If you haven't heard by now, Apple's
Some interesting research from Oppenheimer analyst Yair Reiner shows that AT&T is drawing fewer and fewer new subscribers with each new iPhone launch. When the revolutionary device debuted in 2007, roughly 18% of the buyers listed Verizon
One explanation I've heard for the dwindling defections is that phones based on Google's
I see another reason, however. It's logical that fewer folks will switch with each launch until we eventually get down to those who simply won't go with AT&T no matter what. Some may live where it's just not an option. Others may prefer to avoid the dropped calls, weak signals, and other problems caused by the huge amount of data traffic being generated by smartphones and iPads. Some may hate the AT&T commercials with Luke Wilson. Whatever the reason, we're running into the law of diminishing returns here.
The big winner: Apple
Apple has played the AT&T relationship smartly, reaping great benefits from going with an exclusive carrier to this point. And now, it seems all but certain that Verizon and others will eventually carry an iPhone -- possibly as soon as the first quarter of next year, according to a Barclays Capital analyst quoted in Barron's. This will result in a flood of new sales and high fives in Cupertino.
So how long will the iPhone magic last? With AT&T starting to sell the iPhone in its stores tomorrow, and Best Buy
Yep, you can bet the Apple momentum will carry well into 2011. It's good to be da King.
Fool analyst Rex Moore remembers when phones were attached to the wall with a cord-thingie. Best Buy, Sprint Nextel, and Wal-Mart Stores are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers pick. Apple and Best Buy are Motley Fool Stock Advisor choices. Motley Fool Options has recommended a bull call spread position on Best Buy. The Fool owns shares of Best Buy. The Motley Fool has a disclosure policy.