Will You Switch for the 3G iPhone?

Posted by: Olga Kharif on July 10, 2008

Released a year ago, the first iPhone has lead a mass of people to switch to AT&T, the exclusive seller of the iPhone in the U.S. Would the new, 3G iPhone, due to debut on July 11, have the same effect?

Opinions differ. Richard Doherty, director of consultancy Envisioneering Group, believes that the new iPhone will cause double the churn of the prior model. On the other hand, Consultancy Compete recently surveyed people who are likely to churn, and with some interesting results. At least 85% of the potential defectors still have at least six months left on their existing wireless contracts, and don’t plan to change carriers until these contracts run out. Compete also warns that users still value network quality and plan pricing way more than they do device features. So in areas where AT&T’s coverage isn’t as good as that of rivals, users are less likely to switch.

Are you planning to switch to AT&T in order to buy the new 3G iPhone? What are your reasons? And how soon do you hope to move over?

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Reader Comments

berto

July 11, 2008 01:59 PM

I've been running on 2 different broken RAZRs for the past 3 weeks. For only $200, I'm definitely in.

Kinda wish I could get the iPhone to wok though, iTunes isn't connecting

J.Burlingame

July 14, 2008 10:02 AM

Nope. I also didnt buy the RAZR when it was THE phone. Now, Verizon gave it to us for $10 with a contract extension.

I'll wait til the iphone is on Verizon and $50.

HD Boy

July 15, 2008 03:11 PM

Yes. On day two (Saturday) we dumped Sprint after eight frustrating years on a good network with decent pricing plans but poor customer service and terribly inferior and feature-limited phones, many of which are cheap Asian knock-offs of more popular phones. No more. My SO and I each own iPhones now.

So far, the iPhone is living up to the hype. While it is by no means perfect (no voice dialing or speed dialing as of yet), it is the very best cell phone I have ever used and you simply make the necessary adjustments to live within the limitations. The Contacts software is intelligent and the best I have ever seen, the e-mail data syncing is excellent, the phone and music sound quality is excellent and the Web surfing experience is unrivaled. Finally, the clever Application Store ensures that the iPhone will be constantly improved.

However, AT&T's network only delivers a weak 3G signal at best inside our suburban home (1-2 bars, as does every other carrier). While AT&T's (and other carrier's) 3G maps show full coverage, we only get 1-2 bars when 3G is turned on (3-5 bars for 2.5G). Consequently, we finally may add a signal amplifier to the exterior (or attic) of the house. We can justify this $300 cost because we dropped our landline account about four years ago and this is our only telecommunications for the home/office.

Michael

October 13, 2009 05:27 AM

So far so good: the new iPhone 3GS has solified the market position of the iPhone.

And the iPhone without a contract, but already factory unlocked, is getting more and more popular over here in Europe. More information can be found at http://www.buyplanet.de

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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