59% of iPhone users spend more than $100 per month on carrier bills

Posted:
in iPhone edited January 2014
iPhone users have the highest carrier bills among all smartphone platforms, with with 10 percent spending more than $200 per month with their carrier.

CIRP


The data comes from the latest research by Consumer Intelligence Research Partners, which shared the info with All Things D. A total of 59 percent of iPhone users polled between October and December of 2012 indicated they spend more than $100 per month with their carrier, compared to 55 percent of Android users, 40 percent of BlackBerry owners, and 56 percent of Windows Phone users.

None of the iPhone owners polled by CIRP spend less than $25 per month on their bill, while just 6 percent fell in the $25 to $50 range. In comparison, 14 percent of Android users were under $50, and 30 percent of BlackBerry owners had that low of a monthly bill.

In the $51 to $100 range were 36 percent of iPhone owners, with the bulk ? 49 percent ? spending between $101 and $200 per month.

Carriers pay higher subsidies for Apple's iPhone to lock users into a new two-year contract. As a result, the carriers get customers to commit to monthly plans that are costlier on average than those used by owners of competing smartphones.

Michael Levin, co-founder of CIRP, told All Things D that he believes the difference comes from the fact that "all" iPhone users are on "expensive data plans," while some Android users are un prepaid or unsubsidized plans offered by regional carriers.

Carrier subsidy costs for the iPhone became a focal point for Apple last year, when some market watchers expressed concern that carriers could balk at Apple's higher subsidies. Apple Chief Executive Tim Cook downplayed those concerns last July, noting that the total subsidy that carriers pay is "fairly small" when compared with the monthly payments that carriers collect from their subscribers.

Cook also noted that the iPhone has a lower "churn rate," a term the wireless industry uses to describe the number of customers who leave a carrier in a given time period, He also said that iPhone users are also more likely to have an iPad with a data plan, while Apple's engineering teams work closely with carrier partners in an effort to find the most efficient way of handling data.

"At the end of the day, the carriers want to provide their customers with what their customers want to buy," Cook said. "And so the most important thing for Apple by far is to continue making the best products in the world."
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Comments

  • Reply 1 of 71
    solipsismxsolipsismx Posts: 19,566member
    This has to be a US poll.
  • Reply 2 of 71
    kdarlingkdarling Posts: 1,640member


    I doubt there are millions of people who pay $200 for an "expensive data plan" all for themselves.


     


    I would suggest that the primary reason why a bill would be so high, is because it's for a family.   E.g. add in the kids who got an iPhone.

  • Reply 3 of 71

    Quote:

    Originally Posted by AppleInsider View Post







    Michael Levin, co-founder of CIRP, told All Things D that he believes the difference comes from the fact that "all" iPhone users are on "expensive data plans," while some Android users are un prepaid or unsubsidized plans offered by regional carriers.


    My 15€/mo "expensive data plan" would like to disagree, Michael.

  • Reply 4 of 71

    Quote:

    Originally Posted by KDarling View Post


    I doubt there are millions of people who pay $200 for an "expensive data plan" all for themselves.


     


    I would suggest that the primary reason why a bill would be so high, is because it's for a family.   E.g. add in the kids who got an iPhone.



    Professionals maybe? Or people who can't live without checking AppleInsider and download TS's pictures several times a day?

  • Reply 5 of 71


    Before my company picked up the tab (had to switch to Big Red from AT&T), my bill was between $134 to $136 a month with taxes.  Unlimited (read throttled after 3 gigs) data and unlimited everything else.

  • Reply 6 of 71
    jeffdmjeffdm Posts: 12,946member
    solipsismx wrote: »
    This has to be a US poll.

    I certainly would like to see figures for other countries, though I'm not surprised it's US-only.

    kdarling wrote: »
    I would suggest that t<span style="font-size:13px;line-height:1.231;">he primary reason why a bill would be so high, is because it's for a family.   E.g. add in the kids who wanted an iPhone.</span>

    It looks relatively platform agnostic. 59% iPhone vs. 53% with Android.

    I didn't notice any mention in either article on multi-line / family plans, which should have been an obvious question to the writer at All Things D. The only way to get the full paper is to buy a copy, which is out of the question as far as I'm concerned.
  • Reply 7 of 71



    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
    We have Verizon iPhone service and Verizon FiOS Internet, TV, Landline.


     


    If you priced our home service based on their cellular plan, FiOS would cost us over three grand a month.


     


    Currently, our 90+Mbps FiOS bill is about 25% less than our two iPhone plan.


     


    When will the mobile data bubble burst? They have our you know what's in a vice.


     


     


     


    #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }

     


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  • Reply 8 of 71
    The bigger news item here is: There seems to be not much difference on this score between the major platforms. They all seem to be between 55% - 60%.

    I am actually surprised by that!
  • Reply 9 of 71
    I'm one of the lucky 34% that still has unlimited data with AT&T (was a iPhone user way back when, and they have never made me change my plan), but I think paying over $100 is murder. Just like Cable TV they get away with it because its nearly a Monopoly. In this day and age of technology, I would have hoped that prices would have dropped. "Overuse" of data is not what's bogging down the lines, AT&T and Verizon have both admitted that they still have plenty of so-called horsepower, they just want us to think that its limited like Crude Oil.
  • Reply 10 of 71
    rob53rob53 Posts: 2,042member
    I had the AT&T family plan before moving to the mobile share plan. Even with just 1 or 2 phones, I never spent over $100/phone. This was when I had to pay extra for text messages and had a 1400 minute plan. After AT&T changed to call anywhere, I dropped to a 700 minute plan and still had roll-over minutes. Now with 5 iPhones on a MobileShare 6GB plan our total bill is just over $300 or $60/phone. 6GB is a lot of data unless you're constantly watching movies. Even if I moved to the top data tier I don't believe it would put us at $500/mo so I'd like to know how people are paying so much per phone.
  • Reply 11 of 71


    I fall in to the $101-200 category myself. I have an iPhone 4S on AT&T's network with unlimited everything. I don't find this hard to believe at all.

     

  • Reply 12 of 71

    Quote:

    Originally Posted by JeffDM View Post





    I certainly would like to see figures for other countries, though I'm not surprised it's US-only.

    It looks relatively platform agnostic. 59% iPhone vs. 53% with Android.


     


    Exactly what I was thinking. This obviously is a US only, so with that in mind, we just learned that Android & iPhone control over 92% of the smartphone market here so to me... the other OS's are absolutely meaningless. What I see in this headline is a confirmation that cellphone bills are exceedingly expensive. Period.

  • Reply 13 of 71


    I went from $129/month (original "unlimited" iPhone ATT plan, no text, some international calls, taxes, fees) to ~$50/month (Straighttalk + Google voice for international) on my out of contract IP4. Once Apple releases a phone that is truly worth the $700 price over my current IP4, I'll buy it unsubsidized and go with an MVNO or TMO (if they ever get their network in order) prepaid. If the only option is an expensive $100+ contract on the big carriers, I'll go Android.


     


    Because those prices are an EXTREME RIPOFF.

  • Reply 14 of 71
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by KDarling View Post


    I doubt there are millions of people who pay $200 for an "expensive data plan" all for themselves.


     


    I would suggest that the primary reason why a bill would be so high, is because it's for a family.   E.g. add in the kids who got an iPhone.





    So, that many customers have family plans?

  • Reply 15 of 71
    clemynxclemynx Posts: 1,510member
    I pay 20 euros a month for :
    3GB internet with tethering
    Unlimited calls to all mobile phones in France, US and Canada
    Unlimited calls to all landlines in 150 countries
    Unlimited SMS/MMS
    150 TV channels included
  • Reply 16 of 71
    desarcdesarc Posts: 642member
    Does this survey ask how many iPhones are on your plan?
    With two iphones, unlimited data for one, 2GB for the other, and the requisite 200 sms @ $5 for each, we're paying $120 plus taxes [as part of our $292/month Uverse bill]
  • Reply 17 of 71
    rob53rob53 Posts: 2,042member

    Quote:

    Originally Posted by CentralParkMac View Post


    I fall in to the $101-200 category myself. I have an iPhone 4S on AT&T's network with unlimited everything. I don't find this hard to believe at all.

     



    I just checked and got up to $139/mo for unlimited calling, text messaging and the 5GB data plan. I didn't add international dialing. I would find a friend and check out MobileShare to see if you could drop the per phone costs down to a reasonable level.

  • Reply 17 of 71
    clemynxclemynx Posts: 1,510member

    Quote:

    Originally Posted by desarc View Post



    Does this survey ask how many iPhones are on your plan?

    With two iphones, unlimited data for one, 2GB for the other, and the requisite 200 sms @ $5 for each, we're paying $120 plus taxes [as part of our $292/month Uverse bill]


    Wow that's a lot. In France we have packages at 30+15 euros for internet router + tv + unlimited calls on landline + unlimited everything on mobile.


     


    http://translate.google.com/translate?sl=fr&amp;tl=en&amp;js=n&amp;prev=_t&amp;hl=en&amp;ie=UTF-8&amp;eotf=1&amp;u=http://mobile.free.fr/

  • Reply 19 of 71
    john.bjohn.b Posts: 2,720member


    The reason I stayed with AT&T when I got my iPhone 5 was that Verizon couldn't come close to matching my grandfathered plan's $65/month bill with FAN discount: 450 minutes, 200 texts, and "unlimited" data (throttled past 5 GB).  I use maybe 120 minutes, and on the order of 1 or 2 GB of data, but the real reason this plan works for me is that the lion's share my texting is through iMessage.


     


    It would suck to have to buy one of the new plans today...

  • Reply 20 of 71

    Quote:

    Originally Posted by ClemyNX View Post


    Wow that's a lot. In France we have packages at 30+15 euros for internet router + tv + unlimited calls on landline + unlimited everything on mobile.



    It does show Americans can really cut back on their costs. Free should expand in their developing economy!

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