New York Times

Drilling Down: IPhone’s Hold on Users Not Exclusive
May 19, 2008

By Alex Mindlin

Nearly half of iPhone users changed carriers in order to use the device, according to a survey of 460 iPhone users by Rubicon Consulting, a technology consulting firm. The survey found that the average iPhone user was paying $19 more in phone bills than before.

“The numbers are big enough that clearly this thing is profitable for AT&T,” said Michael Mace, a principal at Rubicon. “The big financial leverage is on the people who switch carriers. It’s not like you have to add new cell towers for them; they’re almost all profit. And those people are hard to come by, because you have to switch them off somebody else’s network.”

The original publication can be found at this link.

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