Writing in the Apple Insider, Katie Marsal says Credit Suisse Analyst Robert Semple predicts women--specifically divorced women-- may be the iPhone's biggest surprise.
"In defending his thesis, Semple cited a "precedent" or trend in the market where consumers continue to show a willingness to "trade up" to premium products, such as the Apple iPod, Under Armour, Coach handbags and Tiffany jewelry. "At Coach, the mix of $400+ handbags has increased 100 basis points as a percentage of total sales," he explained. "And at jeweler Tiffany, 'statement' jewelry has seen average selling prices increase from $81,000 to $91,000 over the past year while less-than $500 silver products have decreased as a percent of total." Fueling the trend, according to the analyst, is the rise in discretionary wealth, the introduction of an influential female consumer, changing family structures, and evolving consumer behavior, along with encouragement from media influences to acknowledge and respond to personal needs. "Why will consumers Trade Up to the iPhone?," asked Semple. "The real value and differentiation in the iPhone lies not its sleek design (this is certainly helpful though), but rather, the innovative qualities and resulting capabilities delivered by the Mac OS X, which remains the best operating system in the PC world today in our opinion, and an OS that easily exceeds the capabilities of the scaled down OS’s that dominate the mobile phone market today."
In a few hours some people will have their iPhones and will not so nonchalantly start whipping them out on trains, busses, planes, restaurants, ball games...think of a public setting and soon they will be everywhere.
The desire to be in the wave of the first 3 million to own one helped create a new career opportunity for some -- line sitters. From Mark Lacter on Los Angeles Business by way of Cnet,
'From Santa Monica): iPhone LineSitter Wanted - Easy $. "I am looking for several people who will wait in line for me to buy the new Apple iPhone on Friday, June 29...You need to be reliable, mature, and patience will definitely be a plus! What you do while you're in line is your business, but unless you devise a foolproof strategy, you cannot leave the line." (From Cupertino): I want an iphone, but i cant skip work. "I want an iphone! but I cant skip work. I'm looking for someone willing to stand in line for me starting thursday afternoon, camp out, and trade spots with me around 4-5pm friday...It seems like the asking price for people to stand in line is 200-300 dollars (however i have seen offers for 150). but I want to make SURE that i get one, and I'm pretty much willing to pay the 200-300 extra for it...contact me and make me an offer - if i dont get any, i may have to camp out myself and just get in trouble with work :)" (From Santa Monica): "I am looking for someone who can wait in line for me to buy the new Apple iPhone on Friday, June 29 - I have to travel for work that day, or I'd be out waiting myself. Our target is the Apple Store at the Third Street Promenade in Santa Monica. The gig starts at 5am and ends at about 5pm. You need to be reliable and focused on the success bonus...Let's make this happen." This message will self-destruct in 30 seconds.'
I will not be hiring a line-sitter. I won't be standing in line. In fact, if I stick with my current wireless provider I will be iPhone-less for the next five years. It makes me weep. I want to be an early adopter.I'm the market!
But alas and alack I'm a Verizon Gal and if reports are correct, AT&T has a lock on the iPhone for the next 5 years. Five years! Verizon what in the world were you thinking?
Turns out Verizon got first shot at the iPhone but turned it down because they couldn't agree on terms. Oh my achy, breaky heart. As far as loyalty goes,I have been a tried and true Verizon customer for over 20 years. I am actually very happy with their service. But and this is a big but...I want an iPhone.-- maybe not the $600 version with virtually no Gigs but I want one sooner rather than 2012.
Will a product motivate me to switch phone providers? It could. Not this week. But I'm very tempted and depending on just how cool this gadget actually is, I may not be able to wait the entire summer.
While I would have been willing to wait a year until Verizon could carry the phone, if the rumor of the five year lock with AT&T is true,it could be my Verizon deal breaker.
Lust is a dangerous and expensive thing. Image source:
Screen shot of iPhone on Apple.com
This is cross-posted at Blogher