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Jun. 15, 2007 at 12:50pm Eastern by Greg Sterling
iPhone's Perceived Usability Contributing To Massive Consumer Demand
iPhone skeptics take note: The Wall Street Journal (subscription required) reports that the iPhone has sparked massive consumer interest and may enable AT&T to capture other carriers' customers. According to an M:Metrics survey cited in the article:
Two-thirds of mobile-phone users who are interested in purchasing the iPhone aren't AT&T customers but would be willing to switch carriers to obtain the device, according to a survey in May of about 11,000 cellphone users . . . The carrier with the most to be concerned about is T-Mobile USA, according to the survey, with 12.5% of its customers expressing a high interest in the phone; followed by 8.1% for Sprint Nextel Corp.; and 6.7% for Verizon Wireless. T-Mobile is seen as especially vulnerable because it has a high share of users in the 18-to-24 age group.
The article says that "about 19 million people in the U.S., or roughly 9% of cellphone users, are highly interested in purchasing the iPhone, even when armed with the knowledge they'll need to pay $499 or $599 to snatch up one of the two versions."
These are big barriers and yet the interest is great. Is it just hype? I don't think so. The phone is beautiful and, in that sense, a fashion statement. There's also the lure of being one of the first iPhone owners.
But the bigger issue here is usability. The iPhone promises a much-improved user experience and the level of interest among U.S. consumers shows how hungry people are for a phone on which they can have a better mobile Web-browsing experience. The iPod part doesn't hurt either.
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By Greg Sterling
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Reader Comments
I think the iphone has the potential to be a revolution for the cell phone market. Apple is very good at building UI and the hardware to support it.
I could see them moving 10 million units by the end of the year easily.
However, I don't think I'll make that price jump when there are far cheaper (though maybe not as good, but good enough) alternatives on the market.
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June 15, 2007 1:50 PMI'm teetering. I want one, but I kinda want to see if they release yearly versions of it like they do the iPod. I'm all for the full safari implementation though!
There is definately demand for the iPhone but recent research (http://www.dialaphone.co.uk/blog/?p=391) has indicated that the price is simply too high.
In the UK most phones are subsidised and are given away free with a 12 or 18 month contract. However, it is rumored that iPhone is not going to be subsidised and therefore not only have you got to pay £30 per month for 24 months (that is minimum contract for the iphone) but you will have to pay approx £300 upfront. Typical Apple!
I just found that Intermedia will be the only host supporting email on the new iPhone.
I would jump if the iPhone supported the high speed wireless network.