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26 Nov 2007
A new survey suggests that UK consumers know all about Apple's iPhone, but very few are prepared to buy one.
Research firm GfK NOP found that just two per cent of UK consumers have put the phone on their Christmas lists, citing expense as the main reason.
Three-quarters of British consumers have now heard of the iPhone, and over a quarter of the 500 people surveyed said that they liked the look of the device. But price remains a major sticking point.
"Apple's history proves that it has the magic touch when it comes to product development and marketing, but the iPhone has yet to capture the imagination of the UK public," said Richard Jameson, managing director of GfK NOP Technology.
"IPhone hype is in full-force, but our data shows that it is very much a considered purchase, and that its high price is turning many consumers off.
"We must take into account that the UK mobile market's success has been down to subsidised handsets, so the iPhone's price really stands out. Consumers are not used to paying in excess of £200 for a phone."
More than three-quarters of UK consumers associated the iPhone with music, and nearly two thirds also associated the device with internet use and email, suggesting a strong perception of the iPhone as more than just a mobile.
"This is a highly competitive market and the mobile phone manufacturers have very strong brand loyalty," Jameson continued.
"Apple needs more than cutting-edge design to penetrate this market and will have to work much harder in the UK than it did in the US to make iPhone a mass-market proposition."
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Do you agree?
Not Surprised
It was not rocket science but think the people who market this should know the UK market. They should be sacked in hind sight. They sold it with O2 and that was biggest prob. People need to pay up their own tarrif and join O2 if they want the phone. Or pay two tarrifs. Plus the cost would amount to on average over 5 to 600 pounds when you can get one similar (but not as nice looking)for no cost. Nice product but Clive Sinclair marketing as normal. Its the mac v pc or vhs v beta all over again. Sack the marketers and unlock it and it will be ok.
Posted by: simon 27 Nov 2007
Very basic hardware
The quote "Apple needs more than cutting-edge design to penetrate this market" has appeared all over the place. The truth is, even as a fan of Apple products and as someone who appreciates the value of good quality software, I can see it's clearly nonsense to imply the iPhone is cutting-edge. It's not 3G, it's has a poor quality 2 Megapixel camera, no bells and whistles such as an integrated GPS receiver - it doesn't even support Bluetooth (except for use as a headset, so no using it to exchange files, sync contacts, or as a high speed modem in conjunction with a laptop). It has VERY limited storage compared to any similarly sized music player (including the iPod range) and - unlike every other similar device on the market - doesn't support removable media. This is, in my opinion, a very cynical offering from Apple, who are no doubt counting on being able to upsell new, improved versions to the same early adopters in 12 months time. Neither consumers in the relatively sophisticated European or Far East markets are going to be impressed in volume by such a limited and yet relatively costly device - especially one tied to a single operator with a very expensive data plan.
Posted by: Iain Collins 27 Nov 2007
Why so cynical?
Your newletter says "There's hope for this country yet. British consumers aren't exactly falling over themselves to buy the iPhone." Why are you always so Apple cynical? Why is this country's reluctance to buy iPhone cause for hope? Are those big Windows Mobile adverts on this page part of the reason? There's nothing like objective journalism, and this is nothing like objective journalism.
Posted by: DoctorDee 27 Nov 2007
Apple got it wrong
I want an iPhone! But it's not the price of the phone that really puts me off, it's the tariffs. £35 for 200 mins, 200 texts? I pay less than that for at least twice as much and that includes unlimited internet. I think that's where Apple have got the UK market wrong. They are offering low volume tariffs and expecting you to pay for the phone as well. So for now my iPhone will remain in the shop.
Posted by: Mark Thornhill 27 Nov 2007
2 percent
It sounds like another success. Jobs is after 1% of the market and in the UK he will get over 2%. When people get surveyed like this they are going to talk about price in hopes that apple will freak out and drop it. I heard the same story in the US and it sold VERY well.
Posted by: jahrends 26 Nov 2007
Price hike foe U.K
The phone costs $399 in the U.S and £269 pounds in the U.K. So the Brits are paying $557 for the same phone, why is there a $158 price hike for the U.K market. No wonder people don't want to but it.
Posted by: martin 26 Nov 2007
iPhone just isn't a good phone...
...it as a remarkable user interface and is a joy to use, but as a modern cell phone - pah! The UK has blanket 3G coverage, iPhone isn't 3G, it's 4 years out of date. People can get faster, better smartphones phones FOR FREE an a 1 year contract. It's remarkable how woefully far behind North America is with cell phone technology and yet they don't realise it! I'd expect UK consumers to keep their top-of-the-mark phones and buy the iPod Touch for the excellent UI experience.
Posted by: nicemandan 26 Nov 2007