iPhone seen as still too expensive, losing steam in fall

AppleInsider writes:

" A new report warns that halving the iPhone's price this summer still wasn't enough to truly grow sales -- and that recent metrics may show an actual shrink in sales during the early fall.

Morgan Stanley analyst Katy Huberty points to a study of prospective iPhone buyers that shows about 46 percent of them believing the handset to be too expensive, even at its $199 entry point.

Few actually object to the phone itself; only 11 percent disliked either the design or the feature set, the researcher says. About 31 percent objected to the iPhone's continued exclusivity with AT&T, which prevents subscribers to Verizon or other carriers from switching without added costs.

Huberty also takes care to dismantle notions that the resistance necessarily has its roots in preconceptions of Apple, noting that only 15 percent of the same overall group thinks Macs are overpriced.

The percentage of those showing very strong interest in buying an iPhone has also dropped significantly over time. Where as many as 7 percent of would-be buyers were very interested in the phone in February 2007 -- four months before the original phone and many of its final details were released -- 5 percent now show that same level of interest today."

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