iPhone too pricey for Brits?

27-11-2007

by Silicon.com

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 STG269 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.

Almost half (46 percent) of consumers polled said they would never buy an iPhone at that price. While a further 26 percent said although they like the look of the phone it's simply too expensive.

Just 2 percent 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 percent of respondents saying they have heard of the device. Consumers also strongly associate the device with music and e-mail and web surfing.

At the time of writing, Apple had not replied to a request for comment.

Natasha Lomas writes for Silicon.com.

Reprinted with permission from Silicon.com