Survey: shoppers balk at iPhone price tag

iPhone Price Tag Backlash

Most cellphone users would only be willing to investigate the iPhone if the asking price drops, according to a just-published survey. Research firm Compete Inc. gauged the reactions of 379 people to the Apple device, and noted that while 26 percent of those polled would like to own an iPhone, only a single percent that smaller group was willing to commit to the $499 price announced in January. However, that latter figure jumped to 42 percent when the price was dropped to $299 or less, Compete said. Most of the respondents were already aware of the iPhone and had at least investigated buying an iPod in the past.

Figures climbed higher still when subjects were asked about switching carriers. A majority -- 60 percent -- of those interested in the iPhone were willing to switch to AT&T to own the handset when the price was right, the survey said.

Analysts at Bear Stearns have suggested that Apple and AT&T are aware of the challenges in selling such a premium device and may change the final amount in the four months between now and the scheduled June launch. Apple has occasionally announced a high price only to lower the figure by the time the device is ready for stores, said researcher Phil Cusick.

AT&T was already confirmed to be exploring price cuts for the iPhone through a leaked survey hosted by PineCone Research. The study offered multiple potential price points to see which one potential customers liked best, dropping the price as low as $299 for the 4GB model when attached to a two-year subscription.

  1. Recto Bold 02/23, 01:41pm

    Almost all iPhone coverage I see seems to focus on it being a 'phone - When price is being considered people are forgetting that it is replacing a phone AND an iPod which I think makes it pretty good value myself. I'll be waiting for the first revision, since in the years I have been using Apple stuff I've always regretted buying the first round of their new products - There's usually something problematic with them which get fixed shortly after. I'm really excited about the iPhone, even if nobody else is....

  1. Tins 02/23, 02:32pm

    The problem is $500 to $600 is incredibly hard to justify spending on anything let alone to come up with. Not to mention what you could do with $600. Let's not forget a mac mini is the same price. You can get an ipod for $200 a smartphone/pda phone for $100 with a subscription, and while I may have two devices I just spent half the money I would have on an iPhone. I love the idea of the iPhone and I will wish I had one but I'm not rich, I can't justify going out and spending 5-6 hundred on it. I have to make rent. People who think the iPhone is so wonderful are either 1.) a mac fanatic talking c*** and won't be able to by one either or 2.) a member of the select few, the rich. I think apple needs to look back at the history of this market and note that no mobile device over $200 to $250 has ever survived. Remember PDAs? Everyone and their brother had one of those for sale, now now one makes them except a few by palm. There is no market for it. People don't have the money for something like an iPhone they will use as little as they will. h*** I want a Lamborgini to commute to work. That doesn't mean there is a market for it. As a result Lamborgini only sells a couple thousand of them a year. And, as a result the only way they stay alive is because of the audi division. devices that will survive the market place have to find a balance between what people say they want and what they will actually pay. And unfortunately a $600 iPhone does not meet that criteria. 1 percent of 26 percent of 379 people is less than on person one person which means one person out of 400 will buy an iPhone. If the iPhone is to survive it MUST come down in price.

  1. paulc 02/23, 04:54pm

    to add in something probably around $70-80 dollars per month for service.

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