Only 6% market share for iPhone? Apple wishes!

REF: http://www.itwire.com.au/content/view/11770/1023/ By Stan Beer

Wednesday, 02 May 2007

When Apple founder Steve Jobs took the stage at Macworld in January, he stated how happy he would be if the iPhone managed to capture a 1% share of the 1 billion unit annual global market for mobile phones in its first year. Therefore, if the figures of a new purchasing intentions survey are accurate, Jobs should be jumping in the air and doing heel clicks. According to the survey from US-based market research firm Markitecture, 6% of 1300 mobile phone owners polled indicated that they were likely to buy an iPhone in the next 12 months. Much of the media is portraying this as a negative figure. However, given that an iPhone has not even been viewed let alone handled by the majority of mobile phone users, the survey result appears to be sensational. Translated into a global figure of annual unit sales 6% would be around 60 million iPhones sold, a market share to rival that of the highly successful Motorola RAZR. However, the news gets even better for Apple. According to the Markitecture survey, 77% were aware and 41% had a good impression of the iPhone based on everything they had seen or heard. What's more, familiarity with the iPhone is positively correlated with overall impression - strength of impression increases dramatically with increased exposure - 83% of those very familiar with the iPhone had an excellent or very good impression of the product. The survey cited the fact that two thirds of consumers surveyed said there was zero chance they would buy an iPhone. Once again, at this stage of the game, with no product in the market, it is a fair bet that Apple is not too dissatisfied with the knowledge that 33% of the market would at least consider an iPhone when making their next purchase. The biggest hurdles for Apple to overcome in selling iPhone into the mobile phones space, according to survey, were the high cost (US$499 and US$599), followed by carrier issues (just Cingular in the US) and contracts (iPhones will be sold with a two year contract). However, 6% of consumers surveyed have already indicated that they're willing to buy an iPhone despite the hurdles. If the product lives up to its promise after release and Apple manages to rope in a few more of the 33% prepared to at least consider the new phone, Apple could end up with a monster on its hands.