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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: The i hype...
By akugami on 6/18/2007 4:51:32 PM , Rating: 2
I completely disagree about the iPods. Their revolutionary feature wasn't marketing or hype. It was an easy to use interface and a pleasing design. The things Apple has always been good at. Apple has won numerous industry design awards for their products and the basics of their GUI is what MS copied. In the iPod the easy to use interface coupled with the scroll wheel made it years ahead of the competition in terms of having an easy to use GUI coupled with an easy to use control system. It's only been in the last few years that other companies have caught up in the ease of use department.

While Apple's marketing is always half truths, whose isn't? That's why it's called marketing. Hype up the good stuff, gloss over the bad stuff, make implications about things you can do or are good about your products without ever really saying it.

So has hype carried the iPod? Absolutely. But it was a darned good product that helped make it a successful product before hype carried it to the 100 million and beyond mark. Hype can help carry a product but I would doubt it helped the iPod until after it already became a hit.

Let's not forget that people were buying the once Mac exclusive iPod and hacking software to make it work on PC's before Apple got a bright idea and released it for both PC's and Mac. Techies helped make the iPod popular and other techies are now slamming the iPod and saying it was built exclusively on hype. Let that sink in.


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