apple’s iPhone product is one of the most talked about pieces of kit in recent memory, but according to a survey conducted by market research firm Markitecture, the majority of those who know about the iPhone have no plans on buying it.

Markitecture said that it surveyed a nationally representative sample of 1,300 people who both owned their own cell phone and were responsible for the monthly payments. 77 percent of respondents were at least slightly familiar with the iPhone, and 41 percent had a good impression of the iPhone based on everything they had seen or heard.

Interestingly, familiarity with the iPhone is positively correlated with overall impression - strength of impression increases dramatically with increased exposure – 83 percent of those very familiar with the iPhone had an excellent or very good impression of the product.

Despite the relatively strong impression overall, six percent of those who were aware of the iPhone said they were likely to buy it within the next year. Two-thirds of the same group said that there was zero chance they would purchase the product.

For some industries, six percent market share is failure, but not so for mobile phones. Markitecture says that the highly successful Motorola RAZR after its launch in 2004 achieved a six percent market share at its peak.

As for reasons for not purchasing the iPhone, the $500-600 cost was cited as the top reason. The second issue was not specific to the iPhone however, as respondents cited carrier issues and/or contracts.

Microsoft CEO Steve Ballmer already has his own forecast on Apple’s cell device, saying to USA Today, “There's no chance that the iPhone is going to get any significant market share. No chance. It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”



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confusing...
By Homerboy on 5/2/2007 1:47:05 PM , Rating: 5
the article talks about 6% of people asked would consider buying the phone. Then goes on to talking about how 6$ market share is great in the mobile phone business. These 2 "6%s" are not the same thing.




RE: confusing...
By retrospooty on 5/2/2007 2:02:28 PM , Rating: 5
ya, I agree 6% of the smartphone market is great, however Apple plans to sell 8 million of these in the 2008 fiscal year. THAT goal is absolutly rediculous with a $600 price with 2 year contract. Apple is skoking crack if they think that will fly.

If they could drop the price to $199 with contract they can sell 8 million... assuming it performs as well as Apple claims it will, and has no major bugs or high failure rate (which is a huge IF).


RE: confusing...
By MADAOO7 on 5/2/07, Rating: 0
RE: confusing...
By retrospooty on 5/2/2007 2:55:18 PM , Rating: 5
I didnt forget the ipod... this is NOT an ipod.

"And look at all the New York businessmen, big city workers, lawyers, and doctors that this appeals to. Instead of them buying a new Palm, RIM, or Blackberry, I think they'd turn to the iPhone."

These are the "bread and butter" customers of the smartphone market. They are 95% of the buyers and they will NOT flock to it because there is no keypad to quickly type emails. Watch and learn.


RE: confusing...
By Master Kenobi (blog) on 5/2/2007 4:05:50 PM , Rating: 5
Actually, the businessmen and whatnot rely on their company infrastructure to support it. If the iPhone does not natively work with Exchange and/or Lotus Domino then it is doomed.

Our company has no plans to ever buy the iPhone, it is not compatible with our email infrastructure and we will not change just for Apple.


RE: confusing...
By Nekrik on 5/2/2007 4:24:29 PM , Rating: 4
Yep, and as far as I've heard Apple isn't real excited about opening the platform up for third party developers, meaning they're not going to allow a third party app that is compatible with Exchange. This may have changed but I don't think it has.

This won't bother many of the Apple elite, they're the target market and they're used to living in such an environment.


RE: confusing...
By cheetah2k on 5/3/2007 4:33:12 AM , Rating: 3
So we should expect that the same % of Apple Mac owners will buy the iPhone? So thats about 2% of the market right?

;-p


RE: confusing...
By kelmon on 5/3/2007 9:59:45 AM , Rating: 2
True, but there is nothing to say that Apple doesn't release a 1st party Exchange compatible email client on the phone. I have no idea how well it works as an Exchange client since my company does not yet use Exchange (although it is coming, apparently) but Apple's Mail application supports Exchange so there is nothing to prevent this from working on the iPhone.

Never say never. Apple won't allow users to install 3rd party applications directly on the phone but that does not rule out development of applications that are approved and distributed by Apple.


RE: confusing...
By odiHnaD on 5/4/2007 1:47:22 PM , Rating: 1
Apple cannot release a first party exchange client, as it will have to be licensed from MS, in other words 3rd party technology.


RE: confusing...
By SiliconAddict on 5/2/2007 8:25:54 PM , Rating: 2
How many iPods did Apple sell prior to opening it up to the rest of the market? (Read: Windows) That and only a small handful of iPods have ever cost $600 or even $500 for that matter. Until:

1. Apple sells an unlocked iPhone
2. the iPhone drops into the price range of standard Smartphones.
3. Apple developed a rep for solid hardware. (Name me a absolutely new product that Apple has gone into that hasn't been bug ridden. And the AppleTV doesn't count because its basically a slimmed down PC.)

For me the deal killer is Crapular and the price. Neither of which is making me even consider giving up my WM system.


RE: confusing...
By theapparition on 5/3/2007 7:09:37 AM , Rating: 2
Completely agree.

Out of that 100million iPod's sold, very few were the 399 models. Also, many were re-purchased because the original died.

The iPhone will be a quick seller. Those who want one, will buy it the moment it comes out. Long term sales will be terrible, though. Just my prediction. Take it as you will.


RE: confusing...
By animedude on 5/3/2007 1:38:11 AM , Rating: 3
MP3 market at that time was unsaturated. The current cellphone market is saturated with competitors.


RE: confusing...
By tuteja1986 on 5/2/2007 6:16:36 PM , Rating: 1
Maybe they should have seen what happened to PS3 sales because of the high price point. They need it to around $300 to $400 to get to 8million sale mark.


RE: confusing...
By mars777 on 5/3/2007 3:35:17 AM , Rating: 2
Yes and they need it at 10$ to to to get to the 3 billion sale mark.

But they must make money and the phone costs around 250$ to produce.

Assuming 250$ of production cost and the price of 500$ - they are making 250$.
If they put it at 300$ they would make 50$.
In that case 2 million is better than 8 million :P


RE: confusing...
By skaaman on 5/3/2007 10:07:47 AM , Rating: 3
Lets not forget that ATT didn't get the exclusive on this just for the heck of it. You have to imagine Apple gets a kickback on the service plans its device generates as well.


"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs











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