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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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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.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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