Rich Man, Poor Man: Apple iPhone Crosses The Divide

According to a recent study by mobile analysis firm comScore, lower-income mobile phone buyers are turning to Steve Jobs and Co.'s smart phone for the Internet and entertainment.

The report, which examines the demographics of Apple iPhone owners, found that the smartphone is gaining traction with users who earn less than the median household income, especially since the launch of the iPhone's cheaper 3G model in July.

The study, called "All About iPhone," notes, however, that 43 percent of iPhone owners rake in $100,000 or more annually.

ComScore said iPhone adoption since June 2008 has risen 48 percent among users earning between $25,000 and $50,000 per year and by 46 percent among those earning between $25,000 and $75,000. Those growth rates are three times that of those earning more than $100,000 per year, the study found. In addition, comScore's research found that from June to August, the number of iPhone users with a household income of less than $25,000 grew 16 percent.

Overall, according to the study, iPhone penetration has increased 21 percent.

"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," said comScore senior analyst and the report's author, Jen Wu, in a statement. "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."

While comScore found that the number of consumers in the $25,000 to $50,000 income demographic declined marginally from June to August, their ranks among smartphone owners and mobile content users grew, in some cases outpacing the average growth rate of the market. ComScore said the number of people earning between $25,000 and $50,000 who access news and information via a mobile browser grew by 5 percent since June, while the overall market grew by 3 percent. ComScore also noted a 7 percent growth in mobile e-mail usage and a 5 percent increase in mobile music consumption among users earning between $25,000 and $50,000 per year.

"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," said Mark Donovan, senior analyst, comScore, in a statement. "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."