iPhone may struggle out of the gate

The Apple iPhone may initially struggle to find a mass market, according to a Dallas-based research firm.The iPhone, which is set to be launched this Friday by Apple and AT&T, will find strong demand among early adopter technophiles, but building an immediate larger market may be difficult because of the device’s US$500 price tag and two-year service commitment, according to Parks Associates.
Parks conducted a survey of 2,000 U.S. Internet users and found that only 3 percent of these consumers have a strong interest in purchasing the iPhone at its price point and contract commitment. “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 the Parks Associates Web site. It pulls primary consumer data from Parks Associates’ consumer study Mobile Entertainment Platforms & Services (second edition).

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