iPhone’s Perceived Usability Contributing To Massive Consumer Demand

Jun 15, 2007 at 12:50pm ET by Greg Sterling

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.

Greg Sterling is a Contributing Editor at Search Engine Land, and writes a personal blog Screenwerk, examining the broader world of media and advertising. He also posts at a Local Mobile Search, which is focused on the mobile Internet.

See more articles by Greg Sterling >

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5 COMMENTS ON iPhone’s Perceived Usability Contributing To Massive Consumer Demand

rustybrick, June 15th, 2007 at 1:11 pm ET:

I would jump if the iPhone supported the high speed wireless network.

Kwyjibo, June 15th, 2007 at 1:50 pm ET:

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.

Jason Murphy, June 15th, 2007 at 5:00 pm ET:

I’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!

3, June 17th, 2007 at 10:03 am ET:

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!

hostriffic, June 29th, 2007 at 4:28 pm ET:

I just found that Intermedia will be the only host supporting email on the new iPhone.

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