09 June 2009 | Author: J. Cave SEO Consultant

Cut-price iPhones could significantly impact online retail

The Worldwide Developer's Conference 2009 (WWDC 2009) saw Apple announcing that the original iPhone 3G will stay on the market for $99 following the release of the company's latest model.

According to Gene Munster of Piper Jaffray, the popularity of the iPhone would mean that a 50 per cent cut in its cost would multiply US sales demand twofold.

Historically, this could be the case. Last year, the iPhone dropped in price from $399 to $199, resulting in a tripling of global unit sales - from 4.7 million to 15 million units sold - including a doubling of U.S. sales.

So what does this mean for online retail? Earlier last month, Pricegrabber revealed in a survey that 58 per cent of US online consumers now own a web enabled phone. Of the 58 per cent,, 21 per cent use a smartphone, 8 per cent operate an iPhone and the remaining 29 per cent connect via another web-enabled mobile phone.

If Apple manages to double iPhone sales once again, the number of people accessing the web via their mobile phone could see a significant increase - meaning a possible boom for online retailers as mobile consumers buy online via their handsets.

According to the PriceGrabber survey, one in ten US customers owning a web-enabled mobile device have made an online purchase using their phone.

In terms of purchases, digital content and applications for the mobile phone was the most popular item, with 56 per cent of shoppers making a purchase. 51 per cent purchased consumer electronics, a staggering 37 per cent purchased computers, 36 per cent chose books and 31 per cent bought clothing.

The mobile web is a growing arena for both consumers and retailers. And, with a possible surge of iPhone users surfing the web in the near future, online retailers would do well to consider optimising their sites for mobile to make the most of the coming opportunities.

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