iPhone 3G Price Decrease Addresses Key Reason Consumers Exhibit Purchase Resistance

The latest findings from The NPD Group, a leader in wireless industry market research, reveal that when it comes to the primary reasons consumers do not want to purchase an iPhone, "high price" was the second-leading reason (42 percent) after "lack of interest" (55 percent). According to NPD's director of industry analysis, Ross Rubin, "The iPhone 3G's original price of $199 set a smartphone benchmark. Halving that price to $99, while adding more features, should significantly expand the market for Apple's smartphone."

Based on consumer tracking information reported in NPD's "iPhone Opportunity and Demand" report, one in five mobile phone owners say they want to purchase an iPhone, but have not yet done so. According to NPD's report, data plan pricing and exclusivity remain key obstacles for iPhone adoption. When it comes to their reasons for not purchasing an iPhone, 18 percent of consumers who have not purchased an iPhone cited the expense of the data plan, while 21 percent said they didn't want to switch carriers.

"Many potential iPhone buyers are looking past lower device prices to recognize the greater expense of a two-year monthly data plan commitment," Rubin said. "Furthermore, customers of other carriers, particularly Verizon Wireless, are unwilling to make the perceived compromises that might come with switching to AT&T."

Methodology: Information in NPD's "iPhone Opportunity and Demand - A Consumer Perspective" report is based on an online survey of a nationally representative sample of 1,579 U.S. adults. Results are projected to represent the entire population of Internet-using adult consumers. Note: Sales figures do not include corporate/enterprise mobile phone sales.