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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: 6% ?
By BMFPitt on 5/2/2007 2:59:14 PM , Rating: 2
If the iPhone was $99 after contract, then maybe they could sell 8 million. The truth is that most people will choose a free phone over a non-free phone no matter what, and sales figures show that.

Personally I wouldn't trade my phone for it if it was free, as the exterior screen wouldn't last a month with me.

RE: 6% ?
By defter on 5/2/2007 3:18:34 PM , Rating: 1
To clarify some things, in 2006:
- over 1 Billion mobile phones were shipped
- over 70 Million smartphones were shipped

For example, selling 8 million units annually means less than 1% of the marketshare.

RE: 6% ?
By Oregonian2 on 5/2/2007 6:52:00 PM , Rating: 2
Markitecture says that 6% of 77% (4.6%) of people who are responsible for their cell phones will be buying an Apple Cell phone within the next year. So for a billion sold, that'd be sales of 46 million according to Markitecture (who is the direct topic here). But, IMO it's not the world-market where their percentages apply although I think it may be for the rest of the numbers spoken.

Percentage would have to be only U.S. Domestic sales unless Cingular (now AT&T) operates internationally (like folk such as Orange do).

I don't think a billion (U.S. definition) is possible in the U.S. anyway, that'd be several cell phones per man, woman, and child.

I wonder if we're not seeing crossed numbers, meaning phones like Motorola's RAZR may have had a 6% world-wide marketshare, it had been revolutionary for all I read (wife just got a KRZR). But the iPhone could not reach that number this year even if every new Cingular customer opted for it (which would never happen, not even close). Cingular is only one section of one market. One couldn't even unlock it and use it on Verizon if one wanted to (not GSM).

So Markitecture has to be talking U.S. numbers only, and even then MAY be talking Cingular numbers only (and even then I think overly optimistic when the money has to hit the road and be paid out).

RE: 6% ?
By retrospooty on 5/2/2007 7:37:08 PM , Rating: 2
"- over 70 Million smartphones were shipped For example, selling 8 million units annually means less than 1% of the marketshare."

On what planet is 8 million less than 1% of 70 million? Its 11% and 11% or 8 milllion iphones is NOT going to happen. Mybe the next iteration of it will, when it supports Sprint, Verizon and 3g on all platforms, AND significantly drops teh price.

RE: 6% ?
By fil6786 on 5/2/2007 7:48:56 PM , Rating: 2
I think he was comparing to the $1 Billion phones.

RE: 6% ?
By fil6786 on 5/2/2007 7:49:45 PM , Rating: 2
Sorry. One billion phones. Can't get money out of my head

RE: 6% ?
By retrospooty on 5/2/2007 11:11:06 PM , Rating: 2
$1 billion dollar phone is the iphone 2 or 3 ;)

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