Consumers turned off by iPhone price

New research has suggested that the iPhone may be bad news for Apple but good news for its network partner Cingular.

A survey by research firm Compete Inc found that only one per cent of US consumers would be happy to pay $500 for an iPhone, mirroring concerns from some analysts. 

Apple chief executive Steve Jobs said at the iPhone launch that the "low end" version of the mobile device would be sold at $500. 

Barely a quarter of those surveyed said they were interested in buying an iPhone. Of those who would, the ideal price point was between $200 and $299.

But the poll did reveal good news for Cingular, which has exclusive rights to distribute the phone in North America.

Nearly 60 per cent of those who indicated that they would consider buying an iPhone would change network provider to do so.

Apple is still looking for a European supplier for the iPhone and has given no firm date for its release in the European market. 

The survey suggests that it would be in Apple's interest to follow the strategy of launching at a high price and scooping the early adopter and Apple enthusiast market before discounting rapidly.

This is a common strategy for consumer technology companies, although it runs the risk of alienating core supporters.

See also:

Experts warn Apple iPhone is 'no smartphone'

New device not as clever as some think, says ABI Research  26 Jan 2007

Apple iPhone could cannibalise iPod sales

Gartner believes devices will dominate portable digital media market  18 Jan 2007

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