Reports: UK consumers slow to adopt Apple's iPhone
While Apple hasn't released official numbers on early sales of its iPhone in the UK, new reports suggest the company may face difficulty replicating the level of success it experienced with the US launch of the handset back in June.
According to a recent report by the Register citing reliable channel sources, exclusive UK iPhone carrier O2 has activated just 26,500 iPhones since its launch two weeks ago, well below expectations of about 100,000 units.
"Carphone Warehouse, the main retail outlet for Apple's hot item [in the UK], had taken stock of 50,000 iPhones, but had only managed to shift around 11,000 in the first weekend," the report states. "O2 has over 400 stores and Apple just 12 in the UK. Phone industry sources estimated that 25,000 units might have shifted in that first weekend - but that now seems optimistic."
The Register observes that the number of activations may not actually represent the number of iPhones sold, as some may have been set away as gifts and have not yet been activated. Still, the publication said, "the gross is unlikely to be significantly higher."
One factor potentially limiting the adoption of iPhone in the UK may be the handset's steep price of 269 pounds. Market research firm GfK Group recently polled 500 people across the country and found that, outside of "Apple cult" fans, uptake in the wider public is likely to be limited due to the unusually high cost of the device.
Of those surveyed, a large 72 percent said that they would not buy one due to the price.Â*This includes 26 percent who said they like the look of the iPhone but found it too expensive, in addition to another 46 percent who said they were "never going to buy it at that price."
Only 2 percent of respondents to the survey said they were even considering adding the Apple handset to their Christmas list, indicating that the package on offer has not hit the spot for UK consumers.
"AppleÂ?s history proves that it has the magic touch when it comes to product development and marketing, however the iPhone has yet to capture the imagination of the UK public," said Richard Jameson, a representative for GfK NOP. "We must take into account that the UK mobile marketÂ?s success has been down to subsidised handsets, therefore the iPhoneÂ?s price really stands out and consumers are not used to paying in excess of 200 pounds for a phone."
Jameson added that "Apple needs more than cuttingÂ?edge design to penetrate this market and will have to work much harder in the UK than it did in the US to make iPhone a mass-market proposition."
Still, iPhone topped GfK NOP's rankings in brand awareness for specific features, with 78 percent of survey respondents associating the iPhone with music and 65 percent mentioning it in accordance with email and web surfing.
According to a recent report by the Register citing reliable channel sources, exclusive UK iPhone carrier O2 has activated just 26,500 iPhones since its launch two weeks ago, well below expectations of about 100,000 units.
"Carphone Warehouse, the main retail outlet for Apple's hot item [in the UK], had taken stock of 50,000 iPhones, but had only managed to shift around 11,000 in the first weekend," the report states. "O2 has over 400 stores and Apple just 12 in the UK. Phone industry sources estimated that 25,000 units might have shifted in that first weekend - but that now seems optimistic."
The Register observes that the number of activations may not actually represent the number of iPhones sold, as some may have been set away as gifts and have not yet been activated. Still, the publication said, "the gross is unlikely to be significantly higher."
One factor potentially limiting the adoption of iPhone in the UK may be the handset's steep price of 269 pounds. Market research firm GfK Group recently polled 500 people across the country and found that, outside of "Apple cult" fans, uptake in the wider public is likely to be limited due to the unusually high cost of the device.
Of those surveyed, a large 72 percent said that they would not buy one due to the price.Â*This includes 26 percent who said they like the look of the iPhone but found it too expensive, in addition to another 46 percent who said they were "never going to buy it at that price."
Only 2 percent of respondents to the survey said they were even considering adding the Apple handset to their Christmas list, indicating that the package on offer has not hit the spot for UK consumers.
"AppleÂ?s history proves that it has the magic touch when it comes to product development and marketing, however the iPhone has yet to capture the imagination of the UK public," said Richard Jameson, a representative for GfK NOP. "We must take into account that the UK mobile marketÂ?s success has been down to subsidised handsets, therefore the iPhoneÂ?s price really stands out and consumers are not used to paying in excess of 200 pounds for a phone."
Jameson added that "Apple needs more than cuttingÂ?edge design to penetrate this market and will have to work much harder in the UK than it did in the US to make iPhone a mass-market proposition."
Still, iPhone topped GfK NOP's rankings in brand awareness for specific features, with 78 percent of survey respondents associating the iPhone with music and 65 percent mentioning it in accordance with email and web surfing.
Comments
http://www.gfknop.com/customresearch.../index.en.html
Crap network at a crap price. Why aren't they getting this?
The whole system actually works well, unlike the so-called competition.
IMHO Apple has done a poor job of educating consumers that the price of iPhone with its service plan is actually less than the so-called competition. Furthermore, the average consumer doesn't need mobile Internet so badly that they will pay the higher service fees associated with unlimited data, but for people who do need mobile Internet (and Internet applications that actually work), the iPhone works best and costs less. Only the initial cost for iPhone is higher than for most (but not all) smart phones.
It's not cheaper than the competition. Not by a long shot.
The Poll...
http://www.gfknop.com/customresearch.../index.en.html
The European marketing is obviously less pronounced than the US. Even my parents know about the iPhone, but 12% of people on the UK who took an internet poll have never heard of it. 12% doesn't sound high, but 12% of people who took the time to do an internet poll does.
The iPhone does it all for me. However for a person who wants to makecalls listen to music etc you can get a free phone. Apple need to understand this.
However I have the feeling they do understand this and to watch for the iPhone 2 as I imagine thi sis here to "cream" from those, like me who are prepared to pay for something that works and works with my mac.
For me it is cheaper than any rival, and I came of a good deal, over 3 hours of surfing a day (on the train)
The European marketing is obviously less pronounced than the US. Even my parents know about the iPhone, but 12% of people on the UK who took an internet poll have never heard of it. 12% doesn't sound high, but 12% of people who took the time to do an internet poll does.
Where does it say it was an internet based poll? I suspect it wasn't given NOP's history.
Granted if it was cheaper and on a better network (Orange), then I'd probably buy one for my Mrs and Dad too. I think the UK are too used to having half decent handsets for free with their £35 / month contracts, let alone a £45 or £55 / month contract. The general public don't seem to grasp the benefits of the inclusive unlimited data within the tariff.
Everyone that sees my iPhone wants to have a look. They always ask how much it cost. When I reply "just over £250" they say "oh, that's not too bad. I thought it was more than that". The media like to sensationalise everything and one of those things is the cost. In reality it's not much, it just depends how you say it!
The package clearly isn't attractive enough, or people aren't informed enough. For instance, the free wifi via The Cloud is a very nice feature that people simply don't know about. O2 aren't the most popular carrier, and maybe people are hanging on for 3G.
Also there isn't so much spare money about to spend on whims like a phone, Christmas is approaching with the associated costs, the tax burden isn't nice, the housing market is stalling, ...
If it was launched in June like in the US, it could have done better. People instead are going for subsidised phones (cheap *now*, regardless of overall cost) like the Nokia N95. In a very mature market for mobile phones Apple is going to have to do a much stronger job of informing the consumer why they want an iPhone.
Apple cant expect to throw their weight around the UK and get away with it in the phone market.
If the phone itself was up to standards with the other market leaders then they wouldnt have any problem as they would have the attention of the real phone enthusiasts.
Hopefully this will be a lesson to them.
And for those saying the public arnt educated enough about the tarrif come off it please they arnt dumb. Its the fact that the phone lacks basci functions that all other phones have coupled with the price which has put of majority of the rest.
Apple made a mistake and now they have to admit it and either cut the price or lose out on sales.
I have needed mobile data for a long time email etc but nothing has really hit the spot all too expensive and horrible to use + no mac synching.
I've had an SE p910i for about 3 years now. Perfect syncing over bluetooth with a Mac and I can use it as a 2G/HSCSD modem with my Mac. Apple even supply an iSync plugin for it.
If you want 3G data then T-mobile will give you a free USB 3G modem if you sign up to their Webn Walk contract for £15 a month.
You can't do any of that with an iPhone or as cheaply.
Sheesh - here's is something that actually, for once, feels like something you'd expect to be using in the 21st century, and all people can do is bitch and moan !
I do think that the iPhone is not for everyone - especially if you just want a cheap phone just to make phone calls on - but I also think that for a surprising number of people it's really the first true convergence device that you can actually use.
Kinda weird. Now that the Mac is finally making serious inroads, we're seeing the whole pattern repeated with the iPhone....
If O2 allowed current customers to simply buy an iPhone and continue with their current contract I think sales would improve. But only a fool (or someone who has enough money to burn) would buy an iPhone when stuck with the awful selection of tariffs O2 has put on offer.
Apple's adverts are shiny, but they need to tell the consumers more than how the device is quite funky and looks nice.
The package clearly isn't attractive enough, or people aren't informed enough. For instance, the free wifi via The Cloud is a very nice feature that people simply don't know about. O2 aren't the most popular carrier, and maybe people are hanging on for 3G.
Also there isn't so much spare money about to spend on whims like a phone, Christmas is approaching with the associated costs, the tax burden isn't nice, the housing market is stalling, ...
If it was launched in June like in the US, it could have done better. People instead are going for subsidised phones (cheap *now*, regardless of overall cost) like the Nokia N95. In a very mature market for mobile phones Apple is going to have to do a much stronger job of informing the consumer why they want an iPhone.
Yep. At the moment there's also adverts for SE Walkman phones (available free mostly) and LG Viewty with it's excellent 5mp autofocus, image stabilising camera. And it looks nicer than the iPhone advert.
When are you people going to realise that a overated fashion phone with a handful of nice features isnt enough to succeed in the UK market. We arnt easily suckered into buying phones as you are let alone at extortionate prices.
The real problem (certainly from my point of view) isn't the cost of the iPhone. I don't think the price is too unreasonable - certainly when compared to an iPod. The aspect that totally puts me off is O2's god awful iPhone specific tariffs. Let's be fair: it's bad enough having to pay for the phone (when you can get any other for free), but after shelling out all that, then being stuck with having to pay £35 for 200 mins and 200 texts! What rubbish. I'm on O2 now and I pay £20 for 600 mins and 800 texts. There is no phone in world that is cool enough to persuade me to change to a tariff that drastically different!
If O2 allowed current customers to simply buy an iPhone and continue with their current contract I think sales would improve. But only a fool (or someone who has enough money to burn) would buy an iPhone when stuck with the awful selection of tariffs O2 has put on offer.
I agree, the problem mostly is the prices linked with the contract - with a contract it averages at £50 per month for the cheapest contract - not so good for 200mins & 200texts. Yes, there's the unlimited data, but I don't think this is what Apple intended?
On 3, I can get unlimited 3G data for £5 as an add-on to my Mix&Match contract (min £12) - I mean, with a free phone, isn't that the kind of deal we're looking for in the UK?
As a phone however, the iPhone beats anything I've ever tried before. In Cardiff we have 1 O2 shop and 2 CWs on one street, and it'll take you ~20 min to get a go on one of the things.
If O2 allowed current customers to simply buy an iPhone and continue with their current contract I think sales would improve. But only a fool (or someone who has enough money to burn) would buy an iPhone when stuck with the awful selection of tariffs O2 has put on offer.
I've heard tales that O2 allow that to happen in certain cases. Maybe talking to O2 will help?
Where does it say it was an internet based poll? I suspect it wasn't given NOP's history.
You're right. I assumed it was an internet based poll because I'm used to seeing so many damn internet polls.