High costs could hinder Apple iPhone success

Despite the hype, there is no guarantee that consumers will be flocking to buy Apple's new iPhone, a study by IDC has found.

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By  Michele Howe Published  June 24, 2007

Despite the hype, there is no guarantee that consumers will be flocking to buy Apple's new iPhone, a study by IDC has found.

Consumers may be deterred from buying the device, which is due to be launched in the US in just five days time on June 29, due to cost considerations, according to the study.

A survey of online mobile shoppers, conducted by IDC and Market Insight, found that while most of the respondents - nearly 60% of a sample of 456 individuals - were interested in the iPhone, they were unlikely to buy one any time soon because of the cost of the device and the potential cost of switching carriers.

"While the allure of owing the next ‘cool' device will undoubtedly have early adopters - and die-hard Apple fans - queuing up to get the iPhone regardless of the price, the associated costs of ownership will persuade many others into a ‘wait and see' position," said Shiv Bakhshi, director of mobility research at IDC.

"Despite all the hype, there is little clarity on Apple's (and AT&T's) service plans for the device. This lack of clarity could adversely impact consumer purchase decisions," Bakhshi added.

The survey found that only 10% of respondents were interested in paying the full price and signing a two-year contract with AT&T, the only carrier currently slated to offer the device.

AT&T is retailing the phone for US$499 and US$599, depending on whether it comes with 4GB or 8GB of flash memory.

Nearly 18% of the respondents said they were willing to buy the iPhone if it were priced under US$299, the survey found.

The cost of switching carriers was also identified as a deterrent.

Approximately 17% of the respondents said they would buy an iPhone if their current mobile carrier offered it.

Other potential barriers to widespread adoption of the device include its capabilities and supporting network, according to the study.

4290 days ago

While other manufacturers are understandably nervous and probably funding all sorts of research, the fact of the matter is that Apple's goals are modest and as far as this brand is concerned never doubt the support of the blind fans whose faith in the quality of this brand has never wavered, because they have never been let down.

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