“Apple Inc. and its iPhone are set to ride a growing wave of middle-market Americans who are defining a new market segment through their willingness to pay a premium for ‘new luxury’ goods, says a new report from Credit Suisse,” Katie Marsal reports for AppleInsider.
Marsal reports, “According to the 21-page briefing, a ‘new luxury’ product is one that demonstrates technical superiority, improved functionality, and compels an emotional attachment by its owner. It possess higher levels of quality, taste, and aspiration than other goods in its category, but is not so expensive as to be out of reach.”
“‘We believe the iPhone addresses all three of these characteristics as it enters the market harnessing the world’s best operating system (Mac OS) which will drive a step function increase in both functionality and simplicity relative to other products in the market,’ analyst Robert Semple wrote in the report. ‘And while these features can stand on their own, we believe there will be a certain ‘cachet’ associated with owning the iPhone, much like the Motorola RAZR phone when it was launched in 2005,'” Marsal reports.
Marsal reports, “Semple said middle market consumers most likely to adopt the iPhone include empty nesters, single twenty-something professionals, and dual income couples with reduced financial commitments and more disposable income. Divorced women also rank high on the list, according to the analyst, given the increase of women generating income combined with higher divorce rates. ‘In fact, we believe the greatest surprise around iPhone is that women may surpass gadget geeks as the largest customer segment to adopt the iPhone,’ he wrote.”
Marsal reports, “‘The real value and differentiation in the iPhone lies not its sleek design (this is certainly helpful though), but rather, the innovative qualities and resulting capabilities delivered by the Mac OS X, which remains the best operating system in the PC world today in our opinion, and an OS that easily exceeds the capabilities of the scaled down OS’s that dominate the mobile phone market today,’ Semple wrote.”
Marsal reports, “Semple also predicts that iPhone will become a go-to weather tracker along with a pseudo GPS device…”
Much more in the full article here.