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PRESS RELEASE

26 JUN 2007

 

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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 white paper concludes with comments from Parks Associates’ analysts on the strengths and weaknesses of the iPhone. Among the analyses are insights into the likely response from corporate users, the potential boost to AT&T, and the expansion of Apple’s “three-screen” entertainment strategy.

The iPhone: A Consumer Perspective is a free white paper available for download at www.parksassociates.com. It pulls primary consumer data from Parks Associates’ consumer study Mobile Entertainment Platforms & Services (Second Edition). For more information about this study, contact Parks Associates at 972-490-1113 or sales@parksassociates.com or visit http://www.parksassociates.com.

For more market research data, visit Parks Associates’ Fast Facts site http://www.parksassociates.com/fastfacts.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

 

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