iPhone is the main source behind the growth of AT&T subscribers – statement reconfirmed

Over the last two years, the growing importance of iPhone in helping AT&T increase its subscriber base is clearly visible from its quarterly results. Nearly 2/5 of iPhone subscribers, who also contribute to higher revenues, have been initiated to AT&T through iPhone. Market researches indicate that the criticality of the iPhone exclusivity is much higher than AT&T would like to admit.


A recent survey conducted by ChangeWave, a market research firm, conformed to this indication. When questioned about switching mobile carriers, among the segment considering a switch, an impressive one-third showed willingness to move to AT&T in the next six months. That is the highest peak in the graph since ChangeWave started tracking these results.


Interestingly, the historical data also reveals a couple of other distinct trends. In January 2007, when Apple and AT&T announced the concept of original iPhone, willingness to switch to AT&T rose above 20 percent for the first time. With the actual launch in June 2007, it peaked to 30 percent, and then reached a new high of 32 percent in July 2008, when the iPhone 3G was introduced. With Apple announcing the iPhone firmware version 3.0 due to be released in mid 2009, the graph is likely to reach a whopping 33 percent, as per the most recent survey by ChangeWave.


Verizon was the popular other option to the segment of potential mobile carrier switchers. With a higher customer satisfaction level and fewer dropped calls than AT&T, apart from having its own high-end exclusive phones such as the Blackberry Storm, it was clearly rated a winner. But ever since the iPhone was introduced, AT&T has managed to clear a safe distance between itself and its closest competitor.


Not surprisingly, AT&T is believed to be negotiating with Apple to extend its current exclusivity deal for iPhone, which is set to expire in 2010, to at least 2011. Further rumors of the iPhone becoming available on Verizon as early as next year, is also doing the rounds. But both Verizon and Apple claim that such a move isn’t likely until Verizon rolls out its 4G LTE network.


With customers willing to switch to AT&T despite complaints of the iPhone’s unavailability on other carriers’ networks, ChangeWave’s survey suggests that AT&T is likely to ride the iPhone ‘high’ for at least another year and perhaps a little longer.





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