iPhone Appealing To Lower Incomes

A new report has revealed that the iPhone is experiencing its greatest growth among those earning a less than median household income.

It’s official – the iPhone isn’t just a rich man’s toy. A new comScore report, All About iPhone, states that the biggest growth in demand for the device is among those who earn what’s termed less than the median household income, between $25,000 and $50,000 per year.

In that bracket, adoption of the iPhone has risen 48%, and 46% among those earning $25,000 – $75,000 per annum, meaning in those brackets the figures are more than three times those of people earning over $100,000 a year.

Report author Jen Wu, a comScore senior analyst, wrote:

“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. 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.”

In the $25,000 – $50,000 income group, the report shows a 5% growth in those accessing news and information via a mobile browser, and a rise of 7% in mobile e-mail usage and mobile music consumption.

“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,” observed Mark Donovan, senior analyst, 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.”