Market Leader or Below Expectations?
NORWALK, Conn., May 1 /PRNewswire/ -- Apple will be entering the
cellular phone handset market for the first time, with the launching of
their new iPhone in June in the United States, and by the start of 2008 in
Europe. There have been many proclamations on how successful the iPhone
will be from capturing a huge percentage of the cell phone market to an
overpriced product with too many functions.
Markitecture set out to shed light on Apple's entrance into the
smartphone market. We surveyed a nationally representative sample of 1,300
people who both owned their own cell phone and were responsible for the
monthly payments. 77% of respondents were at least slightly familiar with
the iPhone, a respectable number for a product that has yet to launch.
Among those familiar with the product, 41% had a good impression of the
iPhone based on everything they had seen or heard. Interestingly,
familiarity with the iPhone is positively correlated with overall
impression - strength of impression increases dramatically with increased
exposure - 83% of those very familiar with the iPhone had an excellent or
very good impression of the product.
Despite the relatively strong impression overall, when asked their
likelihood of buying the iPhone within the next year, trial (assuming 100%
awareness and distribution) was 6%. In fact, two-thirds said that there was
zero chance they would purchase the product. While 6% may appear low for a
high-profile product launch, it actually may actually be very strong for
the cell phone market. The highly successful Motorola RAZR after its launch
in 2004 achieved a 6% market share at its peak.
As for reasons for not purchasing the iPhone, cost was cited as the top
reason; coming in a close second was carrier issues and or contracts, which
could potentially be a tough hurdle to overcome.
Is there an opportunity to broaden the line with lower-price options?
Could Apple have sacrificed some features in order to lower its price point
and significantly increase trial? Did Apple make a mistake with its long
exclusivity deal with Cingular/AT&T and depress trial? Only time will tell
the direction that the iPhone will take in today's cell phone market.
Markitecture
A BrandNew(TM) approach to marketing consulting. Delivering organic
growth through Insight, Innovation, and Implementation.
http://www.markitecture.com
Contact:
Deborah Esposito
Markitecture
203-855-9050
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