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Home - The usual (iPhone-buying) suspects: Apple acolytes, trendsetters, young men
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The usual (iPhone-buying) suspects: Apple acolytes, trendsetters, young men

by jscarbo June 9, 2007
written by jscarbo June 9, 2007 Share
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When civil unrest threatens the established order in Casablanca-at least in the famous movie of the same name-one of the authorities gives the order to “round up the usual suspects.”
So may it go with those lining up June 29 and thereafter to buy the iPhone from Apple Inc.
Findings from Solutions Research Group on those “definitely” interested in buying an iPhone at $500 provides at least a cardboard cutout of the usual suspects.
They are predominantly male (72%), 31 years old on average and with an average household income of more than $75,000. Nearly half hail from New York or California and already own an iPod.
You’ve seen them on the freeway, in airports, on the streets and in coffee shops. (No statistics were available from SRG on the percentage of them wearing smug expressions.)
A more nuanced view, with the “usual suspects” fleshed out into several subgroups, is offered by analyst Avi Greengart of Current Analysis. (See Greengart’s full column in RCR Wireless News’ Analyst Angle at rcrnews.com/analyst.)
Who’s buying?
Greengart suggested that three basic groups will pony up the $500 or $600 necessary for the 4 GB and 8 GB iPhone models, respectively: “the Apple faithful,” those wanting “the latest ‘it’ thing” and a portion of mainstream consumers, particularly the baby boomers. (Talk about the usual suspects.)
So what’s motivating these subgroups?
“Apple fans are no small, fringe group of zealots,” Greengart said.
This group has helped propel Apple’s sale of 100 million iPods, despite the relatively small slice of the PC market-3% to 4%-claimed by Mac buyers, according to the analyst.
As for people who want the latest “it”: “Cost is no object to this group,” Greengart said. “Analysis almost always ignores how large a market segment this has become.”
The most critical indicator that a large pool of deep pockets is waiting to be tapped:
“Before Motorola devalued its fashion icon,” according to the analyst, “it sold 5 million Razr V3s over the first 9 months of availability under nearly identical terms as the iPhone: a $499 price point and exclusive availability at Cingular.”
And as for the oft-cited Baby Boomers, en route to their dotage? Greengart’s point of departure may offer a rude awakening for industry players.
“There are a lot of people who just hate, hate, hate their phones,” he said. “They’re looking for simplicity, but won’t purchase a product that makes them feel stupid.”
The simple, logical progression of handset tasks promised by early demos of the iPhone may be a hit with cash-laden Boomers-a big “if” that Greengart acknowledged may be controversial. The device must deliver on its promises, he cautioned. “As my mother-in-law reminded me last night, anything that brings the industry’s focus on making phones easier to use is a good thing,” he said.

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