Comments on: Are Consumers Ready (To Pay) For The iPhone?

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By: Ryan

Ryan — Sat, 20 Jan 2007 23:07:39 +0000

Some dude - definitely good points, and I agree that more than a few folks will probably shell out the $600 for the iPhone. The point is that they probably won’t have to, especially if the rumors about the potential iPhone margins are true, there will be plenty of flexibility to bring the price down pretty quickly. We did some similar analysis when the RAZR first came out at $500 and folks said pretty much the same thing about the price being too high, and now you can get them for as low as $50. The real interesting thing here is how many people said they will switch to Cingular to get one, and make the $2000-2500 2 year investment for the device. We haven’t asked the music phone shoppers how much the music enablement has driven their decision, but I would guess it isn’t the primary factor, especially given that our results showed that almost 40% of the people who won’t switch to Cingular don’t want a combination device at all. At least not yet. Let me know if you have any other questions