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Thursday January 18, 2007
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Cingular and Apple are both betting on "growing their businesses" by convincing other carriers' subscribers to move over to Cingular so they can buy iPhones. But according to research firm ComScore Networks, that generally doesn't happen. Only 4% of folks surveyed switched to their current wireless carrier for a specific device. On the other hand, 41% switched because of better coverage or lower prices.
Now, I'm aware that the iPhone could be the phone that breaks all the rules. But the message here is loud and clear: carriers should focus on offering the best coverage at the lowest possible prices, and manufacturers should offer their phones on as many carriers as possible, because people pick carriers on coverage and price, not on device.
Any Apple fans who still think the exclusive contract with Cingular was a good idea should check out this article from the Burlington Free Press, found on Engadget Mobile. Apparently, other victims of this exclusivity deal include the entire state of Vermont, where no one will be permitted to buy an iPhone and use it to make phone calls.
This isn't a problem with Cingular. Any individual wireless carrier would have the same problems. Exclusivity, not anything specifically about Cingular, is the problem.
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January 18, 2007 3:07 PM
Agreed. No one really does change carriers for a phone, no matter what that phone is. We usually choose a carrier first and THEN a phone, so it would make sense.
Still. Apple's got a unique kind of power, a special appeal, some would call it the Reality Distortion Field. It remains to be seen if people actually do go to Cingular for the iPhone, but I agree. Exclusivity is the problem here.