54 Percent of Online Consumers Don't Plan to Purchase Apple® iPhone

54 Percent of Online Consumers Don't Plan to Purchase Apple® iPhone

PriceGrabber.com’s survey reveals 41 percent deterred by high cost; new iPhone 3G may be the right price

Los Angeles , Calif. , June 19, 2008 PriceGrabber.com®, a part of Experian, explores iPhone purchasing trends and smartphone pricing history through its latest Consumer Behavior Report. Results are based on a survey of 3,066 online consumers conducted from May 20 to June 5, 2008.

The iPhone is undoubtedly the most talked-about mobile device in the market and has raised customers’ expectations of other vendors. While only 4 percent of survey respondents currently own an iPhone, 42 percent are considering purchasing one. Of the remaining 54 percent who do not intend to purchase the iPhone, 41 percent say that the mobile device costs too much and another 22 percent prefer a network carrier other than AT&T. Prior to Apple’s announcement that the new iPhone 3G will cost $199, Apple and Nokia, on average, had the highest-priced cell phones/devices, while Blackberry®, Motorola and Samsung provided prices on the low end. With Apple’s recent announcement of the lower-priced iPhone 3G, Apple may see online consumers changing their minds about purchasing an iPhone.

Apple gets corporate-friendly
As Apple attempts to appeal to enterprise users and IT departments with the iPhone 3G’s Microsoft® Exchange ActiveSync capabilities, the company is becoming more of a competitor with long-standing corporate-friendly devices like Research In Motion’s Blackberry. Of the 4 percent of respondents who currently own an iPhone, 40 percent own two devices — one device for work and the iPhone for personal use. More than half of those respondents plan to get rid of their second device because of the Apple’s new synching capabilities.

Phones with MP3 players: common but not a necessity
Of the top 20 most popular cell phones on PriceGrabber.com, 19 have MP3 player capabilities, although only 29 percent of respondents actually use the feature on their phone. Survey respondents also indicated that the MP3 player within the iPhone is one of their least favorite features. The majority of online consumers say that the fingertip navigation feature is the best feature of the iPhone, while 17 percent chose the Web browsing connection and 16 percent enjoy the integrated applications.

Hands-free driving laws increase Bluetooth and headset demands
Forty-six percent of consumers indicated that the second most important cell phone feature behind a large color display screen is Bluetooth compatibility. With 22 U.S. states enforcing cell phone driving laws, five states that have banned handsets completely and 17 others that have varied regulations, Bluetooth and hands-free headsets are becoming a required accessory with devices such as the iPhone. Of the 62 percent of respondents who indicated that they currently use or plan to purchase a hands-free headset, 33 percent said they would because of driving laws and 28 percent said they would for their own personal safety, regardless of their state’s laws.

PriceGrabber.com will continue to track online shopping trends and market shares in the coming months and will be tracking the market once the iPhone 3G is available. To view the full Consumer Behavior Report, which also includes cell phone manufacturer pricing trends, the top 20 cell phones/devices on PriceGrabber.com and more results from the iPhone trends survey, please visit http://mr.pricegrabber.com.

About PriceGrabber.com
PriceGrabber.com, part of Experian InteractiveSM, has established itself as one of the most trusted and effective online comparison shopping services, allowing approximately 26 million consumers each month to search and compare information that enables them to find the right product from the right retailer at the best price. Through continued innovation and a consistent focus on providing the best comparison shopping experience on the Internet, PriceGrabber.com provides savvy shoppers access to millions of unique products and services from thousands of retailers and sellers in 23 product channels. The company also powers comparison shopping functionality for a network of leading Internet sites, including MSN Shopping, AOL Shopping, About.com, iVillage, Comcast and CNET. The company offers comparison shopping in English (at http://www.pricegrabber.com), Spanish (at http://www.preciomania.com) and Portuguese (at http://www.precomania.com) as well as international sites in Canada and the United Kingdom.

PriceGrabber.com is headquartered in Los Angeles, Calif. PriceGrabber is a registered trademark, and PriceGrabber.com and BottomLinePrice are trademarks of PriceGrabber.com, Inc., a Delaware corporation. Other trademarks or registered trademarks are the property of their respective owners.

About Experian
Experian® is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions.

Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage.

For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.

Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 38 countries worldwide, supporting clients in more than 65 countries around the world. Continuing sales for the year ended March 31, 2008, were in excess of $4 billion.

For more information, visit the Group’s Web site at www.experiangroup.com.

Michelle Kane
1 310 954 1040, ext. 289 Telephone
mkane@pricegrabber.com Email

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