By Natasha Lomas, 26 November 2007 17:00
NEWS
The cost of an iPhone is proving to be a sticking point for UK consumers, according to a survey.
The Apple handset's not-so-dinky £269 price-tag is putting off swathes of potential buyers, according to a poll by market research company GfK NOP which surveyed 500 people across the UK.
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Almost half (46 per cent) of consumers polled said they would never buy an iPhone at that price. While a further 26 per cent said although they like the look of the phone it's simply too expensive.
Just two per cent said they are considering adding it to their Christmas list.
UK consumers willing to shell out for the hardware must sign up to an 18-month contract with O2, Apple's UK iPhone partner. In Germany, mobile operator Vodafone recently won a court injunction forcing Apple and its partner there, T-Mobile, to sell an unlocked version of the phone. While in France, Apple is obliged by law to offer unlocked iPhones after six months.
The success of the UK's mobile market has been driven by subsidised handsets, said GfK NOP, which means the high retail price of the iPhone sets it apart from other offerings. Apple must therefore work much harder in the UK than it did in the US if it is to penetrate the mass market, it said.
The cost of the handset is also a barrier for business: a recent vote of silicon.com's CIO Jury IT user panel found bosses view it as too expensive to roll out as a corporate mobile.
There is one bit of good news for Apple in the survey - consumer awareness of the iPhone is strong, with 75 per cent of respondents saying they have heard of the device. Consumers also strongly associate the device with music and email and web surfing.
At the time of writing, Apple had not replied to a request for comment.
Comments
There are 8 comments. Join the discussion
1. anonymous
From my perspective as a retired citizen £35 per month is far too high a price to pay. My solution is to buy an iPod Touch and add the Mobile Mail from the iPhone. Works brilliantly, and I retain my pay as you go Mobile. Best of all world I say...
2. anonymous
Makes me proud to be British (almost!)
That so many people have rejected this overpriced fashion accessory is wonderful. There is more common sense out there than I had imagined or hoped!
All we need now is for our competition authorities to force Apple to sell and unlocked version and teach them something about the world of COMPETITION and the marketplace. For once our continental friends lead in that respect.
3. Anthony Hunt
Hype <> Sales
Sorry Apple, you got the equation wrong.
At a £100 more than a real iPod it just isn't good value.
4. Simon Cox
Its not a mass market product - not yet. Apple will be quite happy selling it to the early adopters who are happy to shell out for something a little special. Its happened with every other apple product at launch. I expect the price of this version of teh iPhone will reduce dramatically when they bring out the next version - hopefully a 3G version - which will then retail at £269. Interesting to see what the prices are in Germany...
5. Julian Nicholls
For me, like a lot of people, it is £269 too dear. Why would I buy a phone for £269 AND commit to 18 months at £35?
6. Rob Garner
Right Data dumb conclusion – Apple are, from press reports, trying to get around 1% of the phone market with the iPhone. (10m phones in 2008)
50% of those surveyed think the iPhone is way too expensive and don’t like it anyway, yah boo sucks –fine don’t buy one.
26% like it but think it is too expensive – fine don’t buy one
That leaves around 24% who think the iPhone is to some degree cool and possibly not too expensive.
Convert about 5% of those and Apple are on target.
Not looking too shabby to me.
7. Geoff G
The answer is really quite simple - unlock the iPhone - make available to all providers - reduce the price - make available to 'pay as you go' as well as contract.
Why oh why do we need all of this technology in our pockets anyway? It is just adding more stress to working lives - I don't want to be available to everyone and to know everything, every minute of every day!
8. anonymous
I object to paying out so much money for something that I am effectively renting. If I truly owned it, it could be unlocked with out any consequences. As it is, it just proves the fact that what you are paying out for is the opportunity to rent a mobile for 18 Months. What happens when the contract runs out? Will the phone be unlockable then? This is the kind of behaviour I expect from Microsoft, not from Apple, but there increasingly seems to be little difference