Thursday, November 27, 2008

iPhone: The Common Man's Internet Device?Who needs a PC?

Continued...
The comScore report also aligns with a recent IBM study on how smartphones are now competing successfully with PCs for the position of consumers' chief Internet devices.

comScore said the increasing customer base among lower-income users is due to the iPhone price drop, when went into effect with the launch of the 3G model.

The iPhone 3G sells for $199 plus a two-year contract of monthly fees. At the time of its debut in 2007, the iPhone sold at a much higher price point -- $499 for a 4GB handset and $599 for an 8GB handset, both of which included a partial discount from AT&T for signing a contract.

comScore also uncovered some differences in how iPhone owners use their devices, compared to users of other smartphones. According to comScore, iPhone users earning between $25,000 and $50,000 are accessing using the Web more than ever -- an increase of 5 percent since June. During the same time, Internet activity for the entire smartphone market only grew about 3 percent, according to the firm.

Additionally, comScore found that 82 percent of iPhone users use e-mail, compared to 15 percent for the overall smartphone industry. Likewise, 85 percent of iPhone users go online for news, travel and shopping information, versus 15.9 percent of all smartphone owners.

"This data indicates that lower-income mobile subscribers are increasingly turning to their mobile devices to access the Internet, e-mail and music collections," Mark Donovan, an analyst at comScore, said in a statement.

"Smartphones, and the iPhone in particular, are appealing to a new demographic and satisfying demand for a single device for communication and entertainment, even as consumers weather the economy by cutting back on gadgets."End.

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