Here’s a shocking revelation for everyone out there, people do not want to spend $500 or $600 on an electronic device, no matter how cool or hip it may be. Evidence of this can even be seen from Sony with the launch of the PlayStation 3. Even as hip and cool as it was the $599 price tag drew many people away.

Will Apple suffer the same fate and fall to cheaper solutions and clones which are sure to follow in a highly competitive cell phone market?

An online market research firm by the name of Compete ran a survey of 379 people in the United States. The survey was to find out just how interested people were in the iPhone and if they wanted to shell out the cash for one once it releases in June.

In the results of the survey 26% of those who responded and stated that they were likely to buy an iPhone, also stated that the majority were not ready to take out a loan just to buy one. Only 1% stated that they would pay $500 for the iPhone.

This is not even taking into consideration any extra features or the higher-end iPhone which will retail for $600. If only 1% are willing to pay $500 for an iPhone it should be ridiculous and quite scary to see how low the number is for those willing to pay $600.

One positive thing for the future with Apple is that 42% stated that they would buy the iPhone if it cost between $200 and $299.

To put this survey and its results into common terms what this is basically stating is that unless Apple does not lower the price of the iPhone or until they lower the price of the iPhone, it will be a complete flop and an electronic device that only the smallest percent owns.

It is likely that the iPhone will be the cool hip tech toy that everyone wants to have, but wanting and actually going out and purchasing are completely different things. For Apple to truly get into the mass market of cell phones the same way it did with the mp3 players and the iPod they need to put the price point at a competitive level.

According to this survey that competitive level is around $200 to $299 which could be a ways off unless Apple makes some fast and drastic price cuts. Man would I be pissed if I shelled out $600 for an iPhone in June only to see it drop to $299 by November for the holidays.