Lower Income Customers Turning to the iPhone As an Internet Device

2008 November 7
by Ismail Dhorat

Cellular news reports

while 43 percent of iPhone owners earn in excess of $100,000 annually, the strongest growth in users is coming from those earning less than the median household income,

iPhone adoption since June 2008 rose 48 percent among those earning between $25,000 and $50,000 per year and by 46 percent among those earning between $25,000 and $75,000. These growth rates are three times that of those earning more than $100,000 per year.”

This makes sense, you consolidate instead of owning a PC/Laptop and a broadband connection, you have a single device with access to wireless broadband. Anywhere.

However, the 3G Iphone may be within reach of ‘low’ income households in the USA, but when you look at the pricing here in South Africa it is way out of reach of the average man on the street. That’s why i still maintain, we need a low cost device with a really simple user experience  and internet browsing like the Iphone, a product like that would be a winner.

Before the under 100$ Laptop (OLPC) project, there was the under $50 mobile project

The emerging market handset programme is an initiative by the GSMA launched in 2005, the idea was to bring really cheap handsets into emerging markets. The initiative was a huge success, so why cant we get an ultra low cost internet device?  These cheaper handsets are usually limited in functionality, basic voice,sms etc.

However Nokia have recently announced a range of new low-cost handsets and services for emerging markets, including the first low cost handset that has a music player.

The first services Nokia will offer in emerging markets will focus on email, agriculture and education, which based on consumer feedback, present the strongest demand in emerging markets.

Mail on Ovi, which is enabled on Nokia Series 40 devices, offers the possibility to create an email account directly on the mobile phone without having to use a personal computer, giving millions of users the possibility to create their first internet identity and communicate in new ways. A trial of Mail on Ovi will launch in a few select markets by the end of November 2008.

Nokia Life Tools is a range of agriculture information and education services designed especially for rural and small town communities in emerging markets. These services use an icon-based, graphically rich user interface that comes complete with tables and which can display information simultaneously in two languages. Behind this, SMS is used to deliver the critical information to ensure that this service works wherever a mobile phone does, without the hassles of additional settings or the need for GPRS coverage.

The pricing on these handsets are between 25 and 90 Euro’s, with the higher end phones having all the bells and whistles. Still very much out of reach. So for lower income groups, a single device for all communications, music, and telephony seems to be key. Offer these in a single device that’s user friendly, and that’s sure to be a winner.

Popularity: 17% [?]

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