"iPhone Overpriced," Say Consumers

by CXOtoday Staff    Jun 20, 2008

PriceGrabber.com, a part of Experian, explores iPhone purchasing trends and smartphone pricing history through its latest Consumer Behavior Report. Results are based on a survey of 3,066 online consumers conducted from 20 May to 5 June, 2008.

The iPhone is undoubtedly the most talked-about mobile device in the market and has raised customers’ expectations of other vendors. While only 4% of survey respondents currently own an iPhone, 42% are considering purchasing one. Of the remaining 54% who don’t intend to purchase the iPhone, 41% say that the mobile device costs too much and another 22% prefer a network carrier other than AT&T.

Prior to Apple’s announcement that the new iPhone 3G will cost US $199, Apple and Nokia, on average, had the highest-priced cell phones/devices, while Blackberry, Motorola and Samsung provided prices on the low end. With Apple’s recent announcement of the lower-priced iPhone 3G, Apple may see online consumers changing their minds about purchasing an iPhone.

As Apple attempts to appeal to enterprise users and IT departments with the iPhone 3G’s Microsoft Exchange ActiveSync capabilities, the company is becoming more of a competitor with long-standing corporate-friendly devices like Research in Motion’s Blackberry. Of the 4% of respondents who currently own an iPhone, 40% own 2 devices - one device for work and the iPhone for personal use. More than half of those respondents plan to get rid of their second device because of the Apple’s new synching capabilities.

Of the top 20 most popular cell phones on PriceGrabber.com, 19 have MP3 player capabilities, although only 29% of respondents actually use the feature on their phone. Survey respondents also indicated that the MP3 player within the iPhone is one of their least favorite features. The majority of online consumers say that the fingertip navigation feature is the best feature of the iPhone, while 17% chose the web browsing connection and 16% enjoy the integrated applications.

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