Consumers Unwilling to Grab iPhone at $500

Only one percent of potential iPhone buyers say they’re willing to pay the $499 asking price Apple Inc. is reportedly going to be charging for the device, according to the results of a new survey from online market research firm Compete.

While that may sound like good news for competitor carriers such as Verizon and T-Mobile, 60 percent of those who said they will likely buy the device said they’d switch carrier services to Cingular (now part of AT&T) to get the iPhone, which is available exclusively through their network.

Compete surveyed 379 people in the United States, the majority of whom had both heard of the iPhone and shopped for an iPod. With the June launch of the iPhone coming up quickly, more than one-quarter (26 percent) said their likely to buy an iPhone, but all but one percent balked at the steep entry-level price.

Apple, which is known for price drops at launch (such as the AppleTV which was unveiled with a price tag of $399 but launched for only $299), may well be planning a similar strategy for the iPhone debut. According to Compete, 42 percent of respondents said they’d purchase the all-in-one cell phone immediately if it retailed for $200 to $299.
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