iPhone not suited for mass appeal?

Tech News

By Stevie Smith Jun 20, 2007, 13:43 GMT

With the official retail unveiling of the much talked about iPhone only a handful of days away – abrupt last minute upgrades notwithstanding – some 19 million consumers in the United States are reportedly already salivating at the prospect of securing Apple’s latest device. However, a new IDC survey claims that problems with mass-market appeal may yet hinder the success of the iPhone.With the retail release clock counting steadily down to June 29, expectations are naturally on the rise concerning the already iconic buttons-free touchscreen iPhone, but, following a related survey, analysts at IDC are suggesting that only a small proportion of tech-loving consumers may be willing to splash the (significant) amount of cash necessary to attain Apple’s newest definition of mobile trend cool.In its survey, market research outfit IDC polled 456 randomly selected individuals via the MyProductAdvisor Web site, which saw some 60 percent of those quizzed about the appeal of the iPhone offering up that they were certainly interested in the new device. However, those respondents also stated that they were not likely to invest in purchasing an iPhone unit in the immediate future. Indeed, in terms of polled consumers actually willing to dip into their bank accounts come June 29, only 10 percent said they absolutely would be buying the iPhone.It’s unlikely that a mere 456 people are representative of the consuming masses as a whole, but if any stock is to be placed in IDC’s research then a purchasing return of 10 percent will probably cause Apple to grin from corporate ear to corporate ear. More specifically, the California-based computer company has outlined that it hopes to pocket approximately 1 percent of the mobile phone market in the iPhone’s initial 12 months at retail, a figure which amounts to around 10 million handsets. IDC’s figures point to a possible sales performance more closely associated with the 100 million-unit mark – which, while perhaps possible over a number of years, is something the iPhone is highly unlikely to achieve quickly, especially given its elevated price point.

IDC further revealed that a high proportion of those individuals polled were not enamoured by the iPhone’s pricing ($499 for the 4GB model, $599 for the 8GB model) or that AT&T existing as the smartphone’s only current carrier would mean further expense for those needing to switch in order to enjoy Apple’s handset. Indeed, some 18 percent of the respondents noted that they would perhaps purchase the iPhone if it were $299 USD or lower, while 17 percent said they’d consider a purchase if it were available through their existing carrier provider.

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