iPhone Pricing Higher Than Competitors as Smartphone Sales Grow

Smartphone purchasers are willing to pay $11 more for an Apple iPhone than for a comparable Google Android-based smartphone, according to an iGR survey.

Smartphones accounted for 71 percent of overall mobile handset sales in May 2012, with basic feature phones representing only 28 percent of sales, according to a survey from iGR, a market strategy consultancy focused on the wireless and mobile communications industry.

The survey, which polled more than 1,000 U.S. consumers, also finds that smartphone purchasers are willing to pay $11 more for the Apple iPhone than for a comparable Google Android-based smartphone. Consumers are, on average, willing to pay $135.90 for an Apple iPhone, compared with $124.65 for an Android device, according to the iGR survey.

Overall, the majority of consumers who recently purchased a handset of any type report a mean handset purchase price of approximately $114.23 (weighted). Similarly, the majority of consumers who plan to buy any type of mobile device in the near future plan to spend on average approximately $127.25 (weighted), still nearly $9 below the average price that survey respondents say they would spend on an iPhone.

With the rise of mobile email, social networking and constant connectivity to the Web, consumers are developing an increasing interest in mobile devices that can connect them to the Internet, the survey reveals. Close to 69 percent of survey respondents say the mobile devices they plan to buy in the future are likely to be smartphones. In addition, 60 percent of the survey respondents iGR interviewed report using a smartphone.

The market research report, "U.S. Consumer Smartphone Profile: Current Use and Future Purchase Plans," which looks at consumer trends in the United States regarding smartphones, also indicates that while the smartphone market skews toward a younger demographic (below 45), older consumers are starting to find smartphones more appealing. Indeed, the purchasing demographic must shift in the next few years in order for smartphone adoption to increase, the report notes.

This article was originally published on 05-30-2012
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