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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Matthew Wilsonbut thats just it those sites, even the small ones, sell all over the country.09/23/2014 - 11:12am
Neenekoeither that or it would follow the car model of today. big ticket items are taxed according to your residence, not where you buy them.09/23/2014 - 11:07am
NeenekoI doubt it would be the retailer that handles the tax in the first place. If it goes through it would probably be folded in as a service on the processor end or via 'turbotax' style applications.09/23/2014 - 11:05am
Matthew Wilsonsimple there are over 10k tax areas in the us for sales tax. it would be impossible for small online retailers to handle that.09/23/2014 - 10:55am
IanCWhats wrong with charging tax in an online shop?09/23/2014 - 10:47am
E. Zachary KnightI don't see why it would be that difficult to maintain one. Especially for a news outlet with multiple people on the payroll.09/23/2014 - 9:37am
Matthew Wilsonthey can, but will they? more inportantly will the traditional sites be willing to do the extra work to maintain the list?09/23/2014 - 9:02am
E. Zachary KnightSo how will it reduce the power of the traditional games press? They can create curated stores too.09/23/2014 - 8:39am
Matthew WilsonI think its a good thing, but it does mean traditional games press will have less power than ever before. To be fair most of the gaming press were never big on pc gaming anyways.09/23/2014 - 8:33am
E. Zachary KnightMatthew, is that a bad or good thing?09/23/2014 - 7:43am
MechaTama31When you say "youtuber", I picture some sort of customizable potato...09/22/2014 - 10:48pm
Matthew Wilsonthis change will only give youtubers more power.09/22/2014 - 9:54pm
prh99Steam has added a curator system. You can follow your favorites and see their recommendations http://store.steampowered.com/curators/09/22/2014 - 9:07pm
MaskedPixelantePlus there's the whole "we don't use accounts" thing that means if you lose your 3DS and have to get a new one, you have to deal with Nintendo customer service to get your downloads back instead of, you know, logging in and downloading them.09/22/2014 - 8:39pm
MonteIndeed. Their wallet system, the lack of sales, applying tax, the lack of price cuts, the eshop is pretty terrible. Only use it for indie games.09/22/2014 - 8:29pm
Andrew EisenThat's the one I'm eyeballing. Really dug the demo. Didn't care as much for EOIV though.09/22/2014 - 8:19pm
MaskedPixelanteOoh, an Atlus sale, it must be a day that ends in "y". I'd much rather get physical 3DS games because of Nintendo's outdated digital distribution policies, but EOU is near impossible to find anywhere nowadays... conflicted.09/22/2014 - 7:48pm
Andrew EisenOooh, Atlus sale in the 3DS eShop. I might have to bust open my piggy bank. http://www.siliconera.com/2014/09/22/shin-megami-tensei-iv-atlus-games-sale/09/22/2014 - 7:21pm
Matthew Wilsonhttp://www.pcgamer.com/2014/09/23/steam-update/ steam finally adds content Curation. I like that the user can pick which peoples recommendations they want to see.09/22/2014 - 7:16pm
MaskedPixelanteNintendo put three dual-gendered characters in Smash Bros 4.09/22/2014 - 7:13pm
 

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