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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 Saist on 5/2/2007 2:35:20 PM , Rating: -1
I would agree Ballmer is out of touch. Microsoft has failed in every market outside Microsoft Windows and Microsoft Office. In the smart phone market segment Microsoft holds less than 3% market share, while Linux holds above 14%, and Symbian dominates with over 74%. In embedded devices such as routers and DVR systems, Debian Linux is by far the most commonly used OS outside of MonteVista Linux, both which dominate WindowsCE by orders of magnitude.

In terms of game consoles Microsoft had to restate the number of original Xbox Units sold each year... 4 times in a row. The original Xbox is in dead last for worldwide sales, never surpassing the Gamecube. In addition, the original Xbox cost Nvidia and Intel so much money, that they refused to have anything to do with the Xbox 360. The vendors now involved with the Xbox 360, specifically IBM and ATi made sure that their arrangements saw money up front.

The list goes on and on and on. So, I don't know what Ballmer was, or is thinking, but speaking up on the Iphone and it's chances in the same market where Microsoft has failed multiple times... I dunno... indicates a less than stellar perception of reality?

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...

“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith

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