Brain whispers ‘iPhone,’ wallet says ‘free clamshell’ : Most-researched phones range from dream to reality

Two sources that track American consumers’ online research into handsets paint a dual portrait of yearning and practicality this holiday season.
While the data differs between the two sources in some respects, common themes arise. There’s good news generally for AT&T Mobility and Apple Inc., an important question for Motorola Inc. and, possibly, broader implications for the middle-class consumer and productivity devices.
Both Compete Inc., which tracks consumer behavior in the online shopping environment, and MyRatePlan.com, which attracts bargain-hunting, comparison shoppers, found that AT&T Mobility and its partner, Apple, led consumer interest with the iPhone. In Compete’s case, the iPhone drew 18% of all online researchers, three times the next candidate. Sales of the iPhone, as we know from other sources, have been robust but nowhere near the level of interest. (Converting that widespread interest into sales, no doubt, fueled Apple’s price cut to $400 from $600 soon after launch.)
Motorola, apparently, is stuck between a rock and a hard place: consumer interest in its flagship Razr2-available at all four top-tier carriers-is widespread in aggregate, though modest at each individual carrier, according to Compete’s data. Over at MyRatePlan.com, two advanced models of the original Razr-the Razr V3xx at AT&T Mobility and the Razr V3m at Verizon Wireless and Alltel Corp.-are among the top-five most researched handsets. Purchase of the Razr V3xx with two-year contract results in an actual $50 credit to the purchaser, while the Razr V3m is free.
The obvious hurdle for Motorola is to promote the differences of its latest, the Razr2, and extol the value proposition of paying $200 to $300 for the latest model. The question-“a big question,” according to Compete’s Miro Kazakoff-is whether Motorola’s recent improvements in “conversion,” translating interest into sales, will apply to the Razr2 and improve the vendor’s sagging fortunes.
The top five most-researched handsets on Compete’s list include Samsung Electronics Co. Ltd.’s t629, a free slider from T-Mobile USA Inc., Danger’s $50 Sidekick model at T-Mobile USA and Sony Ericsson’s z310a, a free clamshell at AT&T Mobility.
When targeted promotions for free handsets are winnowed from the mix, however, “big screens and unique designs look to be capturing the public’s imagination,” Kazakoff said. That means a lot of interest in the iPhone and Sidekick, plus attention paid to HTC Corp.’s Tilt and Mogul models, as well as Samsung’s Juke, the analyst said.
That represents a slight shift from last year’s holiday season, when Research In Motion Ltd.’s Pearl and Samsung’s BlackJack-both smartphones with multimedia-drew strong interest.
“People value entertainment, but they’re willing to pay for productivity,” said Kazakoff. “Balancing the demands of a family” appeared to be a factor.
In fact, the BlackBerry Pearl from RIM places fourth on MyRatePlan.com’s most-researched handsets, according to Allan Keiter, president of the online retail channel. The Pearl at AT&T Mobility and T-Mobile USA is priced at $150. A new CDMA version for Verizon Wireless is also priced at $150.
Keiter said that consumers going online tend to be comparison-shopping bargain hunters-MyRatePlan.com offers the full range of carrier plans and portfolios, enabling apples-to-oranges comparisons-but that the channel is picking up as Americans enter the replacement cycle and tend to be more comfortable in the virtual retail environment. And, as that replacement cycle pushes consumers towards more-featured handsets, smartphone prices and data-plan prices have come down to meet that interest. He did not hesitate to dub 2007 the “year of the smartphone.”
Keiter has seen “pretty limited” consumer interest in the Razr2.
“I’m not sure which party is responsible-Motorola or the carriers-but someone has to explain to consumers why the Razr2 is better than the original,” Keiter said. “To me, it’s got a larger display and improved camera resolution.”