iPhone Interest Could More Than Double With New Price Cuts
Written by Elaine Warner (contact - e-mail) -- September 7th, 2007 |
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By now you’ve probably heard about Apple’s recent product announcements. And while the redesign of the iPod Nano may be getting a lot of hype, the iPhone’s $200 price cut was the talk of the day here at Compete. That’s because we’ve been tracking consumers’ willingness to pay for the iPhone since its original announcement in January.
Most recently, Compete surveyed a segment of consumers (iPod shoppers) in June right before the launch. With regards to pricing, we asked consumers interested in buying an iPhone how much they would be willing to pay.
- 8% of consumers said they would be willing to pay for the iPhone at its original price point of $599.
- At $399, interest increased almost 2.5X to 18%.
- The “sweet spot” of consumer interest appears to be $100-$299.
The introduction of the iPod Touch adds an interesting component. Basically the iPod Touch is an iPhone – without the phone. At a price point of $299, Apple seems to be signaling to its customers that the iPod portion of the iPhone is worth $299, and the phone portion is worth $100. That’s right in the sweet spot, which could mean even more iPhone interest moving forward than the 2.5X increase we’ve shown above.
Compete plans to continue researching iPhone interest and sales as the year continues. Look for our seminar at CTIA Wireless: IT & Entertainment 2007 on October 23rd where we will refresh and expand on our survey results. A panel of industry experts will hold a lively discussion on the iPhone’s impact on consumers and the wireless market. You can also find our previous iPhone study results here and here.
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September 9th, 2007 at 6:48 am
Always enjoy your blog and this is the first time that I’ve posted a comment. Very interesting analysis that Apple is saying “for only another $100″…. very true. The new generation of iPods have long been awaited, so if someone is planning on buying one and they don’t already have an iPhone then it would seem like a natural leap to buy one. Its also just one gadget in the pocket instead of two. Unfortunately I’m in the UK where the iPhone has yet to be launched, so it will be interesting to see if Apple play the same game and launch here for a higher price first. In addition, I think the $100 voucher to existing customers was pure genius by Apple, including a ‘personal’ letter from Steve Jobs.