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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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People on websites like Anandtech don't get it...
By Rainman on 6/18/2007 10:41:37 AM , Rating: 2
The iPhone isn't aimed at people who browse websites like Anandtech. One of the reasons is b/c we're in the minority. Products aimed at this demographic don't make wads of cash b/c there aren't enough techies out there.

Plus techies tend to be very opinionated about technology. it's hard to make something that appeals broadly. The avg consumer is much less discriminating.

As for the price, there are a endless number of products out there where you can get the basic version very inexpensively but the high end version costs several tens if not hundreds of time more.

For instance, why aren't you all wearing 10 dollar Casios that are more accurate than 3000 dollar Rolexes? Last time I checked, nobody was criticized for having a nice watch despite the fact that a 10 dollar version will do a better job at keeping time.




By darkpaw on 6/18/2007 11:16:44 AM , Rating: 1
quote:
For instance, why aren't you all wearing 10 dollar Casios that are more accurate than 3000 dollar Rolexes? Last time I checked, nobody was criticized for having a nice watch despite the fact that a 10 dollar version will do a better job at keeping time.


Actually, whenever I see anyone with a $1k+ watch I immediately think moron with more money then sense.


By audiophi1e on 6/18/2007 12:49:22 PM , Rating: 3
...until you realize many Rolexes actually appreciate in value with time--something no Casio or Fossil watch will do.

Would I personally ever shell out $5000 for a watch? No, but I own a Rolex as a result of a wedding gift and it made me realize just how valuable and nice these things are. It also made me think of my in-laws in a totally different light.


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