Chibimagic's Weblog

NPD’s report on iPhone switchers

Posted on: October 13, 2008

Everyone’s talking about the report last week from the NPD group that says 30% of new iPhone customers in the US switched carriers, compared to 23% of all US customers during the same period. The report also says that of the switchers:

  • 47% came from Verizon
  • 24% came from T-Mobile
  • 19 % came from Sprint

Most people are pointing out that Verizon must be hurting from this. But if you compare current US market share, it’s actually T-Mobile that’s hurting the most. According to Wikipedia’s article on the list of United States wireless communications service providers and CTIA, current US market share is:

  • 72.9 million AT&T
  • 69.3 million Verizon
  • 51.9 million Sprint
  • 31.5 million T-Mobile
  • 266.1 million total

There are 193.2 million potential switchers to AT&T. If the switchers were evenly distributed based on current market share, this comes out to be:

  • 36% Verizon
  • 27% Sprint
  • 16% T-Mobile

Verizon is hemorrhaging customers at a 30% higher rate due to the iPhone, and T-Mobile is losing them at a 50% higher rate. Ouch.

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