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.