Apple, AT&T neophytes to define iPhone audience - report

[AppleInsider]

A last-minute analysis of the iPhone's most eager buyers confirms stereotypes of successful younger men as its target market, but also reveals that Apple can expect a large number of converts.

Profiling a cross-section of those aware of the phone in May, Solutions Research Group has found that many of those who will "definitely" investigate the phone at its minimum $499 price are new to Apple, AT&T, or both.

Of the interested respondents culled from the 1,230 total, nearly half -- 48 percent -- said they didn't already own an iPod, making the iPhone their only (if not very first) Apple-branded music player. The news could be very beneficial for the handset creator, which may bank on newcomers to reach its forecast of 10 million sales by the end of 2008.

"Half of the potential buyers are not current iPod users, so it will expand Apple's 'installed base' footprint," said the study's director, Kaan Yigit. If Apple followed its iPod strategy of launching less expensive hardware over time, he predicted, market growth would be steady.

Potentially as surprising is the typical choice of cellular service provider. Those most likely to queue in line on June 29th are existing subscribers to AT&T's only GSM-based rival, T-Mobile USA, at 15 percent. AT&T's existing customers are second to express an interest at 12 percent, the researchers note. Sprint and Verizon customers show the least attraction to the phone at 7 and 4 percent respectively.

This last point could be critical to AT&T, Yigit added, as the network is poised to snare the majority of iPhone buyers from its competitors rather than from the ranks of its faithful. The top-ranked carrier is in the midst of a transition away from the Cingular name and could see its new name gain added respect by offering the Apple device.

"The big winner is AT&T," he said. "In one nifty move, they are able to inject cool into their brand at a speed and scale that's hard to believe. Among T-Mobile customers whose contracts are coming up for renewal this year, a significant proportion will look at this product in place of, say, Sidekicks and the like. And among AT&T customers, a significant minority... will look at upgrading."



A full 73 percent of the complete survey were said to already know about the iPhone, which is "remarkable" for any pre-launch device, Yigit commented.

Less shocking were the cultural and gender demographics of the interested subjects. The majority fit the pattern of the young, successful male. According to Solutions Research Group, the average iPhone customer is a 31-year-old man with a college degree and an income of $75,600 per year -- a salary 26 percent higher than the American average. Almost half (43 percent) of all likely buyers lived in technically adept states such as California and New York, but only 28 percent were female. Younger buyers dominated, with 63 percent aged 34 or younger.

These patterns were to be expected given Apple's image, Yigit claimed. Cautious respondents were more likely to be more "mainstream" and include more women, while the iPhone's early fans were more often bound to fit the Apple user stereotype.

"This product is still mainly a male urban-hipster object of desire at this stage and with this price point," the director said.

However much the survey might reinforce common perceptions of who will buy the iPhone, Yigit pledges that the results will be part of an ongoing study of digital consumerism tracking the iPhone as it reaches customer hands in coming months, proving whether or not Apple's promotional buzz translates to real subscribers.

[ View this article at AppleInsider.com ]

[SpamSandwich]

How interesting. No cannibalization of iPod sales here, presumably... and I'd like to know how many 30+ year old American males make $75K today... geez, it took me about 40 years to get to make that kind of money... dammit.

[MacSuperiority]

Now the iPhone is a "male urban hipster object of desire".... What the hell does that mean?

[palex9]

seems like everybody already knows who will be making the iphone the biggest success in cell phone history. it reminds me of 1999 when you heard all of the investment gurus on tv say that the market can never go down again...

anyway, others sure to flock to buy the iphone are...

fat men (why not)
two-toed borneo orangutan
educated klingon females 20-30
zyphoid beeblebrok (not sure about the spelling)
cavemen (cause the iphone is so simple to use)
the elusive giant squid (extemely intelligent)
dr 90210
paris (when she gets out of the slammer) and nicole

[badNameErr]

Originally Posted by palex9

zyphoid beeblebrok

He'll be buying two....

[a_greer]

I am young (22) single, and make great money for someone my age (almost $40k) that puts me directly in Apples key demo, and I really want one: the problem, I just cant justify more than $300 for a cell phone EVER...come on, let Cingular put their usual rebates on it...I would get it with the usual $200 discount, but without a hefty premium, I don't do 2 year contracts.

[Hobbes]

HALF of potential iPhone buyers don't own iPods?

That's incredible.

Not what I expected.

[laurence13]

Originally Posted by SpamSandwich

How interesting. No cannibalization of iPod sales here, presumably... and I'd like to know how many 30+ year old American males make $75K today... geez, it took me about 40 years to get to make that kind of money... dammit.

Actually, the statistics are incorrect. I believe they mean 57000, rather than 75000, however even that is incorrect. The average income for the entire population is closer to 23000, but if you disregard children it falls closer to 36000. I'm not sure where they got the figure quoted, but http://en.wikipedia.org/wiki/Househo..._United_States has details and links to the US census pages with the actual data.

[Ireland]

Originally Posted by Hobbes

HALF of potential iPhone buyers don't own iPods?

That's incredible.

Not what I expected.

Well half the ones in this survey.

[iMichael]

I don't have an ipod. That is part of, but not the, reason I will be getting an iPhone.

I bought an iPod Nano for the wife, a year or so ago, but never bought one for myself.

I had thought about it, just never did it.

[sigs21]

they better get out some better rate plans for this phone .. ATT does not have a good enough deal for me to spend 600 on a phone..

The more I read the less I want.. There is way to much speculation around this product.. Apple has built the hype now let us figure what to do...

[ajhill]

Wow, a new category of Apple purchasers, young, hard working men. Nobody cares about that market They don't have any disposable income. They won't want to show off their new iPhones to hot women in nightclubs... No not young men....

And none of them will notice any of the other cool toys in the Apple Store on their way to the iPhone display. Which by the way will be placed in the back corner of the Apple stores (Kinda like the milk at supermarkets) so that you will have to walk past all the other cool temptations that Apple Inc. has to offer.

And don't forget the iPhone Accessories! iHolster, iBluetooth Earbud, iBMW docking station, iDashboard mount kit (for turn by turn nav), iWhatever else they can think up.

Sales for the Apple stores are going to be great in July. Lots of impulse buys!

Al

[Rot'nApple]

Originally Posted by Hobbes

HALF of potential iPhone buyers don't own iPods?

That's incredible.

Not what I expected.

I've never owned an iPod but am considering an iPhone later on, for my first iPod/smart phone, after I get a feel for the product and the wireless carrier, at&t, from earlier adopters.

Currently have T-Mobile, an old phone and not bound by any contract, so it all depends on the word on the street about at&t's service in my particular area. I'm in a dead spot at home with T-Mobile's GSM. I hope at&t's GSM provides a little better coverage. I can barely get one bar signal strength when walking around outside in the yard at my house.

Or is AT&T's GSM coverage the same as T-Mobile's GSM coverage and I'll be in a dead spot no matter what? That would really suck and probably disuade me from purchasing an iPhone. Anybody know about T-Mobile versus AT&T's GSM coverage? Any difference??

But even if at&t's GSM coverage sucks and causes me to not buy an iPhone, I still may pruchase my first iPod if one comes out like the iPhone sans phone. Either way, Apple will have a first time iPod owner soon.

[ajhill]

1. What will the calling/data plans run per month? $5-$10 BELOW Verizon would be killer. After all Verizon's network is faster. Especially since there won't be much traffic on it after June 29th.

2. MORE IMPORTANTLY: How much will Apple's cut be of each of the next 24 months of my phone bill? $2, $3, $5

Stay tuned Mac Heads... Oh, and you newbies with way too much cash, welcome to you too!

[BlackSummerNight]

I just saw this phone while surfing. Looks pretty sweet.
http://krakow.msnbc.msn.com/

[SpamSandwich]

Originally Posted by BlackSummerNight

I just saw this phone while surfing. Looks pretty sweet.
http://krakow.msnbc.msn.com/

I especially liked this---"HTC's Touch smartphone improves upon ebery Windows Mobile device of the past."

I'm sure eberyone will lub it.

[kenaustus]

I have a feeling that there will be different markets that were not addressed in the survey - like high school students that hound their parents to buy them one and the girls will probably outnumber the boys = = they seem better at getting daddy to reach for the wallet without mowing the yard.

The other interesting factor will be the use of OS X in the iPhone, giving every PC owning iPhone users a chance to "use the Mac" every day. As the Widgets get added over time this exposure is going to increase, adding another halo effect to the Macs.

[Hobbes]

Originally Posted by Ireland

Well half the ones in this survey.

Yeah. Not a small survey though. 1,300 people.

Or is AT&T's GSM coverage the same as T-Mobile's GSM coverage and I'll be in a dead spot no matter what? That would really suck and probably disuade me from purchasing an iPhone. Anybody know about T-Mobile versus AT&T's GSM coverage? Any difference??

But even if at&t's GSM coverage sucks and causes me to not buy an iPhone, I still may pruchase my first iPod if one comes out like the iPhone sans phone. Either way, Apple will have a first time iPod owner soon.

I think it might be different? T-Mobile and AT&T have different networks, no? Not really sure though.

I am awfully tempted by the iPhone but if the data plan is too expensive or it's impossible to get one I'll be holding out to upgrade my 4G iPod with a fullscreen iPod as well (aka iPhone sans phone).

I just find it interesting that half of those surveyed with maximum interest in the iPhone don't have iPods. That's great for Apple.

[sigs21]

Originally Posted by Hobbes

Yeah. Not a small survey though. 1,300 people.



I think it might be different? T-Mobile and AT&T have different networks, no? Not really sure though.

I am awfully tempted by the iPhone but if the data plan is too expensive or it's impossible to get one I'll be holding out to upgrade my 4G iPod with a fullscreen iPod as well (aka iPhone sans phone).

I just find it interesting that half of those surveyed with maximum interest in the iPhone don't have iPods. That's great for Apple.

I agree its all about pricing.. i am not paying for expensive phones to get raped by aTT on there bad plans..
Ie: the unity plan... dang I might as well get 3k mins its cheaper then that sucker..

[solsun]

Originally Posted by sigs21

I agree its all about pricing.. i am not paying for expensive phones to get raped by aTT on there bad plans..
Ie: the unity plan... dang I might as well get 3k mins its cheaper then that sucker..

I think there is going to be a custom plan for iPhone.. Something like $99 unlimited voice and data.. Or maybe I'm just hoping.

[Hobbes]

Originally Posted by solsun

I think there is going to be a custom plan for iPhone.. Something like $99 unlimited voice and data.. Or maybe I'm just hoping.

Er, what carrier offers unlimited voice? I've never seen it.

If voice (say 500 min + 5000 nights & weekend) plus unlimited data is over $60/mo for the iPhone, I'll probably pass.

[melgross]

Originally Posted by MacSuperiority

Now the iPhone is a "male urban hipster object of desire".... What the hell does that mean?

It means that you are not one of them, and that the phone is not for you.

[melgross]

Originally Posted by laurence13

Actually, the statistics are incorrect. I believe they mean 57000, rather than 75000, however even that is incorrect. The average income for the entire population is closer to 23000, but if you disregard children it falls closer to 36000. I'm not sure where they got the figure quoted, but http://en.wikipedia.org/wiki/Househo..._United_States has details and links to the US census pages with the actual data.

Both you and Spam are wrong here.

If you read the paragraph more carefully, you will see that they are talking about those males who are interested in the iPhone. Those males are college graduates with an average salary of $75,000 a year.

This isn't so difficult to believe. Many college grads today can expect a high five figure salary walking in the door in many companies, if they are the right person, in the right profession.

Several professions will give even more.

And these males averaged 31 years of age, which will be several promotions later for the "successful" male they are describing.

And as they are a 31 year average, they could be lawyers, doctors, professors, computer people in leadership positions, etc.

[mark's good]

Here back in old Blighty, I have yet to see this mythical Apple hype about the iPhone. Steve Jobs presented it and demonstrated live its functionality, and now we have 3 or 4 TV ads. In between we have had news of the carrier and its release date. The only hype I have seen is the media self generated waffle. Apple-centric press praise the fact that it will be at least twice as good as any other phone, and dream up extras that could be added, while the PC-centric press deride the fact that is only twice as good, surely a sign that Apple is doomed - only estimating 10 million sales in a year, Zune will smash that with 1 million sales Microshaft maths is wild.

[Feynman]

Didn't a report come out like a few minutes ago that more than half the cell phone population were female and that they would trade in their phones for the iPhone? Could we come up with some kind of analytical reports based on AI statements and Sean Wu and come up with something that's based on fact?

[Louzer]

Originally Posted by kenaustus

The other interesting factor will be the use of OS X in the iPhone, giving every PC owning iPhone users a chance to "use the Mac" every day. As the Widgets get added over time this exposure is going to increase, adding another halo effect to the Macs.

Sorry, but there's not much OS X on the iPhone that anyone can see. Its more of a 'front row' type interface on top of OS X. So, its not like people will be using this and going "Wow! OS X is a great OS! I'm getting a Mac!"

[SpinDrift]

Originally Posted by Louzer

Sorry, but there's not much OS X on the iPhone that anyone can see. Its more of a 'front row' type interface on top of OS X. So, its not like people will be using this and going "Wow! OS X is a great OS! I'm getting a Mac!"

Enough people said "Wow! iPods are ace! I'm getting a Mac" though.

[Porchland]

Originally Posted by palex9

zyphoid beeblebrok

Sounds like one of the names Eddie Izzard went through in the "Dress to Kill" bit about how Engelbert Humperdinck picked out his name. Awesome standup.

Engelbert Humperdinck is dead you know. No, I'm just kidding. Seriously, he died. I just saw it on CNN.

[mstone]

Originally Posted by melgross

Many college grads today can expect a high five figure salary walking in the door in many companies, if they are the right person, in the right profession.

My maid makes five figures

[anantksundaram]

Originally Posted by AppleInsider

Almost half (43 percent) of all likely buyers lived in technically adept states such as California and New York.......

[ View this article at AppleInsider.com ]

Example

Top Six States in U.S. Residential Broadband Penetration

Hawaii 35.0%
Massachusetts 32.2%
New Jersey 30.6%
Connecticut 29.1%
New York 28.6%
California 28.4%

Source:

http://www.websiteoptimization.com/bw/0407/

[EruIthildur]

Originally Posted by Hobbes

Er, what carrier offers unlimited voice? I've never seen it.

If voice (say 500 min + 5000 nights & weekend) plus unlimited data is over $60/mo for the iPhone, I'll probably pass.

Sprint offers unlimited voice and data... We thought about it then decided against it.

[melgross]

Originally Posted by mstone

My maid makes five figures

Reading comprehension!

I said *high* five figures.

You pay your maid $75,000 a year?

[melgross]

Originally Posted by anantksundaram

Example

Top Six States in U.S. Residential Broadband Penetration

Hawaii 35.0%
Massachusetts 32.2%
New Jersey 30.6%
Connecticut 29.1%
New York 28.6%
California 28.4%

Source:

http://www.websiteoptimization.com/bw/0407/

California and New York get mentioned because they have the highest populations in the category.

[SpamSandwich]

Originally Posted by melgross

Reading comprehension!

I said *high* five figures.

You pay your maid $75,000 a year?

Ex-wives can be very costly.

[melgross]

Originally Posted by SpamSandwich

Ex-wives can be very costly.

Ooh! That would be all my wife needs to hear, compared to a maid!

[Eric1285]

Originally Posted by melgross

California and New York get mentioned because they have the highest populations in the category.

They've also got a very high concentration of Mac users and yuppies. No doubt the iPhone will be a great tool for getting people to switch, as people will show it to their friends and their friends will be wowed, and think "gee, maybe I should get an iPhone/iPod/Mac".

[melgross]

Originally Posted by Eric1285

They've also got a very high concentration of Mac users and yuppies. No doubt the iPhone will be a great tool for getting people to switch, as people will show it to their friends and their friends will be wowed, and think "gee, maybe I should get an iPhone/iPod/Mac".

To be sure.