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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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Balmer out of touch
By Scorpion on 5/2/2007 1:51:28 PM , Rating: -1
Seriously, would I expect any other comment from this man?

Sure the iPhone has a high price tag, but is there another phone like it? I wont be buying one any time soon, however, I applaud Apple for bringing healthy competition and innovation to the mobile phone market. I see this as a sign of much better phones in the future. I for one am frustrated by the mostly terrible interfaces for most phones. Even WindowsCE isn't as good looking and user friendly as what appears to be on the iPhone. Apple is using their strong points to their advantage, as they should. And it appears Balmer is once again just jealous.

Microsoft has struggled and struggled to achieve the level of elegant, intuitive interface that Apple is so well known for, and they always muck it up. As I said, I'm really glad there will be some competition in the phone market to really push things in a new direction.

BTW, I've never owned an Apple. But I'm mature and smart enough to at least credit them for what they are good at.

RE: Balmer out of touch
By Homerboy on 5/2/2007 2:01:00 PM , Rating: 3
actually there are several phones very much like it

RE: Balmer out of touch
By Flunk on 5/2/2007 2:25:38 PM , Rating: 1
And most of them run Windows Mobile.

RE: Balmer out of touch
By johnadams on 5/2/2007 2:27:26 PM , Rating: 3
I know people in Malaysia who are dying to get their hands on one - even with the 500 US dollar price tag, which converts into almost 2000 Malaysian Ringgit . Now these guys aren't loaded or anything (they earn about 2.5K per month), but they do have a portfolio of credit cards.

Apple built a strong brand and they can afford to charge extra for it. Many people would buy it as a status symbol. Surprisingly most that buy it for that reason are the everyday wage-earners. imho.

RE: Balmer out of touch
By defter on 5/2/2007 3:04:09 PM , Rating: 2
Isn't the part of problem that the Iphone will be initially available for a very small market, and will come much later for example to Malaysia or rest of the Asia. Thus I cannot see how Iphone can achieve significant (>5%) marketshare.

RE: Balmer out of touch
By Saist on 5/2/07, Rating: -1
RE: Balmer out of touch
By creathir on 5/2/2007 2:53:19 PM , Rating: 1
Did you pull your stats out of your rear?

3% market share on smart phone devices?!?

Are you insane?!

I suppose with Blackberries running around, they consitute a large portion, but this business of Windows at only 3% is assinine.

- Creathir

RE: Balmer out of touch
By defter on 5/2/2007 3:14:28 PM , Rating: 4
Why are you attacking previous poster without doing any kind of research yourself? His numbers are roughly correct.

"The market share for smartphones is commonly reported by the OS running the phone. In September 2006, Todd Kort, a principal research analyst for Gartner, Inc., reported market share for smartphone mobiles in Q2 2006:

"Symbian accounted for about 71 percent of worldwide smartphone shipments in the second quarter of 2006 and serves the consumer market well. Microsoft, Palm, and [Blackberry maker] RIM each accounted for only about 3 percent of smartphone shipments in the second quarter, with Linux accounting for the remaining 19 percent."

Depending on who’s counting and when, the numbers fluctuate, but not by much. Canalys, reporting on Q3 2006, similarly gave Symbian 72.8%, Linux 16.7%, Microsoft 5.6% , RIM 2.8%, and Palm 1.8%."

RE: Balmer out of touch
By cocoman on 5/3/2007 8:59:17 AM , Rating: 2
Are pocket PCs included in the stats????
I have never seen Pocket PCs included in the smartphone category, so. Yes it would make sense only about 3% share. Now add pocket PCs and you have a totally different number, I am pretty sure. Sorry for not researching, don´t have time...

RE: Balmer out of touch
By darkpaw on 5/2/2007 2:38:53 PM , Rating: 1
Whats the be jealous about? They'll probably sell 10,000 windows based phones for every one of these that sell.

Regardless if you like them or hate them, Apple = overpriced.

RE: Balmer out of touch
By Scorpion on 5/2/2007 3:08:29 PM , Rating: 1
Sure, and that's why the iPod has done so well and continues to do so well, because it's overpriced. The Zune hasn't made much of a significant impact from what I can tell. While I may agree with you that Apple is overpriced a lot of times, you can't deny that they sell their products.

And you really think that with an Apple iPhone on the market that the current Windows phone platform will continue to do so well? I expect it to get a Vista-like overhaul, or something more similar to the look of the iPhone. I have no doubt in my mind that Microsoft is going to be watching the iPhone very closely in fear of what it could do.

RE: Balmer out of touch
By darkpaw on 5/2/2007 4:47:16 PM , Rating: 2
The Zune has too many DRM issues and MS hurt themselves with that one by not even supporting their own previous standard. Its really no wonder the Zune is a failure.

I'm still quite happy with my old Zen personally.

I think MS already has a Vista clone version of Windows Mobile (6?), but it really wasn't much of an upgrade over 5.

RE: Balmer out of touch
By AlexWade on 5/2/2007 4:53:40 PM , Rating: 2
Another problem of the Zune was the color. Everywhere I saw a Zune featured, it was the brown color one. You know, the one that looks like poo, to put it politely. And, to top it off, song sharing was called "squirting". Squirting with your brown Zune. The whole Zune thing felt like XMen 3: some corporate guy who commutes to work in helicopter trying to decide was cool and didn't leave well enough alone.

RE: Balmer out of touch
By kevgav on 5/2/07, Rating: -1
RE: Balmer out of touch
By dosun on 5/2/2007 4:25:31 PM , Rating: 2
The comparison is skewed. The Dell is a 17" vs the 15" MacBook. Also those prices are from last year. Granted the Apple notebooks are probably better built than Dell's.

RE: Balmer out of touch
By darkpaw on 5/2/2007 4:48:56 PM , Rating: 2
Those two expensive phones your quoted are also targeted at businesses or professionals which can afford the expense. The iphone is not a business class phone.

Quoting year old prices on PC hardware is just funny. I bet those macs still cost near the same exact price and the PCs are now half that.

RE: Balmer out of touch
By fic2 on 5/2/2007 5:56:10 PM , Rating: 2
Hmmm, I bought a Dell Inspirion E1505 April '06. Mine has a CoreDuo 1.6, 17" BrightView screen, 1.5G ram, 80G 7200rpm HD and I only paid about $800 for it. So a larger screen, little bit slower processor, smaller, but faster HD and more memory I paid about $1200 less.

Configuring a 15.4" Dell 6400 to the specs as the MacBook cost $1107. MacBook is still $2000 (from Apple's website).

Oh, and Balmer is dillusional.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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