iPhone No Better Than Other Handsets At Driving New Customers To AT&T

CLIFFosakaJAPANSo, I wouldn’t make too much out of this, but it is an interesting observation: Bernstein Research analyst Toni Sacconaghi noted in a research piece today that the Apple (AAPL) iPhone has has been no more effective than the average cellular phone at driving new customers to AT&T[…] Thanks to CLIFFosakaJAPAN for providing this nice story on Digg (more than 21Diggs).

What other users say about this:

streak: “For starters, he point[s] out that iPhone buyers are more likely to be switchers than first-time phone purchasers, which means it is helping the company take share from its rivals.”

For starters then, I take that to mean the iPhone is better than other handsets at driving new customers to AT&T. The iPhone story is about smart phones, not mere “handsets”. Considering the cost of smart phones and their associated rate plans, it does seem unlikely that someone who doesn’t own a cell phone is going to jump straight to using a smart phone. In addition, the iPhone has a high entry level cost for the handset that many potential customers may not recognize is paid for over a 2 year contract by $20/month (plus taxes and fees) less-expensive rate plans for iPhone, thus making the iPhone device itself effectively free.

Bury inaccurate.

battletops: iPhone can drive too? Man this thing does everything.

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