When Apple first launched the iPhone, it was exclusively available through AT&T, largely due to negotiations that did not come to fruition with Verizon. Steve Jobs, then Apple's CEO, initially approached Verizon in 2005 to be the exclusive carrier for the iPhone, believing Verizon's network was the best choice. However, Verizon walked away from the deal after Apple's demands, including a monthly share of carrier revenue and strict control over sales and customer service, proved too steep.
The Early Days of the iPhone and Carrier Exclusivity
Jobs wanted Apple to receive $10 per Verizon customer each month and to control where iPhones were sold, limiting sales to Verizon and Apple stores. He also opposed Verizon branding appearing on the iPhone itself, which clashed with Verizon’s interests. Unable to reach an agreement, Apple granted AT&T an exclusivity period lasting nearly four years.
Verizon Gains Ground Among New iPhone Buyers
Fast forward to 2025, and a Consumer Intelligence Research Partners (CIRP) study shows a significant shift in carrier preference among new iPhone buyers. In the 12 months leading up to September 2025, 38% of iPhone purchasers chose Verizon, marking an increase from 33% in 2020. During the same period, AT&T's share fell sharply from 39% to 26%.
Survey Data Highlights
- Verizon accounts for 38% of new iPhone buyers (up from 33% in 2020).
- AT&T’s share dropped from 39% in 2020 to 26% in 2025.
- T-Mobile’s combined share, including former Sprint customers, rose to 24% from around 12% in 2020 (Sprint had 13% in 2020 before acquisition).
- Regional and other carriers now serve 12% of new iPhone buyers, a 4X increase from just 3% in 2020.
What Drives the Shift?
Verizon’s rise in popularity could be attributed to attractive promotions and trade-in offers that make upgrading more affordable, as well as positive experiences with its network. Meanwhile, the surge in regional and MVNO (Mobile Virtual Network Operator) usage suggests that more consumers are realizing they can enjoy premium coverage and newer iPhone models at a lower cost.
Looking Ahead
The expanding presence of lower-cost carriers utilizing major networks like Verizon, T-Mobile, and AT&T could reshape the wireless landscape for iPhone users. As these options become increasingly viable, the traditional dominance of the big three carriers may face fresh competition based on value and service flexibility.
