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ChangeWave Research

AT&T and the iPhone

May 13, 2008

AT&T's (T) exclusive contract with Apple (AAPL) has clearly given it an advantage over Verizon (VZ) -- even if Verizon is a better service. Based on the numbers, AT&T's decision to hook up with the iPhone seems like a match made in heaven.


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Verizon, the perennial leader in customer satisfaction among cellular service providers, earned a 42% "very satisfied" rating in ChangeWave's latest cell phone survey.

Tied for second were AT&T and T-Mobile, each with a 28% very satisfied rating. That represents a two-point decline for AT&T in customer satisfaction since our January survey.

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Whether it's the sheer merit or the repetition of the "We never stop working for you" jingle, Verizon's customer loyalty is thriving. According to our survey, only 10% of its current customers reported they plan to switch to another cellular provider, which represents an industry-wide low. Oddly enough, while AT&T customers reported being far less satisfied, AT&T's churn was just 11%.

Why are AT&T customers so loyal? And why did more people say they'll switch to AT&T than Verizon?


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The answer is the Apple iPhone, which looks set to capture more than a third of smartphone sales during the next 90 days.

Now if only its customers were happier and the EDGE network wasn't so painfully slow.

Paul Carton is the Research Director of the ChangeWave Alliance. Jim Woods is ChangeWave's Senior Editor. The Alliance is a network of 15,000 highly qualified business, technology and medical professionals in leading companies of select industries. The Alliance is surveyed weekly on a wide range of business and investment research and intelligence topics.