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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 dankim333 on 6/18/2007 10:21:33 PM , Rating: 2
I BELIEVE what he/she was trying to say was that there is an awful large load being placed on an all in one product with no ability to easily change its battery. What we don't know right now is how well it is gonna stand up to a "real world" test. i.e. 3-4 hours of wifi or 3G (oh wait, no 3G... 2.5G... whatever)surfing while playing music almost continuously through your bluetooth headphones while prank calling/ordering starbucks using google maps... Oh, and perhaps take a call every now and then. ;-) These tasks in and of itself aren't that big of a deal, except for the fact that most phones in this form factor with these capabilities have less than steller battery life. Pidgeonhole that with a nonreplaceable battery, and yeah. There is *some* reason to worry there.

No, we don't know how it's gonna fare right now because apple is very scant on information right now. It will certainly be interesting to see how it pans out. I personally think $500 for a phone is more than a fair price for this type of capability--it does a few things quite right. AAAAND more than a handful of things wrong to where i wouldn't touch it with a 10 foot pole. (i.e. no developers w/o apple scrutiny? battery? no 3G?)

It shore is purdy tho.


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