26% of iPhone users plan Verizon jump
A recent consumer survey indicates more bad news for AT&T.
In short, how many subscribers to Verizon's wireless service will dump their current phones to snap up new iPhones, and how many of AT&T's iPhone users will jump ship for a telecom provider whose only disadvantage to AT&T once seemed to be that it didn't sell an iPhone?
Thanks to a recent survey by ChangeWave Research, we have an indication, at least, of consumers' initial intentions.
Post continues after video:
Keep in mind, however, that these are all AT&T customers, regardless of whether they owned the iPhone. ChangeWave found that current Apple iPhone owners were the most likely group to jump to Verizon, with more than a quarter (26%) saying they'd leave AT&T.
And when will they make the move? For many, very soon. Among all AT&T customers planning to switch to Verizon, two in five (41%) say they'll jump in the first three months -- and an additional 31% in the first year.
- Related Article: 3 reasons Verizon will win the iPhone war
The reasons AT&T customers plan to make such a move are less surprising, and ChangeWave's research has confirmed what have been the common complaints by consumers -- in effect, that AT&T's wireless service is simply less reliable than Verizon's. When asked why they planned to switch, 42% of AT&T customers cited poor reception and coverage, while 27% pointed to dropped calls.
The irony of the dropped-call mention is that, according to ChangeWave, AT&T customers have actually reported a decline in dropped calls since September, falling to 4.7% from 6%.
But brand loyalty, or lack thereof, can be a harder thing to budge. The survey found that AT&T led the pack among all wireless customers who planned to switch for any reason -- 15% of AT&T subscribers said they were likely to jump within the next 90 days, compared with just 4% for Verizon.
Interestingly, that result for AT&T was a large jump from September, when only 10% of its customers planned on making a move. However, what seems more likely to have happened -- a sudden increase in dissatisfaction or the realization over the past month that Verizon was readying a place for which AT&T's iPhone users to move?
- Related Article: The 3 Top iPad Rivals
Taken as a whole, ChangeWave's survey suggests a bigger hit to AT&T from the iPhone's move to Verizon than even the most dour Wall Street analysts have suggested. Analysts at equity research firm Hudson Square, for example, were among the more pessimistic, noting on Tuesday that they expected 4 million AT&T iPhone users to make the move to Verizon, or 17% of its iPhone customer base.
Considering that ChangeWave found that more than one-quarter of iPhone owners were definitely planning to jump, the numbers could be even worse for AT&T.
- Related Article: Four 2011 gadgets sure to flop
The other kernel in all of this, of course, is how phones running on the Android platform -- up to now a key part of Verizon's strategy vs. AT&T and the iPhone -- will fare now that Verizon will put its marketing muscle behind its partnership with Apple.
Go here full details on the ChangeWave iPhone survey.
I'm sure the people responding to this survey either did not know or weren't thinking of the following:
The ~$300 early termination fee for ending your contract.
The fact that you will have to buy a new iPhone because of the different networks AT&T and Verizon run on.
Once people know about this, that 26% will drop off a lot. Maybe people who bought the 3GS in 09 will jump when their contract is up this summer, but at that point, both AT&T and Verizon will be pushing their 4G phones heavily.
it looks like you, in fact, are also randomly talking about Verizon because if you had your facts straight, you would know that the iPhone coming to Verizon in Feb. WILL NOT WORK on the 4G network...
So next time, you get more information before posting aimlessly.
AT&T 4 LIFE!!! (not really, but I needed a closing)
I'm an AT&T/iPhone 4 user and I have not experienced any poor coverage or dropped calls since we purchased the iPhone and switched to AT&T last July. I travel extensively throughout the US for business and coverage has not been an issue at all for me. I did have a software problem with my iPhone in November and the people at the Apple Store changed out my phone for no charge. I'm completely satisfied with both the iPhone and AT&T!
1. I am loyal so staying with AT&T
2. Even if I wasn't I am not about to waste the high dollar termination fee to switch
3. I do not experience dropped calls or bad reception unless I am on one road in my area
4. I do not own an iPhone. I have a $50 touchpad phone that dropped to $20 one month after I bought it.
5. I plan on getting an iPhone after the Verizon launch date and when the jumpers jump because AT&T will probably drop the prices dramtically to keep customers
6. Why does iPhone have to be so very expensive anyway? The prices suck.
The iPhone 4G is a much better device than the droid. The droid is just a knock off. The iPhone has better graphics, secruity, software, and architecture. The droid is susceptible to viruses as well. I wouldn't do anything that requires security on the droid.
The AT&T network has major advantages over teh Verizon network. The cost and ability to do both voice and data at the same time is a point missed by most people considering the move to Verizon. I often am on the phone and need to use the data services while having a discussion via the voice network. I could not imagine not having this option or having to hang up to check something.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Excitement is growing about the company's new iPhone, expected this fall.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.