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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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Actual iPhone Market
By mbarry1961 on 5/2/2007 5:28:49 PM , Rating: 1
Enough with the whining about the $500 price tag for the iPhone already. There are legions of mid and executive management prospects for this device from companies all over the world where the purchase price is a tax write off. The cost is of no importance and, if the device is able to make their staff’s lives even one iota easier, they will have it in a heartbeat. It should be obvious that the initial target market segment for the iPhone isn’t going to care about watching Pirates of the Caribbean. They want the business functions to work and work without peer…forget the fluff.

The question remains whether Apple can capture enough of this potential initial market to afford to create a down-market offering later on but it shouldn’t shock anyone that this is a market strategy from this company.

RE: Actual iPhone Market
By darkpaw on 5/2/2007 5:32:03 PM , Rating: 5
As mentioned earlier, without integration into common business applications this will not be purchased by any mid and executive management. No exchange or lotus integration? No sale.

RE: Actual iPhone Market
By mbarry1961 on 5/2/07, Rating: -1
RE: Actual iPhone Market
By namechamps on 5/2/2007 8:03:28 PM , Rating: 2
So instead of a native app he can try an run a web based version over EDGE on an iphone. Then when someone emails him an excel document he does what? While pocket excel isn't very useful for data entry it is good for grabbing the file taking a look and sending sending back an email, IM, or phonecall reply.
No integration into corporate networks equals a 0% chance of it being picked up by large corps. Just like on the desktop side. Apple's market share of the business computer market is what a fraction of 1%. Wonder why? It's not just the OS, it's email (exchange server), network logins, radius integration, etc.

This will appeal to the I have to much money and am too cool for a windows phone group but will do nothing in the corp world.

RE: Actual iPhone Market
By KentState on 5/3/2007 9:57:46 AM , Rating: 2
You do realize there is a huge difference between browsing email messages on the web and the intergration that a Blackberry has with Exchange? How are you suppose to have an updated calendar that notifies you when an appointment is about to begin?

RE: Actual iPhone Market
By Oregonian2 on 5/2/2007 7:17:12 PM , Rating: 2
Being tax deductible does not make things free, it just gives a discount about that of the net corporate tax rate minus accounting costs to handle the deduction or worse if it has to be depreciated over time (is $500 over the limit?).

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