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Apple iPhone and AT&T: Primetime for Laggards & Late Majority ?

by User Not Found | 4月 22, 2010

The Q1 2010 results season are upon us, and Apple reported yet another stellar performance, shipping 8.8 million iPhones globally. This is the best iPhone performance the company ever had outside the fourth quarter.  Typically the iPhone sales are the strongest in during the back half of the year. The third quarter stands to benefit from product refreshes and the fourth quarter from holiday sales. The record first quarter sales is really promising, the upcoming OS 4.0 along with a likely hardware refresh this summer will boost the second half sales even further. The AT&T results the following day shed some additional light on Apple’s performance. The Apple iPhone is still the breadwinner for AT&T, even after nearly three years of launch. Check this fact: AT&T activated 2.7 million iPhones during the quarter, and one third of the activations came from new subscribers, which is higher than the total post paid net-adds reported by the carrier. The impact of the iPhone becomes more obvious if we consider the fact that this is despite the competition from a growing smartphone line-up under the AT&T portfolio, including Android, RIM , and Symbian devices. So who is buying the iPhone these days? After all, the device has been in the market for several quarters now. The early adopters and early majority are already iPhone subscribers (read youth, prosumers etc). The tail end of the demographics, which are the late majority and the laggards (typically the 55+ age group) are the next wave of opportunity for Apple and AT&T. innovation-curve.jpg Innovation Adoption Curve; Chart Source: Google The tail-end of the market is always a difficult proposition for companies as they are often hesitant to embrace new solutions, even if the product or service on offer enhances the quality of life. The word of mouth through family and friends is a major driver for smartphone adoption among seniors, and for this to occur, the product should have a large installed base and be in the market for a very long period. The iPhone in the US is at a distinct advantage in this respect as it enters its fourth year this summer - and perhaps that is already showing in the most recent AT&T results. - Bonny Joy
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