Thursday, October 30, 2008

iPhone Penetration Broadening Sharply

The trend can't be identified with any precision yet, but some end users might be adopting a new form of "substitutional" behavior of the sort mobility seems to be causing to wired phone lines.

Since June 2008 3G iPhone use rose 48 percent among those earning between $25,000 and $50,000 per year and by 46 percent among those earning between $25,000 and $75,000.

These growth rates are three times that of those earning more than $100,000 per year, the original "early adopter" population.

The reason it is not clear whether a new trend is emerging or not is that some of these users, perhaps most, are buying $200 subsidized phones, which puts the devices into a range many might be able and willing to pay for some other sort of smart phone.

And while the cost of a stand-alone, single-device and single-user account might be fairly hefty for users in the fast-growing income ranges, it is conceivable that many are on family or group plans of some sort that do not represent new monthly charges as much as $70 a month.

Still, there is a suggestion here that some users might be choosing to use use a single device for a music player, email device, voice and Internet access platform, possibly cannibalizing some amount of broadband access and wireline voice service in the process.

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