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Apple's iPhone seen luring other subscribers

Surveys find mobile phone users may switch carriers to get a hold of the iPod maker's new touchscreen phone, which will be sold exclusively through AT&T.


NEW YORK (CNNMoney.com) -- Apple Inc.'s upcoming iPhone is quickly rising in the ranks of popularity before its even hit store shelves, and many are willing to go to great lengths to get their hands on one, according to a survey released Friday.

M:Metrics, which tracks wireless trends, found that Apple's (up $1.41 to $120.16, Charts, Fortune 500) iPhone has gained the attention of 56 percent of British and 64 percent of U.S. mobile phone users who are aware of the new touchscreen phone.

High prices for the iPhone - ranging from $499 to $599 - and its exclusive distribution through AT&T (up $0.09 to $40.65, Charts, Fortune 500) hasn't fazed those interested in buying the phone either.

The survey said 19 million Americans reported a strong interest in buying the iPhone, and two-thirds of about 11,000 polled are subscribers on other carrier networks.

"This is an early indication that AT&T's strategy to use the device to lure customers from competitors could pay off," Mark Donovan, M: Metrics senior vice president and senior analyst, said in a statement.

Nearly two-thirds of those interested in buying an iPhone already own an MP3 player, compared to a market average of 30 percent of those with other music phones, the survey said.

A separate study by the research consulting firm Compete Inc. found that 12 percent of 680 respondents shopping online for an iPod said they are waiting to buy a mobile phone until the iPhone is released. The same percentage of iPod browsers also postponed their purchase of an MP3 player.

Compete said 15 percent of those surveyed were either likely or very likely to purchase an iPhone, while 25 percent of respondents said they were likely or very likely to switch to AT&T to get the phone.

Currently, Sprint Nextel Corp. (up $0.27 to $22.26, Charts, Fortune 500) customers are most interested in switching their network carrier for the iPhone, the survey said.

Respondents will tolerate battery life, storage, and other problematic issues that may arise when it comes to their iPods, but the same doesn't fly when dealing with their phones. The survey found people's No. 1 concern to be the iPhone's ability to function as a phone. Top of page

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