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 ...

Submitted by killatia on Fri, 09/10/2010 - 10:33.

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.

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

Submitted by locopuyo on Fri, 09/10/2010 - 01:57.

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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Zen: http://www.airforcetimes.com/article/20130614/OFFDUTY02/306140030/New-Xbox-sin-against-all-service-members-06/18/2013 - 7:33pm

Zen: Been out for a few days, but has anyone brought up the possible ban on Xbox One on military bases because of security concerns that it could be a listening device by Commanders?06/18/2013 - 7:33pm

Andrew Eisen: Sleaker - Fixed.06/18/2013 - 6:34pm

MechaTama31: CMiner: Another issue is that every camera/webcam combination is going to be pretty different, in terms of the software/hardware exploits available. A homogenous hardware/software combo like a console, in millions of homes, will be a much juicier target.06/18/2013 - 6:31pm

Sleaker: Vox pay what you want link is busted.06/18/2013 - 6:27pm

ZippyDSMlee: Mics have to breath put tape over it.06/18/2013 - 6:25pm

NyuRena: You nailed it James! Yikes..06/18/2013 - 1:56pm

james_fudge: With MS willing to share with the government, an always listening device should give everyone pause.06/18/2013 - 1:37pm

james_fudge: you can't turn off the Microphone on the Kinect and it has to be plugged in. It's not rocket science.06/18/2013 - 1:35pm

E. Zachary Knight: The Humble Bundle Guys just don't like me having money in my pocket do they? https://www.humblebundle.com/06/18/2013 - 1:12pm

E. Zachary Knight: CMiner, I know that my Android camera is off unless I am using an application that turns it on. Same with the microphone.06/18/2013 - 12:38pm

CMiner: Can you turn off the camera on an iPhone? Like, -really- turn it off, not just change a setting that -tells- you the camera is off?06/18/2013 - 12:13pm

james_fudge: when they make it a requirement, yes they are06/18/2013 - 12:10pm

CMiner: I just don't think Microsoft bears any more (or less) responsibility for privacy with its Kinect camera than do the makers of laptops or smartphones with integrated cameras.06/18/2013 - 12:00pm

Imautobot: The ability to operate the console without the camera is key. It's a peripheral, not directly integrated into the console, and yet it behaves as if it is. Thankfully I don't have kids, and won't have an Xbone either.06/18/2013 - 11:49am

CMiner: Oh, I agree that the decision to make the kinect mandatory/always listening is terrible.06/18/2013 - 11:48am

E. Zachary Knight: CMiner, and the easier the provider makes to do such things, the better. The fact that the XBone will not even funtion without it plugged in and turned on in some fashion makes a world of difference from a PC Webcam.06/18/2013 - 11:38am

CMiner: It takes steps on the user's part to ensure 100% privacy (unplugging, uninstalling, putting tape over it, not putting it in the kid's rooms, etc)06/18/2013 - 11:29am

CMiner: My point is that no webcam producing company can guarantee that no one will ever ever ever be able to access video from that webcam without your knowledge and permission06/18/2013 - 11:28am

E. Zachary Knight: Of course at that point, you are still opening up yourself to Windows zero day vulnerabilities and back doors that they are happy to share with the government before Windows users.06/18/2013 - 11:26am

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