Apple Poor at Converting iPhone Queries into iPhone Sales

Nielsen Mobile has estimated that there are 3.6 million mobile subscribers 13+ actively using the Apple iPhone, as of October 2008. While some sources suggest that the iPhone has overtaken Motorola’s RAZR in sales, their analysis of Q3 acquisitions shows a very close race at the top. Among those subscribers who acquired their phone in the past three months, iPhone had a 3% market share in Q3 2008, behind the Motorola RAZR V3 series which still had a 5% share of recently acquired devices.

Looking more broadly at iPhone’s mass appeal, their analysis shows that 11% of those purchasing a new mobile phone between January and September of this year considered purchasing an iPhone. Did they go for it? 21% of those who considered purchasing the iPhone during that period converted to acquisition.

Comparing Apple to other leading brands, 21% is a relatively low conversion rate (those with HTC in their consideration set converted at 69% and those with Motorola converted at 49%, for example). ­As of Q3 2008, Apple was the 7th most cited brand considered, but 12th in terms of conversion. Nelson analysts believe this reflects the high degree of awareness and buzz around the iPhone, but AT&T’s exclusive carriage of the device.

Among owners, Apple can today boast the highest overall satisfaction rate of any handset manufacturer. In Q3 2008, 89% of recent iPhone acquirers (past 6 months) were highly satisfied with their device – compared to an industry average of 71%. While brand affinity and style play a part here, data further below will demonstrate the high degree to which iPhone users are making the most out of their device.

The expansion of the iPhone universe will continue. As of Q3 2008, one in five subscribers (21%) who intend to upgrade their device in the next 12 months say they’ll consider purchasing an iPhone next – up from just 15% a year prior. That’s in part due to a heavy ongoing advertising spend from both Apple and AT&T to promote their wunderkind: Nielsen estimates that AT&T spent $21M across TV, Print, Radio and Internet to promote devices in September. For their part, Apple spent $15M themselves to promote the iPhone.

As for the basics:

Demographics

• Adults 35-54 make up the largest portion of iPhone users (34%)Hispanic subscribers make up a larger portion of the iPhone audience (21%) than of the total U.S. subscriber audience (13%)
• iPhone subscribers are twice as likely as total subs to have a household income of $100K+ (44% vs. 22%)

Usergraphics

• 98% of iPhone subscribers use at least one data service (yet it’s still notable that 2% of iPhone subscribers only making phone calls with their device)13% of iPhone users have their employer footing the bill (compared to 7% of all subscribers)
• 43% of iPhone users have a monthly bill of more than $100 (compared to 20% of all subscribers).

Data Usage

• 70% of iPhone users listen to audio tracks on their phone (39% download music directly to the device)66% of iPhone users download software and applications
• 35% of iPhone users watch video on their phones (making them seven times as likely as the typical mobile subscriber to do so)

Resource - cellular-news