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iPhone Will Cross the User Adoption Chasm

The Apple iPhone may find strong demand among early-adopter technophiles, but building a larger market may be difficult initially, according to a new white paper entitled "The iPhone: A Consumer Perspective." from Parks Associates.

The document includes primary consumer data from their market study entitled "Mobile Entertainment Platforms & Services (Second Edition)," a 2007 survey of 2,000 U.S. Internet users. The survey finds only 3 percent of these consumers have a strong interest in purchasing the iPhone at its $499.99 price point, combined with a new two-year mobile service contract.

"The underlying drivers for converging music, multimedia, and communications capabilities in a device such as an iPhone are certainly prevalent in today's market," said Kurt Scherf, vice president and principal analyst with Parks Associates. "However, the high price point may prevent the iPhone from achieving greater adoption over the short term. It may be an early-adopter product that appeals to technophiles but initially leaves other interested users on the outside looking in."

The white paper concludes with comments from Parks Associates' analysts on the strengths and weaknesses of the iPhone. Among the analyses are insights into the likely response from corporate users, the potential boost to AT&T, and the expansion of Apple's "three-screen" entertainment strategy.

"The iPhone: A Consumer Perspective" is a free white paper available for download. I'm wondering, perhaps the issue needs to be restated -- it's not if the Apple iPhone will cross over the chasm to mainstream user adoption, it's when it will do so and under what circumstances.

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