No Wonder Every Carrier Wants to Sell iPhone


According to the latest research by Yankee Group, a typical iPhone user generates $5,345 in net revenue over five years for their carrier, after subsidies and bandwidth costs, compared to $5,097 for other smartphone owners.

The research further shows iPhone owners shop more, buy more and remain more loyal to their phones than users of other devices. Well, with all those apps for iPhone over other smartphones, this does make sense.

The research further shows:

. Consumers who buy an iPhone are also likely to be younger and more affluent, averaging 32 years of age with a household income of $100,000, whereas owners of competing devices average 34 years old with a household income of $85,000.

. While the average mobile user spends 19 minutes per day accessing the mobile Internet, iPhone users on average browse for 37 minutes per day while other smartphone users access the Internet for 32 minutes per day.

. The average iPhone customer downloaded nearly 13 apps during the past 90 days; other smartphone owners average less than half that

. iPhone owners are more interested in mobile transactions and conduct more m-commerce than users of other smartphones and mobile phones.

iPhone exclusivity with At&t  certainly has helped AT&T consistently gain wireless market share in recent years. Not sure how long it will last though.

I am sure the competing mobile providers like Verizon and Sprint are monitoring this. In fact, as I reported earlier this month Verizon is currently working on a deal with Apple.  Once or if  that deal goes through, given the large number of pissed off AT&T subscribers, I doubt, At&t will be able to sustain the revenue forecasted by the Yankee Group.

The other thing the report is missing  is the At&t’s operating cost to generate such revenue. Although, iPhone users have significantly  contributed to AT&T’s income — but At&t has gone though hell to spend $$$ billions on their network upgrades and they still have ton of PISSED OFF customers. So, looking at the graph below, I won’t be surprised the orange bar will end up being much taller than the gray bar in five years. Translation: will it worth for At&t to keep the exclusivity with Apple?

Source: AT&T, UBS


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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

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