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October 6, 2008 7:28 AM PDT

30 percent of iPhone 3G buyers dump existing carriers

by Dawn Kawamoto

Apple's iPhone 3G apparently created a summertime switch itch: 30 percent of all the smartphone's buyers bailed on their existing carriers in order to purchase the device, according to an NPD Group report released Monday.

AT&T has been the iPhone 3G's exclusive carrier in the U.S. since the smartphone was released in June.

According to the report, which covers June through August, 47 percent of those switching to AT&T to get the iPhone 3G came from Verizon Wireless, 24 percent from T-Mobile, and 19 percent from Sprint.

"While the original iPhone also helped win customers for AT&T, the faster network speeds of the iPhone 3G (have) proven more appealing to customers that already had access to a 3G network," Ross Rubin, NPD director of industry analysis, said in a statement.

By contrast, about 23 percent of consumers overall switched carriers from June through August.

During that same time frame, the smartphones with the highest unit sales were Apple's iPhone 3G, followed by Research In Motion's BlackBerry Curve, RIM's BlackBerry Pearl, and the Palm Centro, according to NPD.

Prior to launching its 3G version, Apple's iPhone accounted for 11 percent of the smartphone market in 2008. But since the 3G's launch, that figure has risen to 17 percent of the market since the start of the year.

"The launch of the lower-priced iPhone 3G was a boon to overall consumer smartphone sales," Rubin said.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
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Add a Comment (Log in or register) (29 Comments)
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by Ramon366 October 6, 2008 8:19 AM PDT
They WILL be sorry!
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by fordbailey October 6, 2008 8:29 AM PDT
The iPhone 3G was released in July, not June as stated.
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by myles taylor October 7, 2008 11:35 AM PDT
The original iPhone was released in June and that was the date they were referring to I believe.
by ywkhgqo October 6, 2008 8:31 AM PDT
AT&T's network is a joke
Reply to this comment
by whosblue October 6, 2008 8:45 AM PDT
must have missed the punch line for the joke.
don't really see the joke?
can someone help me find the joke in the article?
is it a knock-knock joke? i like those. they require participation from the joke receiver.
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by vtchuck2000 October 6, 2008 8:45 AM PDT
I was one of those and now I am counting the days to get out of my AT&T contract.
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by colamix October 6, 2008 8:56 AM PDT
You gotta love this. Everyone in the OEM and OS smartphone business was resting on their boring laurels for years (some like MS still are) and along comes Apple grabbing a hefty chunk of their market within a year. Give Apple more time to address the business side of things and even that excuse won't save the elephants from their lack of innovation.
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by sythara October 6, 2008 9:32 AM PDT
Not a big fan of Apple myself, but I do give them props for knowing business.

Invention comes out of necessety(sp), and other businesses will have to play catch up.
by moshelinho October 7, 2008 8:56 AM PDT
i soo much agree with you!!!!
by Mr. Dee October 6, 2008 8:56 AM PDT
I personally am waiting for this phone to officially reach Jamaica. Its unofficially on a couple networks Digicel and Cable & Wireless. But the official carrier MiPhone is still in the process of deploying their 3G network and I heard from close sources there are problems, so I am likely not to see the launch until next year. Then again, I am waiting patiently, although, it will be tough move from Digicel which has worked well for me so long.
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by dbraddy October 6, 2008 8:59 AM PDT
I guess we HAVE become a nation of (wireless) whiners.

Could not be happier with my iPhone 3G and AT&T.
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by jeff_xzibit October 6, 2008 5:48 PM PDT
I think you first of all are not familiar with the worldwide market of cellphones. The cellphones market here in America sucks. I have been in Asia, Europe, Middle East and India. I have to admit the cellphone markets over there are way ahead than here in North America. We are just getting started with 3g while Korea, Japan,Taiwan, United Kingdom are almost done with 4G.
The Iphone is the only cellphone which is decent compared to what I've seen on other countries. Even though the Iphone like cellphones existed before without the multi-touch(because it is patented to apple).

In those countries they get these cellphones for free with a monthly contract around 25-40 pound which is around 50 to 80 dollars a month.
Cellphones such as the nokia N96, n95, n82, 5800 XpressMusic or Sony Ericsson c905(8 megapixel camera) or the Samsung SCH-B600 10 megapixel or the G800 with 5 megapixel, nokia 5800 express . All of the above ones have wifi,Gps,GPS,IM,video capture, cut and paste and you name it including a front camera for live video talk and guess what they are given for free with an year contract compared to 2 years here.
These carriers are pretty much ripping us with all those 5 year old mp3 cellhpones.
by b_baggins October 7, 2008 6:25 AM PDT
jeff_xzbit,

Those countries are also the size of a medium-sized state in the U.S. When you can cover your entire nation with half a dozen cell towers, it's easy to upgrade.
by jazzmandan October 6, 2008 9:30 AM PDT
I'm in the Jacksonville, FL area and the AT&T network there is fine. I'm clocking my 3g speeds at 4-10 faster than edge. I get full bars pretty much where ever I go. Not having any issues with AT&T so far.

I find I use my iPhone for so many things in comparison to my BB or Palm Treo and I just haven't seen anything that offers such a compelling user experience.

My wife uses here Iphone about 4 hours a day, more than her computer. She's glued to it. She had a palm for years and never used it.
Reply to this comment
by cyberDJ-2038765336053745013836 October 6, 2008 10:33 AM PDT
AT&T is the reason I don't have an iPhone.

I shouldn't have to dump the service provider I'm comfortable with just to use an over-hyped tech device.

This is why I hate Apple as much as I hate Microsoft. Greed is Greed.
Reply to this comment
by mrgoodall October 6, 2008 11:20 AM PDT
if you argument where to be considered, i'd say where is my samsung instinct? my lg dare? And other phones i cant get on ATT? You cry greed? I say why be in business? the goal of business is to complete transactions; more transactions, more profit, more growth, more customers experiencing your goods n services? as a business owner if you dont want either of the forementioned then maybe you shouldnt be in business.
by DarkHawke October 7, 2008 12:01 AM PDT
Doesn't sound like you think the iPhone's worth bothering over, so why the kvetching? If the iPhone isn't all that, then find something better with your current carrier or be happy with what you have. As they say, don't hate the playah, hate the game.
by Citromike October 6, 2008 11:06 AM PDT
I love the iPhone as a mobile computer / email device, BUT is is almost unusable as a phone due to AT&T's lack of network. My dropped call rate is about 50% and the number of calls I don't make are much higher than that - the only upside is I don't need too many minutes now. And I am in a highly served So Calif metro area. The millisecond that the phone is usable on other networks I'll be gone, penalties and all.
Reply to this comment
by techslut October 6, 2008 12:07 PM PDT
I've had problems with my iPhone at first, but the time I downloaded the new software update, everything is now AOK. I no longer call my phone the "iSuck".
Reply to this comment
by Vegaman_Dan October 6, 2008 12:38 PM PDT
There's two ways to look at this report.

30% of the people who bought the iPhone did so by terminating contracts with other carriers. I would really think that number should be 80% or higher. How many people keep mulitiple phones from different carriers?

70% of iPhone users keep a second phone with another carrier. Does that mean they have to keep a second phone around as a backup when the iPhone doesn't work? Or that they wanted featuers/price/offerings that other carriers provide but AT&T does not?

It's a number that could be perceived any number of ways.
Reply to this comment
by celsius0010 October 6, 2008 12:47 PM PDT
no multitasking, cut and paste, vid cam, expandable mem, ota song and video dl, live tv and radio streaming, removable battery, camera options, flash, stereo bluetooth, picture mail with case cracking, horrendus 3g (please dont say its better than evdo rev a its not in any way), weak gps, and more than double what I pay on sprint.. I couldnt call that the best lol and that whole list applies to the avg iphone and the rare ones that work decent.

I think Im gonna go with a htc touch pro running android on sprint sero for 30 bucks a month unlimited everything and 500 mins...
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by rdidit October 7, 2008 4:50 PM PDT
When you get your HTC, will you please let me know how you like it? I have a Palm Treo 755p that has problems Palm refuses to address. I need to find another device that will replace this one. Many thanks, Randy
by drmatt87 October 6, 2008 2:13 PM PDT
Wait wasn't AT&T or Cingular rated Lowest in Customer Satisfaction in the Big 4 (Verizon, t-mobile, Sprint and AT&T (cingular).... Yeah that's the order... Amazing people don't care about Service or Reliability they just want a trendy phone made by jobs!
Reply to this comment
by mawells787 October 6, 2008 2:41 PM PDT
actually sprint was last and horribly verizon scored 103, alltel 102, tmobile 100,at&t 97 and sprint 79 and if im not mistaking the lowest possible score is 75.
by iphoneman October 6, 2008 2:21 PM PDT
It's high time for the iPhone to come to Verizon, Sprint and T-mobile cause seems like AT&T can't deal properly with 3g networks.

http://www.pikaba.com/c/ContestRules.aspx?m - that's a chance to win a free iPhone 3g.
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by bluemist9999 October 8, 2008 8:45 AM PDT
Moving the iPhone to Verizon requires changing the GSM and 3G software and hardware to use CDMA and EVO. That's probably more trouble than it's worth for Apple, considering Apple already has a worldwide market for GSM phones.
by paulygparty October 6, 2008 2:30 PM PDT
I love my iPhone and my Windows Vista PC!

Good luck to everyone and their cellular service. Why is everybody so angry? Is it jealousy?

I really hope Android turns out to be great. It is going to take it at least a couple years to catch up with Apple though, and just about the time my contract is up, I'll get to buy the best phone (whatever it is) again!
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by rdidit October 7, 2008 5:02 PM PDT
Not jealousy at all..just people wanting fair and honest service for the fees they pay. If AT&T is at the bottom of the list, there must be a reason. I have been treated poorly by AT&T in the past that assures I will never use any service or device with the AT&T logo attached to it. It seems to me Sprint has finally figured out who pays the bills and is trying to improve it's customer service experience.. I have a Palm Treo 755p that re-boots at inconvenient times, and Palm does not want to address the problem. Should be a simple software update to fix.. I am waiting for the next gen of HTC smartphones from Sprint.
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by ahumanbean October 7, 2008 10:11 PM PDT
Just wait. The Blackberry Storm will rain on the iPhone parade. It is interesting that RIM market share has risen the whole time the iPhone has been out. Apple made a flashy, but weak product. RIM will do it right.
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