The question of consumer demand for the iPhone has been examined in some detail by Parks Associates, the Dallas-based market research firm. They believe there will indeed be a substantial audience of "early adopters, the core audience"--but they make up only 3% of those surveyed, especially considering the iPhone's price points of $599, or $499 for the cheaper model.
"Beyond that segment, we do see a cliff," says Michael Cai, director of broadband and gaming at Parks. "It is a chasm between early adopters and the mass market that will certainly be a chasm for Apple to cross."
And in the case of the iPhone, the chasm may be even bigger than Apple's other most-sought-after devices. When Parks' researchers moved the price point down to $399 or $299, demand remained virtually unchanged. "It was not until we reached $199--the average cost of a smart phone--that demand began to rise," says Cai.
What worries most of those surveyed? Some 50% cited the high price, 32% feared the battery drain of a multi-use device, 30% worried it would perform none of the functions particularly well, and 29% feared it would be too complex to use. Indeed, many were cautious about putting all their digital eggs in one electronic basket. If the battery dies, they've lost their phone, iPod and PDA in one horrible moment.
Still, there are always folks like Narene Hassan who are still ready to stand in line forever for a Wii.
"The Wii was so successful because it wasn't just targeting a small core audience," Cai observes. "After two days, lines for the PS3 disappeared. After six months, you still can't find a Wii, because it's appealing to a mass audience."
So, the question is, Does Apple have a PS3 ... or a Wii?
From the article "Ready Or Not, Here Comes The iPhone!" by David A. Andelman.
