iPhone 3G significantly helping AT&T to attract subscribers from competitors in USA

Posted in iPhone News, iPhone product by admin. Published October 9th, 2008

In an interesting revelation, it has emerged that AT&T due to its offering of iPhone 3G has been able to churn away subscribers from its rival networks including Verizon, Sprint and T-Mobile with the churn rate being as high as 30 % in some cases.

“The launch of the lower-priced iPhone 3G was a boon to overall consumer smartphone sales,” according to Ross Rubin, director of industry analysis for The NPD Group which conduced the study. “While the original iPhone also helped win customers for AT&T, the faster network speeds of the iPhone 3G has proven more appealing to customers that already had access to a 3G network.”

As per the study, of the total iPhone 3G sales, from the June through August 2008 period, 30% of the customers turned out to be from rival networks who switched over to AT&T for iPhone 3G.

Of the total churn subscribers, Verizon subscribers formed the majority lot with 47 %, T-Mobile with 24 % and Sprint with 19 %.

The top four smartphone players in USA during the June-August period merged as shown:

1) Apple iPhone 3G
2) RIM Blackberry Curve
3) RIM Blackberry Pearl
4) Palm Centro

Sales of Apple’s iPhone 3G now command 17 % market share in the smartphone segment. Interestingly the main driving force behind the surge in demand as per the report is the price of the handset i.e.$ 199 which has helped Apple and AT&T to address a larger market.

While iPhone 3G is turning out to be a revolutionary product across the globe, unfortunately in India the product has failed to attract consumer attention, the reason being price set for the model at upwards of Rs 31,000.

[Thanks: http://www.telecomtiger.com]

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