Apple's iPhone draws more new customers to AT&T than Verizon

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  • Reply 21 of 48
    rhyderhyde Posts: 294member
    Quote:
    Originally Posted by eddieb View Post


    AT&T's numbers include ALL activations whether someone buys a new phone or not. So, for example, If you already have an AT&T account and are still under contract, you can buy a used iPhone on eBay and they will activate it for you. You might do this because you want an iPhone, or a newer iPhone, and are still under contract, so can't get subsidized pricing. That way you get a new iPhone but your contract doesn't start over. Another reason someone might do this is to tide them over until their contract runs out and they can move to Verizon.



    That type of transaction above is counted by AT&T as an activation in their numbers even though it's neither a new customer nor a new phone. Just an activation. But zero revenue to AT&T or Apple. This really distorts AT&T's numbers.



    In fact, I just did this myself even though my contract has expired. I did it because I want an iPhone 5 when they come out and couldn't wait cuz my iPhone 3G was incredibly slow. I also didn't want to commit to a vendor yet with a contract because I wanted to see how things would look on each of their networks after they both have the iPhone. Because I am more concerned about data speeds (I think AT&T is better there) vs. call quality(I think Verizon is way better there), I will probably end up staying with AT&T but that could change.



    Yeah, but how large of a percentage does the used iPhone userbase make up?
  • Reply 22 of 48
    mstonemstone Posts: 11,510member
    When the LTE is available will CDMA + LTE be able to do simultaneous voice and data?
  • Reply 23 of 48
    anonymouseanonymouse Posts: 6,860member
    Quote:
    Originally Posted by neiltc13 View Post


    Finally the USA folks will have to realise the reason Android is ahead is nothing to do with iPhone being on only one carrier for the first few years.



    People from the rest of the world (where iPhone is available on multiple carriers in many countries) have known this for a long time.



    That's partially true. Verizon and AT&T view the iPhone differently.



    AT&T is pretty much all about the iPhone these days, whether they want to be or not. (And the answer is probably, not, since carriers don't like being dependent on any single handset manufacturer) They'll try to steer customers to cheaper (to AT&T) phones when possible, but AT&T has more or less become the iPhone carrier, and that's what people want from them.



    Verizon on the other hand, I think, views the iPhone as a means of stopping subscribers leaving for AT&T because they weren't offering it. They much prefer pushing people into lower cost (to Verizon) Android phones from a variety of manufacturers to maximize their per subscriber profit and minimize their dependence on any single manufacturer. AT&T might do this if they could, but the iPhone has become so iconic for them that it's more difficult. But, you can pretty much put money on the fact that Verizon has instructed its sales staff to steer customers to less expensive (to Verizon) phones when possible.



    So, the, "reason Android is ahead," has more to do with the business practices and goals of carriers, particularly Verizon, than anything else.
  • Reply 24 of 48
    nagrommenagromme Posts: 2,834member
    AT&T customers have complained about dropped calls in specific areas. The issue is not universal. I don’t live in a big coastal city, which have the worst AT&T reputations it seems.



    I get reliable coverage, but I still despise AT&T, mainly for their consistently appalling customer service. But my sister hates Verizon for the same reason, and I’m not going to switch for that alone—not if it means giving up speed and simultaneous data. (Which is great, despite AT&T’s stupid ads that fail to show its real uses. Like looking up movie/restaurant/event details for discussion with the other person. The ads all show the user looking up something online in secret! The more useful purpose is to SHARE something with the other person. I do that constantly.)



    Now when I buy my iPhone 6, things will be different, and I may jump to Verizon!
  • Reply 25 of 48
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by anonymouse View Post


    That's partially true. Verizon and AT&T view the iPhone differently.



    AT&T is pretty much all about the iPhone these days, whether they want to be or not. (And the answer is probably, not, since carriers don't like being dependent on any single handset manufacturer) They'll try to steer customers to cheaper (to AT&T) phones when possible, but AT&T has more or less become the iPhone carrier, and that's what people want from them.



    Verizon on the other hand, I think, views the iPhone as a means of stopping subscribers leaving for AT&T because they weren't offering it. They much prefer pushing people into lower cost (to Verizon) Android phones from a variety of manufacturers to maximize their per subscriber profit and minimize their dependence on any single manufacturer. AT&T might do this if they could, but the iPhone has become so iconic for them that it's more difficult. But, you can pretty much put money on the fact that Verizon has instructed its sales staff to steer customers to less expensive (to Verizon) phones when possible.



    So, the, "reason Android is ahead," has more to do with the business practices and goals of carriers, particularly Verizon, than anything else.



    2011 is the first year of a decent android phone on AT&T as well. the atrix and the inspire came out early in the year and have done OK.



    verizon on the other hand has something like 3 Droid brand phones coming out this year. one in a few days and the other 2 later this year.
  • Reply 26 of 48
    Quote:
    Originally Posted by noexpectations View Post


    The bigger question is, after 3.5 years of built-up iPhone demand, why didn't they get more? in 1Q11, AT&T still sold more iPhones than Verizon. Keep in mind that Verizon announced the iPhone on Jan 11th (and one can argue that this was common knowledge back in 4Q10), so they did have almost 2.5 out of 3 months in 1Q to steal away AT&T customers. The published churn rates showed that very few AT&T customers left.



    I truly believe that smart phones are devices that require/crave speed and multitasking. CDMA (Verizon) just can't offer that.



    Actually the network has no issues, so the article misspoke here. It's the hardware that doesn't support it. SVDO chips (such as in the new HTC Thunderbolt) support both voice and data simultaneously. See this article:



    http://www.evdoinfo.com/content/view/2861/64/



    I've personally tested this on my Thunderbolt and it works fine in a pure 3G area.
  • Reply 27 of 48
    wigginwiggin Posts: 2,265member
    As others have stated, this entire article is a mess, doing little more than spewing forth numbers that have little to do with each other.



    Quote:

    "The launch of the iPhone on Verizon brought fewer than 500,000 new customers to the carrier in less than two months of availability in the first quarter of calendar 2011, according to Reuters. But on rival network AT&T, more than 800,000 new customers joined because of the iPhone."



    Failure: Didn't point out that the ATT numbes were for 3 months, not the less than 2 for the Verizon numbers. Especially when you consider that the Verizon iPhone was only at first available to existing Verizon customers.



    Quote:

    "Verizon topped AT&T in terms of total net subscriber gain, adding 906,000 new customers. AT&T, meanwhile, only added 62,000 net subscribers during the same three-month period."



    Failure: Is it 906k "new" subscribers or 906k "net gain" subscribers? That's two very different things. In fact, the extermely low net gain by ATT combined with it's high iPhone activation count suggests a few possibilitites: 1) ATT has a very, very high churn rate of customers, always a bad thing, and/or 2) most of ATTs iPhone activations were existing ATT iPhone users, which means that for many of ATTs iPhone "activations" they also had an iPhone "deactivation."



    Quote:

    "AT&T, meanwhile, activated a record 3.6 million iPhones in the March quarter, an increase of 33 percent from 2010. Those numbers suggested that AT&T was largely unaffected by the launch of the Verizon iPhone"



    Failure: Unless you are going to compare that 33% to the overall iPhone growth, you can draw no conclusions. If overall growth was much higher than 33%, that would suggest that ATT was in fact affected by the launch of the iPhone on Verizon. Also, as noted above, what percentage of those 3.6 million ATT iPhone activations were associated with an iPhone "deactivation" as existing iPhone users upgraded? We know how many of the Verizon iPhone activations related to a Verizon iPhone deactivation...0%. Tell me the total net increase of iPhones for each carrier. I'm betting that ATTs would be far lower than 3.6 million. It might even be lower than Verizon's 2.2 million that it sold in less than 2 months.



    Quote:

    "The data could also contrast polls that suggested a significant number of AT&T iPhone customers planned to switch to Verizon. A poll conducted late last year found that 26 percent of AT&T iPhone customers said they would switch to the rival network."



    Failure: Verizon had the iPhone for less than two months, and for the first week or so it wasn't available to people who weren't already Verizon customers. So ATT users only had about a 1.5 month window of opportunity to switch. Combined with the fact that the standard ATT contract is for two years, that means that only 6% of the ATT customers who wanted to switch could actually do so during that 1.5 month window without incuring an early termination fee (and it's probably much less than 6% if you look at the seasonality of iPhone sales, the bulk of the two-year contracts will expire during the summer and holiday seasons since that's when the bulk of the activations take place).



    All-in-all, this article tells us absolutely nothing.
  • Reply 28 of 48
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by jukes View Post


    One word: iPhone5. Why switch for an iPhone4? And those of us already-Verizon people figure we can hold out for a couple more months since we've already waited three years.



    So AT&T beat Verizon because Verizon?s customers are more likely to hold out for the next model?



    Despite the iPhone being more than a half a year old Apple sold more iPhones than the previous quarter and has done so for the past 3 years. Meaning, people who want an iPhone want an iPhone and don?t necessarily have to be first in line for the latest model.
  • Reply 29 of 48
    gatorguygatorguy Posts: 24,213member
    Could not agree more with your reasoning.



    Most buyers have no idea when or if a new iPhone is on the way IMO. Same with Android phones. You go in planning a phone purchase, perhaps not even a smartphone. You leave with whatever caught your eye and the salesman's interest in selling you at that moment. AI forum members are absolutely not your typical buyer.
  • Reply 30 of 48
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Wiggin View Post


    Failure: Didn't point out that the ATT numbers were for 3 months, not the less than 2 for the Verizon numbers. Especially when you consider that the Verizon iPhone was only at first available to existing Verizon customers.



    I don?t see how this makes a lick of difference.The mid quarter release affects it, but not to the extent that people are now claiming in lieu of the fact AT&T beat Verizon. It?s not like numbers 1 through 90 were drawn from a hate and if you pulled below number 50 you had to wait until the following quarter to purchase.



    This was highly rumoured for months before the launch with enough support that major newspapers noted it. This was made officially on January 11th. Verizon has over 100 million customers who I have heard for years are wealthier and waiting for the iPhone to come. This was sold for over 50 days on Verizon?s network with little to no lines to speak of despite the rampant and will crush AT&T into particulate matter as soon as it arrives.
  • Reply 31 of 48
    Quote:
    Originally Posted by neiltc13 View Post


    People from the rest of the world (where iPhone is available on multiple carriers in many countries) have known this for a long time.



    While Apple may want to increase its marketshare, it is not the main focus of the company, especially with the extenuating circumstances. The focus of Apple is profitability.



    So far, it has the lions share of the profit. Let the Androids, and the other OS share the crumbs.



    Apple
  • Reply 32 of 48
    wigginwiggin Posts: 2,265member
    Quote:
    Originally Posted by solipsism View Post


    I don?t see how this makes a lick of difference.The mid quarter release affects it, but not to the extent that people are now claiming in lieu of the fact AT&T beat Verizon. It?s not like numbers 1 through 90 were drawn from a hate and if you pulled below number 50 you had to wait until the following quarter to purchase.



    This was highly rumoured for months before the launch with enough support that major newspapers noted it. This was made officially on January 11th. Verizon has over 100 million customers who I have heard for years are wealthier and waiting for the iPhone to come. This was sold for over 50 days on Verizon?s network with little to no lines to speak of despite the rampant and will crush AT&T into particulate matter as soon as it arrives.



    It makes a difference because, despite what many here seem to think, there are many things going on in the world and many other things to do other than go stand in line outside of an Apple Store to buy the latest Apple device. Most people have other, better things to do. Their lives don't revolve around Apple, and they will get an iPhone, if they want one, when they get around to it. In other words, the people who were so desperate to get an iPhone, the ones who would go stand in lines to get one as soon as it was released, already have an ATT iPhone. For the rest of us, we've waited this long...so what's the rush?



    As for all the claims of "rampant" and crushing demand, etc, since when have you given any serious weight to what analysts, professional or otherwise, have to say.



    I'm not saying Verizon beat ATT, just that we can't conclude that ATT beat Verizon, as you state. Let's come back after the end of the current quarter, and we'll see how things stand.
  • Reply 33 of 48
    mytdavemytdave Posts: 447member
    The headline "about 22 percent of customers who bought the iPhone on Verizon last quarter switched from another carrier, while about 23 percent of AT&T iPhone buyers were new to that company" doesn't make any sense...



    If 22 percent of Verizon iPhone buyers came from other carriers, then they are "new" to Verizon. If 23 percent of ATT iPhone buyers were "new" to ATT, then where did they come from? Oh, that's right, other carriers. It's the same thing!!



    Now, could it be possible that all 23 percent of these "new" ATT customers could be people who have never before owned a cell phone and they are buying a relatively expensive smart phone for the 1st time in their lives?... yea, I didn't think so.



  • Reply 34 of 48
    shobizshobiz Posts: 207member
    Quote:
    Originally Posted by eddieb View Post


    AT&T's numbers include ALL activations whether someone buys a new phone or not. So, for example, If you already have an AT&T account and are still under contract, you can buy a used iPhone on eBay and they will activate it for you. You might do this because you want an iPhone, or a newer iPhone, and are still under contract, so can't get subsidized pricing. That way you get a new iPhone but your contract doesn't start over. Another reason someone might do this is to tide them over until their contract runs out and they can move to Verizon.



    That type of transaction above is counted by AT&T as an activation in their numbers even though it's neither a new customer nor a new phone. Just an activation. But zero revenue to AT&T or Apple. This really distorts AT&T's numbers.



    In fact, I just did this myself even though my contract has expired. I did it because I want an iPhone 5 when they come out and couldn't wait cuz my iPhone 3G was incredibly slow. I also didn't want to commit to a vendor yet with a contract because I wanted to see how things would look on each of their networks after they both have the iPhone. Because I am more concerned about data speeds (I think AT&T is better there) vs. call quality(I think Verizon is way better there), I will probably end up staying with AT&T but that could change.



    Couldn't the same be said of Verizon...
  • Reply 35 of 48
    hill60hill60 Posts: 6,992member
    Quote:
    Originally Posted by al_bundy View Post


    verizon also has the Droid phones while AT&T doesn't have any well known android phones. even though they are the same hardware. and the Thunderbolt just hit Verizon as well



    I thought the Samsung Galaxy S variants were quite well known Android phones which AT&T sold.
  • Reply 36 of 48
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by mstone View Post


    When the LTE is available will CDMA + LTE be able to do simultaneous voice and data?



    Yes and LTE is already widely available
  • Reply 37 of 48
    jukesjukes Posts: 213member
    Quote:
    Originally Posted by solipsism View Post


    So AT&T beat Verizon because Verizon?s customers are more likely to hold out for the next model? :???



    precisely
  • Reply 38 of 48
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by jukes View Post


    precisely



    Which implies that AT&T customers, who had the ability to buy the new iPhone 4 since last June, having been holding off for half a year just to buy it in 2011. That doesn?t make a lick of sense.
  • Reply 39 of 48
    radjinradjin Posts: 165member
    Quote:
    Originally Posted by al_bundy View Post


    verizon also has the Droid phones while AT&T doesn't have any well known android phones. even though they are the same hardware. and the Thunderbolt just hit Verizon as well



    Not really an issue as droid usually does not.
  • Reply 40 of 48
    radjinradjin Posts: 165member
    Quote:
    Originally Posted by Prof. Peabody View Post


    I don't think the numbers say what the author thinks they do. 23% vs. 22% is basically a wash.



    All the other numbers quoted (of actual subscribers, sales, prices, etc.) are meaningless because they aren't corrected for market size, network reach or the current subscriber figures for each company which must of course be different.



    The only real measure would be the percentage of new users relative to each individual company's current numbers for users. If that's the percentages quoted above, then it's a wash and not a story at all.



    Ah but it is. Everyone said 1/4 of the AT&T iPhone customers would switch to Verizon. Didn't happen.
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