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Apple iPhone and Other Smartphones Gain Traction with Lower-Income Users

6:10 am on November 17, 2008 | Category: Business, Cell Phones, Mobile Devices, PDAs

Although still popular among high-income consumers, Apple’s iPhone device is beginning to make inroads with lower-middle-income users as well, according to a recent comScore report.

Since June 2008, U.S. iPhone sales among those earning $25,000 to $50,000 increased by 48%, more than triple the growth rate among those earning $100,000+. Overall, iPhone penetration has increased by 21% since June.

“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,” commented comScore analyst and report author, Jen Wu. “However, 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.”

comScore also analyzed the wider smartphone market, and determined that the number of lower-middle-income consumers using a smartphone to check their email increased 7% between June and August. Mobile news and music consumption, meanwhile, each grew by 5% among these users.

“These data indicate that lower-income mobile subscribers are increasingly turning to their mobile devices to access the Internet, e-mail and their music collections,” said Mark Donovan, another comScore analyst. “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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