Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile
    • Networking
    • Servers
    • Storage

    Apple iPhone Sales Affected by Antenna, ATandT: Analyst

    By
    Nicholas Kolakowski
    -
    September 8, 2010
    Share
    Facebook
    Twitter
    Linkedin

      Apple iPhone 4 purchases have been hindered by the one-two combination of antenna problems and the company’s reliance on AT&T as an exclusive carrier, according to a new survey by Piper Jaffray analyst Gene Munster.

      The survey included 258 cell phone users in Minneapolis. Despite the study’s small sample size and limited geographic location, Munster was able to draw a broader conclusion about sales of Apple’s latest smartphone: “The antenna issue is removing upside potential for iPhone units, but Verizon is actually the most significant factor limiting demand.”

      Some 8 percent of those surveyed already owned an iPhone 4. Overall, 69 percent reported being aware of the device’s “quality issues,” with 20 percent saying those issues had “impacted” their purchase decision. More respondents apparently cited the iPhone’s non-presence on Verizon, as opposed to Apple’s summer antenna issues, as a reason for not buying the device.

      Around 28 percent of the total respondents owned an iPhone (any version), while 30 percent owned a BlackBerry, 9 percent had an Android-based smartphone, 3 percent went with Nokia, and a whopping 31 percent fell under the “Other” category. Some 38 percent had AT&T as a carrier, versus 31 percent for Verizon, 17 percent for Sprint, and 14 percent for T-Mobile.

      Of the total, around 40 percent considered purchasing an iPhone 4, and 29 percent an Android smartphone.

      Munster’s survey information, if taken as a universal reflection of smartphone owners’ sentiments, runs contrary to Apple’s earlier assertions that the antenna controversy had little effect on iPhone 4 sales.

      “My phone is ringing off the hook for people that want more supply,” Apple COO Tim Cook said during a July 20 earnings call, in response to analyst question. “Right now it is hard to address the real question you’re asking, about is there an effect or not, because we’re selling everything we can make. You can’t run an experiment that way.”

      Cook added: “The returns that we have seen on the iPhone 4 are less than the iPhone 3GS … and the ones for this specific issue are extremely small.” Nonetheless, the company expects to pay out roughly $175 million in free rubber bumpers for the iPhone 4, which will cover the device’s exterior antenna rim; users had complained that touching the rim with bare hands results in a dampened signal. The device sold 1.7 million units within the first three days of its June release.

      Rumors have circulated for months that the iPhone could migrate to a competing carrier, including Verizon or T-Mobile, by early 2011. Despite its exclusive rights to carry the iPhone in the United States, AT&T’s recent 10-Q filing with the Securities and Exchange Commission suggests the carrier could be preparing to lose its lock on the device. Barclays Capital analyst James Raycliffe suggested in a June 22 research note that between 500,000 and 1 million AT&T customers could jump to Verizon’s network should the latter obtain the iPhone.

      Nicholas Kolakowski
      Nicholas Kolakowski is a staff editor at eWEEK, covering Microsoft and other companies in the enterprise space, as well as evolving technology such as tablet PCs. His work has appeared in The Washington Post, Playboy, WebMD, AARP the Magazine, AutoWeek, Washington City Paper, Trader Monthly, and Private Air. He lives in Brooklyn, New York.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×