Parks Associates Blog

Tuesday, June 26, 2007

Apple® iPhone May Struggle Initially to Cross the Chasm

High price point and doubts about utility of a convergence platform could inhibit early adoption

The Apple iPhone may find strong demand among early-adopter technophiles, but building a larger market may be difficult initially, according to "The iPhone: A Consumer Perspective." This new white paper from Parks Associates includes primary consumer data from "Mobile Entertainment Platforms & Services (Second Edition)," a 2007 survey of 2,000 U.S. Internet users. The survey finds only 3% of these consumers have a strong interest in purchasing the iPhone at its $499.99 price point and two-year contract.

"The underlying drivers for converging music, multimedia, and communications capabilities in a device such as an iPhone are certainly prevalent in today's market," said Kurt Scherf, vice president and principal analyst with Parks Associates. "However, the high price point may prevent the iPhone from achieving greater adoption over the short term. It may be an early-adopter product that appeals to technophiles but initially leaves other interested users on the outside looking in."

"The iPhone: A Consumer Perspective" is a free white paper available for download at http://www.parksassociates.com/iphone.htm

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