iPhone 4 Antenna Survey Highlights Lack Of Verizon iPhone Is A Bigger Problem
According to a survey carried out by Piper Jaffray's Gene Munster, iPhone 4’s highly publicized antenna problem affected some sales but every one respondent that acknowledged the antenna issue about three complained about the iPhone not being on Verizon.
The results of the survey further validates the study by Morgan Stanley's Kathryn Huberty, which claimed that Apple could double iPhone’s market share by opening up to more carriers.
Gene Munster and team interviewed 258 cell phone users in downtown Minneapolis for their survey. Here are some of the results from the survey:
Antenna problem: 177 respondents, or 69%, indicated that they were aware of iPhone 4 quality issues. Of those who are aware of the antenna issues, 20% indicated that they impacted their purchase decision.
Verizon (VZ) problem: For every one respondent that acknowledged the antenna issue about three complained about the iPhone not being on Verizon. In other words, the lack of an iPhone on Verizon is holding sales back by about three times more than the antenna issue.
Worst case scenario: "In order to quantify a worst-case scenario, we estimate that 40% of all iPhone sales are domestic (was 38% in the June quarter). We are modeling for Apple to sell 11m iPhones in the Sept. quarter, implying about 4.4m domestic sales. If Apple lost 20% of those sales, or 880k units, it would reduce our EPS estimate in the quarter by $0.11, from $3.72 to $3.61.
Finally, Munster concludes:
"The antenna issue is removing upside potential for iPhone units, but Verizon is actually the most significant factor limiting demand."
In another survey of over 1000 consumers conducted by market research firm, Morpace, the researchers found that nearly half of the current lot of iPhone users would consider to migrate to Verizon if such an option was made available.
There are many rumors and speculations, which indicate that Apple will offer a CDMA iPhone in January 2011 on Verizon’s network.
Are you happy with iPhone 4? Are you waiting for another carrier to offer iPhone to upgrade your current iPhone model or plan to stick with AT&T? Let us know in the comments.
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