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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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It doesn't matter...
By redbone75 on 6/18/2007 4:18:57 AM , Rating: 2
It really doesn't matter what most of us "in the know" think about the iPhone or Apple. It doesn't matter that we know there are other, less expensive phones out there that can do more tasks than the iPhone. It doesn't matter that we know that Apple overcharges (we think) for its products. It doesn't matter that we think of Apple fans as iSheep who will purchase any product Apple throws at them and says, "You will like it because we say it's cool." The only thing that matters to Apple is that the people who want this phone, yearly income notwithstanding, will buy it. Remember, in their own words, they're not targeting the "financially challenged."

I have never owned a Mac b/c I prefer PC's. I refuse to buy an iPod because I want more for my money (Creative Zen Vision: M, hello!). I have, however, always tipped my hat to Apple's marketing department. From Steve Jobs' keynote speeches to the "cool" solid-colored dancers on the iPod commercials to the cute ditty of the iPhone commercials, they know how to generate excitement about their products. We can only hope the companies we champion so much would do as much for their products. Besides, we don't know everything about the iPhone just yet. It just might have a surprise or two worthy of everyone saying "Now that is cool."




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