41% Did Not Purchase 2G iPhone Due to High Cost

PriceGrabber.com, a part of Experian, explores iPhone purchasing trends and smartphone pricing history through its latest Consumer Behavior Report. Results are based on a survey of 3,066 online consumers conducted from May 20 to June 5, 2008.

The iPhone is undoubtedly the most talked-about mobile device in the market and has raised customers' expectations of other vendors. While only 4 percent of survey respondents currently own an iPhone, 42 percent are considering purchasing one. Of the remaining 54 percent who do not intend to purchase the iPhone, 41 percent say that the mobile device costs too much and another 22 percent prefer a network carrier other than AT&T. Prior to Apple's announcement that the new iPhone 3G will cost $199, Apple and Nokia, on average, had the highest-priced cell phones/devices, while BlackBerry(R), Motorola and Samsung provided prices on the low end. With Apple's recent announcement of the lower-priced iPhone 3G, Apple may see online consumers changing their minds about purchasing an iPhone.

Apple gets corporate-friendly
As Apple attempts to appeal to enterprise users and IT departments with the iPhone 3G's Microsoft(R) Exchange ActiveSync capabilities, the company is becoming more of a competitor with long-standing corporate-friendly devices like Research In Motion's BlackBerry. Of the 4 percent of respondents who currently own an iPhone, 40 percent own two devices -- one device for work and the iPhone for personal use. More than half of those respondents plan to get rid of their second device because of the Apple's new synching capabilities.

Phones with MP3 players: common but not a necessity
Of the top 20 most popular cell phones on PriceGrabber.com, 19 have MP3 player capabilities, although only 29 percent of respondents actually use the feature on their phone. Survey respondents also indicated that the MP3 player within the iPhone is one of their least favorite features. The majority of online consumers say that the fingertip navigation feature is the best feature of the iPhone, while 17 percent chose the Web browsing connection and 16 percent enjoy the integrated applications.

Hands-free driving laws increase Bluetooth and headset demands
Forty-six percent of consumers indicated that the second most important cell phone feature behind a large color display screen is Bluetooth compatibility. With 22 U.S. states enforcing cell phone driving laws, five states that have banned handsets completely and 17 others that have varied regulations, Bluetooth and hands-free headsets are becoming a required accessory with devices such as the iPhone. Of the 62 percent of respondents who indicated that they currently use or plan to purchase a hands-free headset, 33 percent said they would because of driving laws and 28 percent said they would for their own personal safety, regardless of their state's laws.

PriceGrabber.com will continue to track online shopping trends and market shares in the coming months and will be tracking the market once the iPhone 3G is available. To view the full Consumer Behavior Report, which also includes cell phone manufacturer pricing trends, the top 20 cell phones/devices on PriceGrabber.com and more results from the iPhone trends survey, please visit http://mr.pricegrabber.com/.