iPhone Pre-Launch Consumer Survey
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iPhone Pre-Launch Consumer Survey

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This presentation gives an early glimpse at Consumer perceptions on the iPhone, its pricing, functionality, and features. The deck was presented on a Bear Stearns Bearcast on the Thursday prior to the ...

This presentation gives an early glimpse at Consumer perceptions on the iPhone, its pricing, functionality, and features. The deck was presented on a Bear Stearns Bearcast on the Thursday prior to the iPhone launch.

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iPhone Pre-Launch Consumer Survey Presentation Transcript

  • 1. iPhone Pre-Launch Consumer Survey miro kazakoff director, wireless compete, inc. 617 933 5615 telephone 202 489 4798 mobile [email_address] To get more Compete, Inc research please visit: http://www.competeinc.com/industry_solutions/telecom/research To sign up for the Compete Inc. monthly Telecom newsletter please visit: http:// www.competeinc.com/signUp
  • 2. Compete’s methodology provides a unique view of consumers
    • Industry’s largest continuous consumer behavior database
      • 2 million consumers representative of the US online marketplace
      • 360-degree view of in-market consumers, across competitors, partner and client sites
      • 80 million page views per day
      • 100 terabytes of data
    • How do we get our data?
      • Diversified panel acquisition strategy
      • Panel balancing and projection methodology
      • Patent-pending grid architecture and technology
      • Rigorous privacy and data security procedures (no personally identifiable information)
  • 3.
    • This study compares the results of the initial survey fielded by Compete shortly after the iPhone announcement in January with the responses to similar survey targeting conducted in early June
      • Both surveys targeted consumers observed researching iPods online
    • Consumers’ interest in purchasing the iPhone has quadrupled since its announcement
      • A decrease in the percentage of people who want to purchase the iPhone more than offset by an increase in the number of people willing to pay the asking price
    • Those interested in the device appear ready to switch carriers in order to buy it
    • Concerns about the iPhone’s Internet browsing speeds appear to be a major potential reason for interested customers to pass on the device
    • Consumers would be willing to buy a similar device from other manufacturers traditionally in the mobile phone space; providing a window of opportunity to Apple’s competitors
    Executive Summary
  • 4. Effective purchase interest in the iPhone has quadrupled since the product’s announcement
    • At announcement only 0.3% of respondents said were very likely to buy an iPhone and willing to pay over $500 for it
      • By early June that number had quadrupled to 1.2% of respondents
    Asked of all Respondents How likely would you be to purchase an iPhone? & How much are you willing to pay for an iPhone? (Percentage selecting option)
  • 5. Fewer people are planning to buy the iPhone…
    • Only 15% of respondents indicated that they are “very likely” or “extremely likely” to purchase an iPhone compared to 26% in January
    Asked of all Respondents How likely would you be to purchase an iPhone? (Percentage selecting option)
  • 6. … but more are willing to pay for it
    • 8% of iPhone shoppers who are very likely to buy an iPhone are willing to pay more than $500 (as compared to only 1% in January)
    • Current market players may have an opportunity to promote value in the period before any price drops
    How much would you be willing to pay for an iPhone? (Percentage selecting option, n=103, June 2007) Asked of iPod Shoppers who were very or extremely likely to purchase an iPhone
  • 7. Switching carriers is not a barrier for iPhone enthusiasts
    • For people seriously interested in the iPhone, switching carriers is not a hurdle; 60% indicated that they would be very likely to change providers in order to get an iPhone, consistent with January findings
    How likely would you be to switch carriers in order to purchase an iPhone? (Percentage selecting option, n=62, June 2007) Asked of iPod Shoppers who were very or extremely likely to purchase an iPhone and were not AT&T customers
  • 8. Sprint/Nextel customers are most likely defect for the iPhone
    • Interest in switching carriers has dropped across all of AT&T’s competitors, but remains highest at Sprint/Nextel
    • Interest in switching from Verizon has dropped the most substantially, suggesting their network messaging resonates even with those interested in the iPhone
    How likely would you be to switch carriers in order to purchase an iPhone? (Percentage selecting “Very or Extremely Likely” to switch, by current carrier) Asked of Respondents who are interested in the iPhone and are not AT&T customers Jan. 07 Jun. 07 Extremely likely Not at all likely 1 4 2 3 5
  • 9. Cost is still the primary barrier to switching
    • Satisfaction with current carrier, price and early termination fees are still the main reasons why customers would choose to stay with their provider
    • In contrast to January, when 40% of respondents indicated that they are generally uninterested in combining cell phone and music player into one, only 18% held that opinion in June
    How much of an impact do each of the following have on why you would not switch carriers to purchase an iPhone? (top-2 box score on 1-5 scale, n=55, June 2007) Asked of iPod Shoppers who were not AT&T customers and unlikely to switch carriers
  • 10. Consumers’ concerns about specific iPhone issues are low and undifferentiated
    • Before release consumers did not appear substantially concerned about any one of several hypothetical iPhone issues
    Asked of all Respondents Which of the following would be your concerns you might have about the iPhone? (Percentage selecting option, n=680, June 2007)
  • 11. Data connection speeds may sour consumer readiness to purchase an iPhone
    • 58% of iPhone shoppers indicated that they would be “less likely” or “considerably less likely” to buy an iPhone if its internet browsing speed would be comparable to a dial-up modem
    • AT&T must set expectations carefully with data connection speeds on this device or risk opening a big opportunity for other carriers
    Asked of iPod Shoppers If Internet browsing speed on the iPhone was closer to a dial-up modem than to a cable/broadband modem what impact would this have on your decision to purchase the iPhone? (Percentage selecting option, n=307,June 2007)
  • 12. Consumers appear willing to try similar device from other phone manufacturers
    • Although Apple was the most popular choice, 22% of respondents indicated that they would primarily like to purchase iPhone-esque device from Motorola
    • Other cell phone manufacturers could leverage their market reputation to offer comparable devices at lower prices
    Imagine a mobile device that was a combination of wireless phone and digital music/MP3 player. The device would have an oversized color screen, a touchpad and at least 4GB of storage. Which manufacturers would you be most likely to purchase this device from? (Percentage selecting option, n=62, June 2007) Asked of all Respondents
  • 13. Most respondents prefer to keep their music and phone calls separate
    • Most consumers still prefer two separate devices for their phone calls and music needs
    • There is still an opportunity to deliver great phones that focus on making calls
    Asked of all Respondents Which of the following do you prefer regarding your cell phone and music player? (Percentage selecting option, n=680, June 2007)
  • 14. To find more about Compete, Inc research please visit: http://www.competeinc.com/industry_solutions/telecom/research To sign-up for Compete’s Newsletter please visit: http://www.competeinc.com/signUp For other questions please contact Compete at [email_address]