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Study: Pricey iPhone Still a No Go - InternetNews.
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Study: Pricey iPhone Still a No Go

Apple's iPhone made an appearance during commercial breaks of last night's Academy Awards telecast, but despite the pre-release hype, consumers aren't ready to roll out the red carpet for the pricey product.

Only 1 percent of those likely to buy the combined iPod and cell phone said they'd pay Apple's $500 price tag, according to a survey published by online marketer Compete Inc.

iPhone
How much would you pay for this?
Source: Apple

Although Apple could take heart that 26 percent of online shoppers surveyed said they'd likely buy an iPhone when sold in June, there was an underlying message: lower the price.

Despite the vote of confidence in the iPhone concept, only 1 percent of the 26 percent "very likely" iPhone buyers would purchase the phone for the suggested $499 figure. Instead, 40 percent of the 379 people surveyed in January said they'd sign on only when the handset drops to $200 to $299.

The survey, conducted a week after Apple unveiled the iPhone in January, held better news for Cingular Wireless, now part of AT&T . Around 60 percent of online shoppers surveyed said they'd switch wireless carriers in order to get the iPhone.

"Price was a significant barrier," said Miro Kazakoff, director of Compete's wireless practice. For the iPhone to succeed, Apple or Cingular Wireless have to either lower the price or better communicate its value. Until then, the product's appeal is limited.