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iPhone leaves AT&T sitting pretty

Posted by Dan Moren | Monday, May 19, 2008 11:27 AM PT

AT&T and AppleThe iPhone Central Depart of Statistical Analysis and Strategic Systems (yes, we do have SASS) brings you some more fascinating numbers, courtesy of Rubicon Consulting (the same firm that told us last month that iPhone users are young, rich, and technologically savvy). It seems that getting in the iPhone game has, rather unsurprisingly, been pretty sweet for AT&T.

Out of the 460 iPhone users that Rubicon surveyed, nearly half (47%) switched from other carriers just to use the iPhone. And in average, going to the iPhone meant a $19 price hike over their current bills.

As a switcher myself (and, let me tell you, haven’t really found myself missing my old friend Verizon), that sounds right on to me. In particular, that $19 figure is conveniently about the cost of the iPhone’s additional $20/month unlimited data package. Makes sense to me and that makes dollars and cents for AT&T.

Comments (5)

I switched from Tmobile to att simply for the iPhone and yes my bill is a little more it is ok because of all the iPhone does its not just a phone its everything in one no more carying around an ipod and a phone and it has internet to so i think that the price you make up the difference in all that it does.

grace
May 19, 2008
12:22 PM PT

I just hacked our 2 iPhones to work on TMobile. Mainly because I am still under contract.

VR
May 19, 2008
1:19 PM PT

If you think AT&T is sitting pretty, then Apple must be floating on golden clouds in heaven. Each iPhone brings Apple $831 in profit. How?!? Because not only do they profit from the actual sale of the device, but they receive a percentage kickback from every penny iPhone users pay to their service provider AT&T.

www.ismashphone.com

May 19, 2008
1:46 PM PT

in my case, I use the iphone extensively internationally but since at&t does not have an unlimited data package like they do for blackberry, it represents over $200 per month!!!!

emanmiami
May 19, 2008
6:47 PM PT

I switched from Nextel to AT&T. I paid the early termination fee to switch and as happy to get away from Nextel. The customer service is horrid. AT&T so far has been great, and Apple is great as well. I do not regret the switch or the money it cost me to switch. No more headaches is fine by me.

Stacey
May 21, 2008
1:12 PM PT

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