iPhone
Consumers are increasingly seeing the iPhone as a PC replacement

iPhone sales hottest among low-income consumers

Researchers detect fiscal prudence behind such apparent extravagance

Written by Iain Thomson in San Francisco

A survey by internet monitoring firm comScore has shown that the iPhone is proving most popular among low income earners, despite its high price tag.

The survey found the strongest sales growth for the iPhone came from households earning $25,000 to $49,999. Sales in this sector of the market grew 48 per cent, compared with just 16 per cent among households earning more than $100,000.

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“As an additional household budget item, a $200 device plus at least $70 per month for phone service seems a bit extravagant for those with lower disposable income,” said Jen Wu, senior analyst at comScore, the report’s author.

“However, one actually realises cost savings when the device is used in lieu of multiple digital devices and services, transforming the iPhone from a luxury item to a practical communication and entertainment tool.”

Wu suggested that consumers are increasingly using the iPhone as a computer replacement. He pointed out that the number of people earning between $25,000 and $50,000 accessing news and information via their mobile browser grew by five per cent since June, while the market overall grew by three per cent.

“These data indicate that lower-income mobile subscribers are increasingly turning to their mobile devices to access the internet, email and their music collections,” observed Mark Donovan, senior analyst at comScore.

“Smartphones, and the iPhone in particular, are appealing to a new demographic and satisfying demand for a single device for communication and entertainment, even as consumers weather the economy by cutting back on gadgets.”

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