The launch of a new iPhone is still the most significant event in the wireless year. When consumers prepare to get their next iPhone, they are also undertaking a major financial decision and are often using that opportunity to evaluate new mobile service provider options.
The different wireless carriers are engaging in different strategies for retaining and attracting customers who are getting a new iPhone. AT&T is offering the same deals for new and existing customers on all unlimited plans. T-Mobile requires customers to either add a line, upgrade their plan or be on their most expensive plan. Verizon is targeting only their best customers and new customers with the best offers.
The results are telling: AT&T’s John Stankey said during AT&T’s Q3 earnings call that AT&T “saw the strongest iPhone preorders we've had in many years.” Meanwhile, Verizon’s Hans Vestberg said during Verizon’s Q3 earnings call that “we continue to see muted upgrade levels.” T-Mobile’s Mike Sievert said customers don’t feel they need to take advantage of the device upgrades.
We can see in near real time how the respective carrier strategies materialize in the marketplace. We collected around 30,000 respondents between the iPhone 15 launch and last weekend, giving us faster and more in-depth data on what is happening than anyone else.
Based on our data ending 10/22/23, AT&T has the most iPhone 15 upgrades of any carrier despite being the smallest of the nationwide mobile network operators (MNO). That was followed by T-Mobile, who had the lowest upgrade rate in the industry but its iPhone sales were buoyed by the highest net adds.
They were trailed by Verizon, who is the largest MNO, with the second lowest upgrade rate and the lowest net adds. As one would expect, Xfinity and Spectrum are trailing the MNOs as they are offering significantly less generous device promotions.
The premium iPhone is becoming a super-premium product. We can see this with the heavy skew towards the iPhone 15 Pro and Pro Max, Apple’s most premium products. More than three quarters of all iPhone 15s are the two premium versions of the iPhone, with the Pro Max outselling the Pro.
This shows the pricing power that Apple possesses as the cheapest iPhone 15 Pro Max was $100 more expensive than the iPhone 14 Pro Max but received a storage upgrade.
Roger Entner is the founder and analyst at Recon Analytics. He received an honorary doctor of science degree from Heriot-Watt University. Recon Analytics specializes in fact-based research and the analysis of disparate data sources to provide unprecedented insights into the world of telecommunications. Follow Roger @rogerentner.
"Industry Voices" are opinion columns written by outside contributors—often industry experts or analysts—who are invited to the conversation by Fierce staff. They do not necessarily represent the opinions of Fierce.
Editor's Note: Article updated to clarify AT&T is offering the same deals for new and existing customers on all unlimited plans.