The latest GMI Poll, conducted by global market intelligence provider GMI (Global Market Insite, Inc.), found that cost is the major factor keeping most people from buying an iPhone. At the $500 price point, only 8% of respondents said they were likely to buy the iPhone, but if the price were to drop to $100, 88% said they would be more likely to buy it.
The Apple-AT&T alliance is another factor keeping people from buying the iPhone. Seven percent of respondents said they would only buy an iPhone when their current service plan expired. A full 60% said Apple’s decision to use AT&T as the sole service provider is a black mark for the iPhone, and may keep them from buying the device.
GMI interviewed 2,356 consumers, representing a broad sample of the population. The interviews were conducted online using GMI’s survey application InstantSurvey.
“Overwhelmingly, people like the iPhone,” says Chris Seals, vice president of research at RDA Global, a telecommunications consultancy based in Houston, TX. “The two problems Apple needs to worry about are the expensive price tag, and the Apple-AT&T alliance. Apple brought down the price a little, but the lack of choice in service providers is still a big problem. In another surprise, consumers said web access and the ability to take digital photos were both more desirable features than playing MP3s.”
MacDailyNews Take: On which planet exactly is a $200 price cut, a 33% reduction, bringing the price down “a little?”
The poll also revealed that 97% of respondents said the iPhone functioned well as an actual phone. 96% said they liked the display. While nearly everyone liked the iPhone, 46% said there were other phone options that were equivalent or even superior to the iPhone.
GMI (Global Market Insite, Inc.) is a leading provider of integrated solutions for global market intelligence for market research firms and Global 2,000 companies. Solutions include market research software, desktop analysis tools, 24x7x365 service bureau, and one of the world’s largest, highly profiled, double opted-in managed panels, providing reach to millions of consumers in more than 200 countries and territories.
Source: GMI
In another poll:Air is the reason most people breathe….
In another poll: Death is the leading killer in America.
I won’t get an iPhone until after I can use my existing AT&T;contract with it. I won’t spend $60 a month on a phone bill when I don’t use all the minutes of my $30 a month plan.
that is the biggest problem with the Phone, your limited not only in carriers but you can’t even use the your existing plans which may be superior to the ones offered for the iPhone.
GM give us a 33% price cut on a Corvette…. or any car in your product offering.
$500 * 8
= $4000
$400 * 14
= $5600
$300 * 38
= $11400
$200 * 68
= $13600
$100 * 88
= $8800
The way apple works is this:
Start high with the price to establish a firm price-equals-quality mindset in the consumer. It implies lack-of-desperation on the part of Apple, that yes, although other things are cheaper, our are unique and worthy of a higher price.
This goes on a few cycles, where they will then introduce several well-spaced versions to cover a few more price points.
Eventually, to saturate all the logical price points, they will make variations to the product that might be so different as to not really be the same thing at all, but instead part of the overall “family”.
Once the family is established, competitors are done for. there is no place for them to gain footing into the spectrum of goods.
And all this is fair, honest, plain old innovation and capitalism, where the consumer gets a quality product they actually love and the company profits mightily.
It costs me $20 a month more than my previous plan. It’s an amazing product.
That tally doesn’t show price is a deterrent, it shows people are cheap and would prefer to pay jack-all for things. No-body needed to do a survey to show that.
I could do one and have how many people would buy a laptop for $1500, $1300 or $1000. Majority of people would say $1000. It’s not rocket science.
“On which planet exactly is a $200 price cut, a 33% reduction, bringing the price down “a little?””
————
The same planet where $399 is still a hefty price tag for most of middle America to spend on a phone.. Despite what it does…
According to GMI’s website –
“Since its foundation in 1999, GMI has grown from a garage in Issaquah, Washington into a global provider of integrated market intelligence solutions with 29 offices around the world.”
Has to be some really dumb companies out there if they think the information these folks provide – price is a deterrent in buying something – is “intelligence”.
BC
MDN Magic Word – doing
As in: They must be doing a lot of business with the Pentagon.
“that is the biggest problem with the Phone, your limited not only in carriers but you can’t even use the your existing plans which may be superior to the ones offered for the iPhone.”
Hmmmm, actually I believe that you can use your existing plan (ref an earlier ATT chart vs iPhone.) if you are an AT&T;customer. While I will not buy an iPhone for a while (mine works fine and I have an iPod), I will most certainly keep it in mind.
@ poll article. Polls show that not having any money or credit is the main reason that people don’t buy cars.
Actually I think its great. Apple has exactually priced the iPhone.
Its reaching the 20 percent of the market that wants a smart phone and is willing to pay for it. If Apple drops the price in a year or so just a little, it will pick up another 40 percent of the market. Hey, let Dell make phones for those that want them free. I am sure there is profit in there somewhere!!! LOL ROFLOL, Cant breathe LOL,
en
I’d buy a Rolls Royce, if only they’d cut the price down. To about £100.
peragrin-
$20.00 of that $60.00 is for unlimited web access, bringing it down to $40.00 a month for 450 nationwide minutes+5000 nights and weekend+rollover. Are you getting all that for $30.00?
Peragrin,
You are ready for an iPhone. Since you are an existing AT&T;customer all you have to do is buy an iPhone. When you activate your phone with iTunes, all you have do is add the Data plan to your current plan. You can keep your current pricing since you are already an AT&T;customer. It will be $20, $30, or $40 more per month depending on if you want 200, 1500 or unlimited text messages. Your contract will be extended for 2 more years. Get your iPhone today!
“46% said there were other phone options that were equivalent or even superior to the iPhone.
That is the 46% of the populace that has never seen or touched the iPhone in person.
At the end of the day, these truths remain:
1. The iPhone is way too expensive.
2. AT&T;service sucks.
Until these issues are fixed, my plastic remains unscanned by any Apple authorized sales clerk.
“While nearly everyone liked the iPhone, 46% said there were other phone options that were equivalent or even superior to the iPhone.”
I’ve has several people tell me that other phones are as good or better. When I pry, they have not actually ever touched any of them, including the iPhone.
There is still a need for more marketing, and more time for it to sink in to people’s brain. We WILL conquer the world. Just wait.
for me the issue wasn’t the cost of the iPhone hardware…i’ve spent $400 on a PDA before…but the monthly cost is daunting. i regularly use over 450 minutes talk time so i opted for the second-tier plan…but $90/month puts a bit more of a strain on my monthly finances.
however, i use several the iPhone’s network features a lot…i’m always getting phone #s and directions with Google Maps, where i can conveniently add the results as a contact and sync it back to my Mac. and since i don’t get vast amounts of email, Mail works really well for me over EDGE. with those features alone i do feel i’m getting my money’s worth.
And I’m sure 100% would buy it for free…
“A full 60% said Apple’s decision to use AT&T;as the sole service provider is a black mark for the iPhone, and may keep them from buying the device.”
And I’m one of them. I will not pay $60 a month to further fatten the greedy suits at AvariceThrough&Through;. And that’s even assuming they will one day have service where I live. Nope, no iPhone for me until it is unlocked and open.
If you only ask five people, is that multi-touching with a ten foot poll?
Why not ask them how many would buy if it’s given free, you will see everyone!
And we can decide the price based on that.
the iPhone is not merely a phone… it is a PIMP (hehe), Portable Internet & Media Product, at 399.00, a very reasonable price.
….46% said there were other phone options that were equivalent or even superior to the iPhone.
Got to love know-it-all people. You buy some new great item, show it off and their first comment is “oh I saw something better than that”.
Actually, this is informative, though it appears obvious.
If someone cut Windows Vista to $50 I still wouldn’t buy it, and it’s not because I think it’s too expensive. I wouldn’t buy a Motorola Razr even if it were $20, just because I don’t want one.
What the study is indicating that the only thing holding back purchases is the price; ergo, people overwhelmingly approve of the iPhone, and would buy one at the right price. The study also breaks down potential consumer adoption at various price points. Apple could own the cell phone market if they sold the iPhone at $100 – almost 90% of people would buy one at $100. Heck, they’d own the cell phone industry at $200 with 70%. Incredible.
Apple (or SJ) has nothing to worry about. This survey will probably provide some value to their marketing team, but we have to keep one thing in mind. Apple is pacing its iPhone growth. It was critical to make a thunderous splash in the first few months, to shatter all records, to gain as much publicity as possible about the device. Once that period is over, they want to grow their market share at a reasonable pace (it takes 18 years for a human to grow from an embryo to a fully-grown adult…). It is clear that once they capture all those that responded positively in the survey, they’ll need to do something in order to get the remaining people. Keep in mind, though that they will get plenty of chance to see, touch and feel the device in coming months, as it continues to saturate the population. They will quickly turn around as well.
As for EDGE, it’s of no consequence. Negligible percentage of users have actually complained about the slow speed; in addition, AT&T;can only improve the service over the coming period anyway.