Tuesday, November 25, 2008

iPhone: The Common Man's Internet Device?

Apple's iPhone is seeing a boom in traction among low- to middle-income users.

By Judy Mottl

Apple's iPhone isn't just for the deep-pocketed crowd. A new study reports that the popular smartphone's buyers are increasingly skewing toward lower incomes -- and helping Apple grow its user base despite the current dismal economic conditions.

While 43 percent of iPhone 3G users earn over $100,000, iPhone adoption increased 48 percent this summer among those earning annual salaries of between $25,000 and $50,000, while it grew 46 percent among those earning between $25,000 and $75,000.

The iPhone demographic study, conducted by comScore (NASDAQ: SCOR) and released this week, also found that Overall iPhone use increased 21 percent between June and August.

"As an additional budget item, a $200 device plus at least $70 per month for phone service seems a bit extravagant for those with lower disposable income," Jen Wu, senior analyst at comScore, said in a statement. "One actually realizes cost savings when the device is used in lieu of multiple digital devices and services, transforming the iPhone from a luxury item to a practical communication and entertainment tool."Continued...

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