Iphone

A recent market report on consumers who purchase iPhones indicates lower income consumers have digital entertainment and communication. According to comScore the iPhone fastest growth of purchase for the iPhone were approximately $25,000 to $50,000 and $50,000 to $75,000 annually. The report also stated that approximately 43% of iPhone owners earn over $100,000 annually. The iPhone will cost a consumer approximately $200 and a monthly fee of $70 or more for phone service. The iPhone has proven to be a cost savings because the device is used as a digital device and service, using it as a convenient entertainment and communication instrument. When times are hard and tough decisions are important consumers do not want to try out a device, they want to make sure it will work and will not have to worry about returning it for repair and want it to be dependable piece of equipment (Morgenstern, October 2008). According to comScore (2008), charts below indicate comparisons and annual income data for the iPhone.

iPhone 3G Launch Analysis: Growth of iPhone Owners by Annual Household Income

Source: comScore Mobile

Three-month average ending June, July and August 2008

Household Income Percent Growth June to August 2008

Under $25,000 16%

$25,000 to $49,999 48%

$50,000 to $74,999 46%

$75,000 to $99,999 3%

$100,000 or more 16%

Total 21%

Installed Base and Consumption Trend Among Mobile Subscribers with Income of $25,000-$50,000

Source: comScore Mobile

Number of Users: Three-month average ending June and August 2008

June August Growth Overall Market Growth

Smartphone 2,870 3,314 15% 12%

iPhone 266 394 48% 21%

Listened to mobile music 4,682 4,901 5% -0.3%

Sideloaded music 3,721 3,768 1% -2%

Used email 6,818 7,261 6% 8%

News/Info via Browser 7,934 8,322 5% 3%

Morgenstern, D., (October 2008). Who's buying the iPhone and why. ZDnet. Retrieved from...