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- A new study reports that the strongest growth in purchases of Apple's iPhones comes from those earning less than the median household income. According to the digital-media research firm comScore, iPhone adoption since June soared 48 percent among those earning $25,000 to $50,000 annually, and by 46 percent among those earning between $25,000 to $75,000. Under $25,000, the growth rate was 16 percent. Cost Savings About 43 percent of iPhone buyers still earn more than $100,000 annually, but the growth rates for the lower earners is three times greater. Jen Wu, a senior analyst with comScore and author of the report, acknowledged that "a $200 phone with at least $70 per month for phone service seems a bit extravagant for those with lower disposable income." But, he added, "one actually realizes 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." The $25,000 to $50,000 income demographic actually declined a bit from June to August, but the number among smartphone owners and mobile-content users grew. For mobile-content use, for instance, the number of users in that demographic grew by five percent since June, beating the overall market growth of three percent. The demographic also showed seven percent growth in mobile e-mail usage, and five percent growth in mobile music consumption. Who Are These Users? It's the convergence of so many previous devices and functions into one device that can make an all-in-one device like the iPhone a good deal in spite of a price tag that looks high when seen as the price of just a cell phone. comScore senior analyst Mark Donovan noted that such mobile devices are increasingly being used to access the Net, e-mail and music collections. An iPhone also functions, of course, as a digital camera and game machine, and the growth of third-party applications means it can have dozens, if not hundreds, of additional uses. And, by the way, it's a phone. Avi Greengart, an analyst with industry research firm Current Analysis, agreed that "today's modern cell phone and PC-like devices such as the iPhone are designed to do many things." He added that he "wouldn't rule it out" that people would buy a device such as the iPhone to replace other devices, especially since it is so good at so many things, such as mobile Web browsing. But, he said, his problem is with the methodology of the comScore report, since it doesn't provide enough information about who these users are. "Are they college students?" he asked, in which case the implications might be different than, say, if most of the users were 45-year-old men with families.
