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The iPhone is helping AT&T while hurting the phone company's competition

Even though the iPhone does not launch for 11 days, the hype surrounding the latest Apple gadget continues to explode.  More than 64 percent of American users and 56 percent of British mobile phone users have at least heard of the iPhone. 

While the iPhone will be an expensive product -- priced at $499 and $599 for the 4GB and 8GB model respectively-- and users will have to sign an exclusive contract with AT&T, many consumers seem unfazed.  According to a study done by M:Metrics, almost 1 in 10 mobile phone users in the United States have "a strong interest" in purchasing an iPhone.  Of the 11,064 people polled for the study, 67 percent are subscribers of a service besides AT&T. 

Further research suggests that as many as 19 million Americans are interested in purchasing an iPhone.

"This is an early indication that AT&T's strategy to use the device to lure customers from competitors could play off," said Mark Donovan, M:Metrics senior analyst.

Analysts also expect AT&T iPhone users will spend an additional $20 per month on data service charges that average AT&T subscribers do not use.

Apple and AT&T have an exclusive agreement for at five years, meaning people wanting the iPhone will be forced to use AT&T.  Analysts expect T-Mobile and Sprint Nextel to be hurt most by the deal.

Apple plans to have up to 3 million iPhones for the scheduled launch on June 29.



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?
By Kilim on 6/18/2007 2:03:16 AM , Rating: 2
Saying The iPhone is blowing up is like saying The L Word is controversial. Just because the marketing department says so, does not make it so.




RE: ?
By cplusplus on 6/18/2007 2:37:37 AM , Rating: 2
The L Word isn't controversial? But there are girls having sex with each other! That's still controversial in some parts of the country.

But seriously, there are a lot of people who want the iPhone (and I do count myself as one of those people). Most of these people can't afford it, and some (like myself) realize that as much as they want it, it isn't worth the price. It will sell well when it is first released, there will be a trickle of sales afterwards, then in about 6 months to a year Apple will come out with the second-gen iPhone, with a cheaper price and more space.

Oh, and for those who don't remember:
http://web.archive.org/web/20011118013704/shopper....

The first generation iPod was $399 for 5GB. And look at where they are at now. So the price will come down, and the GB will come up. That is pretty much set in stone. The question is just when and how much.


RE: ?
By FITCamaro on 6/18/2007 6:54:26 AM , Rating: 4
The fact that most people can't afford it won't stop it from selling.

Most of America will gladly put the purchase on their credit card and take a year to pay it off just to have the latest crap that companies tell them they need.


RE: ?
By GoatMonkey on 6/18/2007 8:46:24 AM , Rating: 2
Of course nobody NEEDS it. Nobody NEEDS a PS3 or XBox 360 either. Those don't have much of a legitimate use at all other than entertainment, but they're still selling pretty well. You have to admit that there is an entertainment factor that goes along with the iPhone too. It's just a cool little gadget, and it does at least have some practical uses that are more useful than a Blu-ray player.


"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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