Wednesday, 20 June 2007

IDC Says iPhone No Sure Success

According to a new study by IDC, iPhone might not just be a success story for Apple, despite all the hype surrounding it...

According to a new study by IDC, iPhone might not just be a success story for Apple, despite all the hype surrounding it.

Chris Hazelton, senior analyst, mobile technology and trends with IDC said, "The first million, no problem. Interest in this has been building for years. But the '08 goal that will depend on the iPhone experience. If it's not rock solid...."

The IDC survey found that a majority was interested in the iPhone, however there were many drawbacks to mass acceptance. About 10 per cent of the respondents said they were willing to pay full price of the phone between USD499 and USD599 for the 4GB and 8GB models respectively.

Hazelton said there were certain snags that could limit the iPhone to a much smaller group than Apple and AT&T hope. "The exclusivity of AT&T will be the largest barrier," said Hazelton. "Only some people will have timed it right so that they can leave their carrier and won't have to pay an early termination fee." Others, the survey found, were unwilling or unable to eat the penalties.

AT&T's rumoured five-year exclusivity agreement with Apple will give the two companies the time to keep out other carriers from consumers interested in the iPhone, he said. However, that could be a slower process than the companies have planned on. "And then there's the price of the iPhone itself, and the need for a data plan on top of a voice plan," Hazelton said. "That's probably -plus a month right there. People will pay it if they want the iPhone experience, but moving forward, that may be simply too expensive."

Apple will launch the iPhone Friday, June 29, at 6 pm and will be available at AT&T and Apple retail stores in the US.