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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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RE: I dont know....
By akugami on 6/18/2007 4:39:27 PM , Rating: 2
Well...I spent $400 on my phone and my cousin spent about $ brother has spent $1000 on a phone back in the day though nothing over $300 recently. Nokia for one does a pretty darn good business on expensive phones so I would say the market is there. Sony Ericsson, Motorola and Samsung among others have these $400 and up phones for sale.

Consumerism or not, the market is indeed there. And that is why I believe the iPhone will be successful. Couple a seemingly decent phone, especially if the battery life claims hold true, with a little hype and marketing along with Apple's currently good name in the consumer market and you have a product that is more likely to succeed than fail.

I for one am not buying it. My next phone purchase will be in another year. Probably when the iPhone 2.0 comes out.

The biggest obstacle IMHO is battery life. I want a device that can play a full length movie (2-3 hours) play audio for another 4 hours, browse the web for 1 hour and still have enough juice for an hour of talk time. All these fancy smart phones, of which I own one, with their fancy features and half of the features can't be used due to insufficient battery life.

Take Wifi on phones. Wifi on phones are a great idea but bad due to poor battery life. My phone dies in an hour of web browsing over my wifi network. I did it twice to test it out. The experience was not bad, it's just that the wifi component sucked so much power that it was not worth the effort.

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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