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Survey: Consumers not willing to pay $500 for iPhone

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By LC Angell

Contributing Editor
Published: Friday, February 23, 2007
News Categories: iPhone

Only 1 percent of consumers are willing to pay $500 for Apple’s iPhone, according to results of a survey released this week. Nearly half of consumers surveyed, however, would buy the device if it was priced from $200 to $299. “Online market research firm Compete Inc. surveyed 379 people in the U.S., most of whom had heard of the iPhone and have shopped for an iPod, to find out how interested they are in the device to produce the uncommissioned report,” reports InfoWorld. “Among the 26 percent of respondents who said they’re likely to buy an iPhone, only 1 percent said they’d pay $500 for it. When Apple introduced the iPhone in January, it said it would cost $500 on the low end. 42 percent of those who said they’re likely to buy the phone said they’d pay $200 to $299.”

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Comments

21

i got me a job just so i can buy an iPhone even it’s up to $500.

Posted by samsonite on February 23, 2007 at 7:29 PM (PDT)

22

I will take my PS3 over an iPhone any day. I can’t see a $300 price cut, but I think a $100 cut will do wonders.

Posted by Ian Donnelly on February 23, 2007 at 8:46 PM (PDT)

23

Maybe they’ll take the poll again after the Oscars?

http://digg.com/apple/Apple_to_advertise_iPhone_during_Oscars

Posted by t3 on February 24, 2007 at 12:25 AM (PDT)

24

1) I don’t believe the stats, I’m sure the iPhone will be a LOT more popular than that. Just because it’s expensive doesn’t stop people buying, it makes it a fashion icon!

2) As great as the iPhone is, I won’t buy one. Based on 2 things: features, and compatibility. Features: it must have a hard disk. My music and photos fill the majority of my laptop’s 80GB hard disk, there’s no way I’m going to start sorting that collection down to 8GB. And no built-in keyboard, which makes typing a LOT easier.
Compatibility’s an issue for mobile devices. I’m a die-hard Mac freak, but when I was given an old Pocket PC by a friend (locked to an expired contract), I could unlock it. Not with the iPhone, no third-party software. With mobile devices, virusses are no big deal (no master copies), so Windows isn’t all that bad. PocketPutty (SSH), VLC & TCPMP (movie players), SJPhone (SIPc client), WiFiTunes (remote iTunes sharing client), VTI (Ti83+ Emulator), Pocket E-Sword (Bibles), ConverterCE (unit converter), MSDict (Oxford English Dictionary), Pocket Translator. Even if Apple rewrote ALL of those, and more. It still wouldn’t bring me over. And yes, I do rely on those programs almost daily. One really important, but doubtful to be written piece of software? An MSN messenger client. Apple thinks the whole world uses iChat. Not my friends.

So even though I love Apple, and love the new iPhone, it doesn’t meet my requirements. If anyone at Apple is listening, heed this comment.

Pete

Posted by Pete B on February 24, 2007 at 2:17 AM (PDT)

25

Remember the costs of R&D.

2 years of R&D Jobs said.

Posted by Simon on February 24, 2007 at 3:46 AM (PDT)

26

Jobs could have spent a billion dollars on R&D. Wouldn’t make the iPhone any better deal. The end price is all that matters to consumers, not some misguided desire to support Apple’s expenditures on research and dev.

Posted by Surf Monkey on February 24, 2007 at 4:48 AM (PDT)

27

Surprise, the facts are overwhelming first the false story on free service now this survey.  Apple & AT&T I think the consenus is unanimous, People Don’t like the price.

So yes early adopters (most people that read this site) will buy the phone regardless of price, but to sell the volume Jobs & AT&T want and to get into the iPod sales range, one of 2 things have to happen: the price has to come down and/or the memory storage has to go up to 30 GB + to make it a true video iPod.  Also I’m going to need to see 3G HSPA vs. Edge to push me over to a sale.

I predict Apple stores are packed when it comes out to demo it, but at $500 I’m curious how many walk out the door as sold.

Posted by wheatie on February 24, 2007 at 6:20 AM (PDT)

28

I have a feeling that since this was a product Apple announced six month early, the saw it as an opportunity to gauge the market reaction at the price.  I currently think I will change to AT&T and get an iPhone, my contract with Verizon doesn’t expire until September, but if the price remains as it is, with the 2G network and only 4 or 8 GB of memory, I’ll probably extend my verizon service monthly until I see either updated features and/or a price drop.  There may also be a subscription discount for the iPhone, I think Jobs said it the keynote said $499 with service, but things don’t seem to be set in stone, at any rate that would factor into the decision making factor.  While I’d love to have this phone, I’m far from needing it, I do after all have my iPods, cell Phone, and laptop (not that I “need” any of these either), so I have time on my side.

Posted by kaioslider on February 24, 2007 at 10:27 AM (PDT)

29

Well, nobody would even think of buying an iPhone while they are still paying for their Christmas shopping bills. I think Apple will eventually lower the price, like when the 1G iPod came out, it was like $400 dollars, but now you can get a video-enabled iPod for the same price with 16 times the storage space.

I think Apple makes the price high so that people will WANT it, to increase the hype. Once Apple breaks even on the R&D, I bet they will lower the price. And remember, the carrier will probably lower the price when you pay for a term or contract.

Posted by The Soup Nazi on February 24, 2007 at 11:02 AM (PDT)

30

Well, the suggestion that everyone here will buy one because we’re “early adopters” is flatly wrong. I bought an iPod the second they came out. I will not be buying an iPhone until the price drops and the feature set improves. The MP3 player market sucked before Apple got in. You couldn’t get anything even remotely comparable to iPod. The phone market on the other hand is chalk full of serviceable smart phones. iPhone seems to be pretty darn cool but it’s not as revolutionary a step beyond what’s already as Jobs would have you believe or that iPod clearly was when it debuted.

Posted by Surf Monkey on February 24, 2007 at 12:10 PM (PDT)

31

Haha. Wow who didn’t see that coming. But the thing is like a BlackBerry and people are expecting it to be a regular low budget cell phone. I wouldn’t have bought it for $500 but if they took away some features and lowered the price to about $250 then I would buy it.

Posted by Chris on February 24, 2007 at 12:42 PM (PDT)

32

iPhones will be popular at first for the early adopters, but the masses will come only when the price tag gets lower.

Look at iPod when it first came out, it didn’t sell in large numbers until they made it PC compatible and lowered the price/upped the HDD capacity.

I think a $399 price tag will start attracting some serious attention.

Posted by Mike on February 24, 2007 at 6:36 PM (PDT)

33

The situation with iPod was different. It filled a gaping hole in the MP3 market. iPhone doesn’t do the same thing. There are already lots of good smart phones out there. iPhone is just another one in the pack. There won’t be the same rush by so-called early adopters that iPod saw. It’s shooting for a far more exclusive market.

Posted by Surf Monkey on February 24, 2007 at 7:01 PM (PDT)

34

A quick Google produces: “iSuppli estimates there were 2.7 billion cellular subscribers globally in 2006.” Assume “whocares” is correct and the number is 0.26%.

That’s still over 7 million customers. Apple must be ecstatic about this news.

Posted by m.s. on February 24, 2007 at 9:03 PM (PDT)

35

499 is not so bad…the Lgprada phone is 700..and it doesn’t have has many features..I think samsung model will be $599…..so ...whatever..

Posted by dfk on February 25, 2007 at 5:29 PM (PDT)

36

I know this sounds odd, but I think Apple only wants a small number of people to buy this first iteration of the iPhone.
Think about it, if you make this first gen iPhone hard to get with the high price then only the Apple fans/gadget freaks buy this first gen. You are going to have a set of people who are going to be free iPhone evangelists. This will help generate more hype and buzz about the iphone so when the 2nd generation comes out at a lower price you are going to have a large market of people who have desired it and are ready to buy because of the first gen owners.

Posted by Jake on February 26, 2007 at 12:40 AM (PDT)

37

I think the price is way too high for a cell !!! This is just a way to find yor wallet and empty it as quickly as they can !! But people say they wont pay 5 bills for it, but when it comes out and its listed for $500 people will still buy it, so its a bunch of BS what people are saying !!

Posted by Ed on February 26, 2007 at 12:58 AM (PDT)

38

Duh! Who would pay $500 for a 4GB iPhone and/or $800 for a 8GB iPhone?
I guess people who might want to run tests on it or break it apart.

Posted by doompod on February 26, 2007 at 6:11 PM (PDT)

39

It is good to be on the side of the sane minority once again.

Posted by dasmb on February 28, 2007 at 1:32 PM (PDT)

40

First, Cingular would NEVER discount service to boost sales of any type of phone no matter how much you pay for it, because they don’t make money off hardware, just overpriced services. Seccond, Yeah, The IPHONE will take any sim card…As long as it says CINGULAR or THE NEW ATT for the same reasons as the prior statement. This is why all other phones have some kind of contract discount. Cingular buys the phones, then sells them at a lower price because they know that they will make more money off the service than the phone. The IPhone is different in this respect however, because apple defines their own price, not Cingular. Same goes for Ipod. Stores buy them for 10 dollars less than you pay, but they can’t change the price, because Apple won’t let them. Cingular sucks, but they are not ripping us off. Apple is!

Posted by DJ DR J on August 20, 2007 at 8:44 PM (PDT)

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