Monday, July 2, 2012

Are Consumers Buying Full Price iPhones?

BTIG Research says its random and admittedly limited channel checks suggest there is not yet any indication that large numbers of people are anxious to buy a full-price Apple iPhone, to avoid a service contract.

Of course, it does not appear that Virgin Mobile, which has begun selling such full-price iPhones, has swung serious marketing effort at the new program.

Until a full marketing push, it will be hard to assess demand. And it might not be the case that the market demand will come largely from traditional "prepaid" customers. In fact, the demand might actually turn out to be customers that in the past would have opted for a traditional postpaid plan, have the money to pay full retail, but simply want the lower month recurring charges.

So far, it is too early to conclude much of anything about the actual level of demand.

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