Piper Jaffray: AT&T Exclusivity of iPhone 4 More Damaging than Antenna Problems

September 10, 2010 -

While analysts expected that the technical problems with iPhone 4 antennas would have a profound impact on Apple's sales, the real problem impacting Apple's bottom line is its exclusivity with AT&T. At least, that's what a survey released on Wednesday by Piper Jaffray's Gene Munster concludes.

Munster and his team interviewed 258 cell phone users in Minneapolis to gauge the impact of the iPhone 4's signal problems related to the antenna. Munster claims that surveyors never directly asked respondents about Verizon Wireless, but the subject came up anyway.

Approximately 177 respondents (69 percent) said they were aware of iPhone 4's problems related to faulty antennas. Of those who knew, 20 percent said that it affected their decision to purchase.

Munster said that, for every one respondent that acknowledged the antenna issue, three complained about the iPhone not being available through Verizon. Munster concluded that the "lack of an iPhone on Verizon is holding sales back by about three times more than the antenna issue."

Here's how Munster comes to this conclusion:

"In order to quantify a worst-case scenario, we estimate that 40 percent of all iPhone sales are domestic (was 38 percent in the June quarter). We are modeling for Apple to sell 11m iPhones in the Sept. quarter, implying about 4.4m domestic sales. If Apple lost 20 percent of those sales, or 880k units, it would reduce our EPS estimate in the quarter by $0.11, from $3.72 to $3.61.:

Despite this Apple is still doing very well with the iPhone 4, but Munster's point is that the company could be doing a lot better if it would just hash out a deal with Verizon. Source: CNN Money

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Comments

Re: Piper Jaffray: AT&T Exclusivity of iPhone 4 More ...

With Google's Android os being used on multiple smarts phone today across different cell phone network it would only make since for Apple to expand there iPhone to to other network's like Verizon and T-moble. After all AT&T haven't been doing a good job with the iPhone in my opinion anyways.

http://www.magicinkgaming.com/

Re: Piper Jaffray: AT&T Exclusivity of iPhone 4 More ...

I don't think iPhone exclusivity is helping AT&T nearly as much as it was now that Droids have become popular.  Few people are going to think the benefits of an iPhone instead of a Droid are greater than the difference between Verizon and AT&T coverage and contracts.  

But the exclusivity deal is probably stopping current iPhone users from switching providers.  

 

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Andrew EisenPM - Yep, that's the one.03/06/2015 - 12:53am
TechnogeekBest case, it was some marketing douchebag who thought they could pander to both sides at once.03/06/2015 - 12:49am
TechnogeekAlso, this was the mistake tweet: http://i.imgur.com/4eLWNHx.jpg03/06/2015 - 12:48am
TechnogeekBecause nothing says "open, diverse gaming community" like buddying up with Breitbart.03/06/2015 - 12:47am
Papa MidnightAndrew Eisen, I believe this is the picture that you seek: http://i.imgur.com/Gdk60pa.jpg03/06/2015 - 12:30am
Papa MidnightSurely, Goth_Skunk, you say that in jest?03/06/2015 - 12:28am
prh99Craig R. Cause quite a few of them are not, they're bullies with different politics.03/06/2015 - 12:23am
MechaTama31What was the "mistake" tweet?03/06/2015 - 12:18am
MechaCrashWhatever you say, Goth.03/06/2015 - 12:02am
E. Zachary KnightGoth, they could have fooled me.03/05/2015 - 11:16pm
Goth_SkunkI don't understand. GamerGate supports an open, diverse gaming community for all as well. Google's statement is contradictory.03/05/2015 - 10:59pm
TechnogeekAnd as far as the Card thing went, I basically balanced it out personal guilt-wise by donating an amount equal to the Shadow Complex purchase price to the ACLU.03/05/2015 - 9:44pm
TechnogeekWelp, look like the Gerberghazi crowd is going to have to use Bing now. https://twitter.com/googlecloud/status/57365320825126093003/05/2015 - 9:42pm
Goth_SkunkAhh! I misinterpreted your statement about being left with almost every game in existence. I interpreted it as 'If you boycott games he's been involved with, you're boycotting almost all of them.'03/05/2015 - 9:31pm
Andrew EisenGoth - Card has been involved with only a small handful of games so if one were to boycott games for his involvement, they wouldn't be missing out on many games.03/05/2015 - 9:29pm
Goth_Skunk@Craig: Only if you're not interested in seeing it end.03/05/2015 - 9:27pm
Craig R.Instead of calling people the "anti gamergate faction", you could just call them "sane"03/05/2015 - 9:23pm
Goth_SkunkWhat do you mean 'almost every game in existence'? Card is a writer, not a game developer.03/05/2015 - 9:18pm
Andrew EisenBut I too wonder how many people who cry boycott actually follow through. I vaguely remember a few years ago a bunch of people boycotting one of the CoD games and were all found playing it on Steam.03/05/2015 - 7:53pm
Andrew EisenAn interesting quandary but not equivalent as boycotting games that Card was involved with leaves you with... well, almost every game in existence.03/05/2015 - 7:51pm
 

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