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  1.    #1  
    HI all

    FYI,

    Take care,

    Jay

    Will AT&T iPhone users really defect for Verizon?
    August 16, 2010 1:14 PM PDT
    by Marguerite Reardon,

    Will AT&T iPhone users really defect for Verizon? | Signal Strength - CNET News

    Will they stay or will they go?

    That's the big question AT&T executives are likely asking themselves about the millions of iPhone customers who may consider leaving the operator once the popular smartphone is offered on other carrier networks in the U.S.

    While AT&T has not said when its exclusive deal for the iPhone ends, the company has been preparing shareholders for a day when the iconic device will be available to its competitors. Rumor has it that Verizon Wireless, AT&T's chief competitor, will get a version of the iPhone in January.

    A recent survey by the market research firm Morpace found that 34 percent of those surveyed who already own an AT&T iPhone are waiting to upgrade their phones until the iPhone becomes available on another carrier. And about 47 percent said they'd at least consider moving over to Verizon for the iPhone. About a quarter of all AT&T subscribers said they were somewhat or very likely to switch to Verizon for an iPhone.

    Morpace's sample was relatively small. Out of 1,000 respondents, only about 100 were current AT&T iPhone subscribers, but Jay Heyboer, vice president of technology and Advanced analytics at Morpace, said the findings are still statistically valid.

    The results aren't too surprising given the flood of bad press AT&T has gotten over the past couple of years. iPhone users around the country, particularly in urban areas, have flooded the Web with complaints about the iPhone's slow 3G speeds and dropped calls. Preorder problems with the iPhone 4 didn't help AT&T's reputation either as millions of potential customers were shut out of ordering the phone ahead of its launch in June.

    One thing seems to be clear: iPhone owners are very loyal to the iPhone and Apple brand. About 77 percent of current iPhone owners say they intend to buy another Apple phone, according to a recent survey conducted by the Yankee Group.

    And it looks like there is pent up demand for the iPhone on other carriers, despite the fact that wireless users on other networks now have the choice of many other competing phones, such as the Google Android phones. The Morpace survey also found that half of Verizon Wireless's current customers said they were likely to get an iPhone once it comes to Verizon's network. This is interesting considering the strong sales that Verizon has seen for the Google Android phones, such as the HTC Incredible and the Motorola Droid, Droid 2 and Droid X. The Yankee Group also found that a third of all smartphone owners of all types who intend to buy a smartphone intend to buy an iPhone. In fact, Apple is the most popular choice for a future smartphone among all mobile phone owners, according to a blog post written by Carl Howe, an analyst with Yankee Group.

    Whether or not consumers will be as loyal to AT&T as they are to Apple and the iPhone is the big question.

    Consumers on Verizon's network continue to give the company high marks in terms of satisfaction for its network. In May, ChangeWave Research released data from a March 2010 survey that found 49 percent of Verizon's customers said they were very satisfied with their service. In second place was Sprint Nextel with a 35 percent satisfaction rate. T-Mobile and AT&T both tied for last with only 23 percent of their customers who said there were very satisfied.

    Verizon also came out on top in the fewest number of dropped calls in the ChangeWave survey. Only 1.5 percent of customer calls were lost over the prior three months. The dropped call rates were 2.4 percent for Sprint and 2.8 percent for T-Mobile, while AT&T was at the bottom with customers reporting 4.5 percent of their calls being lost. The dropped call rates marked Verizon's best since September 2008 and AT&T's worst over the same time frame.

    But when it comes to retail satisfaction or customer support, Verizon drops to the bottom of the pack. A recent JD Power and Associates survey ranked T-Mobile USA as the highest in price promotions and in-store sales. Sprint came in second, AT&T third, and Verizon Wireless was last in this survey.

    In terms of customer service, Vocal Laboratories(Vocalabs) recently released results from a survey that indicates that Verizon placed lastout of the four major U.S. wireless carriers when it came to satisfying customer service calls. Customers were interviewed following customer service calls to rate their experiences following the calls.

    When you compare actual churn rates, or the rate at which customers drop one carrier's service for another, AT&T and Verizon are neck and neck. For the second quarter of 2010, Verizon reported a churn rate of 1.27 percent and AT&T reported a churn rate of 1.29 percent for AT&T.

    By contrast, Sprint and T-Mobile still have much higher rates of churn than either AT&T or Verizon. What this means is that regardless of whether they are satisfied or not, customers are much more likely to stay with AT&T or Verizon than they are these other carriers. And customers are just as likely to leave Verizon as they are AT&T.

    Could this change when the iPhone finally comes to Verizon? Perhaps. But analysts warn that what consumers say they will do and what they actually do are two different things.

    "There seems to be a significant number of people willing to consider switching from AT&T to Verizon for the iPhone," said Morpace's Heyboer. "Of course, the percentage of people who actually make that switch will probably be lower. But I think we are certainly picking up on dissatisfaction of some consumers and an openness to pursue other options."
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2. #2  
    It was a bit lengthy for me to read the whole thing, but I think the bigger factor would be how many verizon users would be willing to get the iphone if it comes out on vzw. I bet there would be a good amount of defectors, but I think the sales numbers for a verizon launch of the iphone 4 would smash the sales from AT&T.
  3. #3  
    I know several people who would get a Verizon iPhone 4 in a heartbeat if they had the chance. Hell even I would be tempted to switch from WebOS.
  4. Tedcas's Avatar
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    #4  
    Apple wins. A massive new customer base of Verizon to access, plus defections from AT&T for a superior network. I bet huge number will use the Iphone on Verizon...
  5. jeking's Avatar
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    #5  
    its not just those who will defect from ATT but, more importantly, those who will buy the iphone but don't want to deal with ATT. That's the bigger market.
  6. Targon's Avatar
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    #6  
    When it comes right down to it, there is little that is so special about the iPhone compared to the other top end devices that people would suddenly abandon those other devices to make the switch. So, for those already on Verizon, would people be willing to replace their devices for the iPhone? As an upgrade from a "lesser" device SOME might. You would also see some from AT&T switching after their current contract expires, since the grass is always greener on the other side.


    This is why the churn rates are the way they are, because when it comes right down to it, people do NOT expect that things will be better with another carrier. Verizon has areas where it provides better service, and AT&T has areas where it provides the best service. One thing missing is carrier satisfaction, and trust. While some may prefer the service from Verizon, do people LIKE Verizon? People can often develop a loyalty to a company due to many subjective things. If 50 percent of the customer base is generally happy with service, 25 percent LOVE the service, and 25 HATE the service, you see the 25 percent looking to switch, and then you see how many are really willing to switch when the time comes.

    So, the two year contract...those who bought an iPhone 4 won't be going to Verizon for at least another year and a half, so no matter if Verizon gets the iPhone or not, you won't see a mass exodus. By the time the contracts expire as well, the other platforms may very well be seen as more attractive for customers.

    With a larger device and some real advertising, HP/Palm could seriously turn things around. You should see how much attention there is surrounding the new Blackberry Torch, just because there was real advertising to draw interest, and it isn't anywhere near as good a device as we have with the Palm Pre Plus. The general public will go where the advertising is focused, since most don't even use the "smart" features of their smartphones.
  7. #7  
    Quote Originally Posted by Targon View Post
    When it comes right down to it, there is little that is so special about the iPhone compared to the other top end devices that people would suddenly abandon those other devices to make the switch. So, for those already on Verizon, would people be willing to replace their devices for the iPhone? As an upgrade from a "lesser" device SOME might. You would also see some from AT&T switching after their current contract expires, since the grass is always greener on the other side.
    I'm on Verizon and I will probably get an iPhone when they're released. It's nice to have a phone that just works out of the box and I'll be at the 6 month point on my current phone ... which is when I get the new phone itch.

    Quote Originally Posted by Targon View Post
    This is why the churn rates are the way they are, because when it comes right down to it, people do NOT expect that things will be better with another carrier. Verizon has areas where it provides better service, and AT&T has areas where it provides the best service. One thing missing is carrier satisfaction, and trust. While some may prefer the service from Verizon, do people LIKE Verizon? People can often develop a loyalty to a company due to many subjective things. If 50 percent of the customer base is generally happy with service, 25 percent LOVE the service, and 25 HATE the service, you see the 25 percent looking to switch, and then you see how many are really willing to switch when the time comes.
    Your theories are interesting, but Verizon continually maintains the lowest churn rate in the industry. Verizon also consistently tops out the JD Power surveys for customer satisfaction in every region. There's a reason for this and it doesn't have to do with an amorphous concept like customer loyalty. People eventually come to the conclusion that they prefer a solid, consistent network and can get that from Verizon in more places than the other providers. It's not loyalty, it's value: getting what you pay for.

    Quote Originally Posted by Targon View Post
    So, the two year contract...those who bought an iPhone 4 won't be going to Verizon for at least another year and a half, so no matter if Verizon gets the iPhone or not, you won't see a mass exodus. By the time the contracts expire as well, the other platforms may very well be seen as more attractive for customers.
    People leave when they want to. ETF's affect some iPhone users, but a large percentage of them have already proven they have ample disposable income to leave AT&T when a better option becomes available.

    Quote Originally Posted by Targon View Post
    With a larger device and some real advertising, HP/Palm could seriously turn things around. You should see how much attention there is surrounding the new Blackberry Torch, just because there was real advertising to draw interest, and it isn't anywhere near as good a device as we have with the Palm Pre Plus. The general public will go where the advertising is focused, since most don't even use the "smart" features of their smartphones.
    I'm not sure how the pending major growth of iPhone's market translates into an HP/Palm turnaround. How did that become a part of this thread? The growth of the iPhone into another large, untapped market should give HP a sick feeling in the pit of their stomach.

    While there may be some attention being paid to the BB Torch, it still isn't getting the coverage the iPhone and 2 or three Droids are getting (Droid 2, Droid X, Evo, and future Droids). Based on my daily google alerts, the phrase "Verizon iPhone" gets an order of magnitude more hits than "Blackberry Torch."
  8. #8  
    honestly if HPalm doesn't come out with something I will probably get it. My friends who have droids said they would also. It's just that the iphone has so much support.
  9.    #9  
    Quote Originally Posted by bullonparade85 View Post
    honestly if HPalm doesn't come out with something I will probably get it. My friends who have droids said they would also. It's just that the iphone has so much support.
    HI ALL,

    Here are my reasons why I am going to wait for the next Palm, I had to sit out getting a Pre, as my Centro contract (2 years I was not the primary phone on account), ends the middle of this October. Therefore, I had to live vicariously using webOS thru the other contributors to this site.

    1. I am sure a new Palm will be here before you know it. (I believe that the very small amounts of Pre on hand at V & AT&T, is proof of this. As Palm is tooling up for production of the Pre/Pre Plus successor). Or at least I hope this is why there is such a short supply of the Pre.

    2. I don't want a Iphone, b/c Jobs doesn't seem to think that "real" keyboards are needed....even thought I do and I have been using a smart phone with a keyboard for almost 8 years.

    3. Just the fact that HP bought Palm, will cause many more apps to be written or ported to the webOS platform. Almost every day, there there is a listing of new things written or ported to webOS on this site. (Just in the last day or two one of the largest game firms, announced it will start porting it's games to webOS).

    4. Even before the buyout was announced Palm has suppling hands on tech personnel to game and other app firms to help port apps to webOS. Palm has even sent tech people to the app companies offices.

    5. The two types of "TOOLS", to port apps have both been released by Palm.

    6. At least for me, I don't go in for what everyone else is doing and I never did...from smart phones to being a vegetarian for 35 years, to not using drugs...I did or used a product that I wanted to....not the one that is popular....

    7. For all of the apps that are out there...survery after survey have found, that people load their Iphone up with apps and then never use more than 3 or 4 at all.

    8. Palm has been good to me...when ever I had a problem that my carrier couldn't fix, Palm came thru for me.

    Take care,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  10. #10  
    Quote Originally Posted by ilovedessert View Post
    HI ALL,

    Here are my reasons why I am going to wait for the next Palm, I had to sit out getting a Pre, as my Centro c*ontract (2 years I was not the primary phone on account), ends the middle of this October. Therefore, I had to live vicariously using webOS thru the other contributors to this site.

    1. I am sure a new Palm will be here before you know it. (I believe that the very small amounts of Pre on hand at V & AT&T, is proof of this. As Palm is tooling up for production of the Pre/Pre Plus successor). Or at least I hope this is why there is such a short supply of the Pre.

    2. I don't want a Iphone, b/c Jobs doesn't seem to think that "real" keyboards are needed....even thought I do and I have been using a smart phone with a keyboard for almost 8 years.

    3. Just the fact that HP bought Palm, will cause many more apps to be written or ported to the webOS platform. Almost every day, there there is a listing of new things written or ported to webOS on this site. (Just in the last day or two one of the largest game firms, announced it will start porting it's games to webOS).

    4. Even before the buyout was announced Palm has suppling hands on tech personnel to game and other app firms to help port apps to webOS. Palm has even sent tech people to the app companies offices.

    5. The two types of "TOOLS", to port apps have both been released by Palm.

    6. At least for me, I don't go in for what everyone else is doing and I never did...from smart phones to being a vegetarian for 35 years, to not using drugs...I did or used a product that I wanted to....not the one that is popular....

    7. For all of the apps that are out there...survery after survey have found, that people load their Iphone up with apps and then never use more than 3 or 4 at all.

    8. Palm has been good to me...when ever I had a problem that my carrier couldn't fix, Palm came thru for me.

    Take care,

    Jay
    I hope your right I love my pre plus and I love precentral!
  11. #11  
    If Apple gets the Antenna mess worked out, then maybe.

    On second thought - Nope.
    Just call me Berd.

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