Study: iPhone price cut eliminates barrier to adoption

One in five U.S. mobile subscribers say they want to purchase an iPhone but have not yet done so, citing data plan pricing and operator exclusivity as key obstacles, according to a new consumer study issued by market research firm NPD Group. Twenty-one percent of subscribers indicate they would purchase an iPhone but do not wish to change carriers, NPD Group reports--an additional 18 percent point to the expense of current data plans for halting their iPhone buy. "Many potential iPhone buyers are looking past lower device prices to recognize the greater expense of a two-year monthly data plan commitment," said NPD director of industry analysis Ross Rubin in a prepared statement. "Furthermore, customers of other carriers, particularly Verizon Wireless, are unwilling to make the perceived compromises that might come with switching to AT&T."

But Apple's recent decision to slash iPhone prices [1] in conjunction with the release of the new iPhone 3G S promises to remove a key barrier to adoption, NPD Group notes. Although 55 percent of consumers who express no interest in purchasing an iPhone cite "lack of interest," 42 percent blame the smartphone's high price. "The iPhone 3G's original price of $199 set a smartphone benchmark," Rubin said. "Halving that price to $99, while adding more features, should significantly expand the market for Apple's smartphone."

For more on the NPD Group study:
- read this release [2]

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