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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's probably right
By Hoser McMoose on 5/2/2007 2:45:17 PM , Rating: 2
Honestly at $500 with a 2 year contract, the guy probably has a point. And I don't expect the price to drop by nearly as much in the next couple years as some other phones (eg the Razr). The hardware used in the phone is much more expensive than what is used in other phones.

$500 is a LOT of money for a mobile phone. I picked up my phone for under $200 with no contract, about $250 with all the accessories. It's got a 2MP camera, built-in MP3 player, video record and playback, 2GB of memory and <gasp> it can even make phone calls. This phone (a Nokia 6275) that would cost about $50 with a 2-year contract is getting pretty darn close to what Apple is offering on their $500 phone. I'm not sure Apple has enough extra features on their phone to convince people that the extra $450 is worth spending.

Also I think the touch-screen, while it may look snazy on store shelves, is going to prove VERY unpopular when people actually try to use it.

RE: Balmer's probably right
By corduroygt on 5/2/2007 5:14:10 PM , Rating: 2
I totally agree with your points, especially with the touchscreen. I would say the iphone has a chance if it did not have a touchscreen. It will sell many, then people will realize how clumsy it is to use the touchscreen.
I personally am looking to buy a nokia e65, small, light and can do everything...

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