The iPhone 4's connectivity issues prompted some cell phone customers to shy away from purchasing the device, but the main reason customers have avoided Apple's new smartphone is because it is offered on the AT&T network rather than Verizon Wireless, according to a Wednesday report.
Piper Jaffray recently conducted a survey of 258 cell phone users in Minneapolis, and found that 67 percent, or 177 people, were aware of the iPhone 4 "death grip" or "antennagate" problems. Of those respondents, about 20 percent said the problems had impacted their purchase decision.
Piper Jaffray predicted that Apple will sell 11 million iPhones in the September quarter. As a result, if "antennagate" prompted 20 percent of people to avoid the iPhone 4, that could translate into a potential loss of 880,000 units, the firm said.
But for every one person surveyed who knew about "antennagate," another three people complained about the lack of an iPhone on Verizon, the report said.
"The antenna issue is removing upside potential for iPhone units, but Verizon is actually the most significant factor limiting demand," Piper Jaffray analyst Gene Munster wrote in his report. "The lack of an iPhone on Verizon is holding sales back by about three times more than the antenna issue."
Piper Jaffray said it expects a Verizon iPhone by mid-2011.
Of those surveyed, 72 people had iPhones, while 20 people specifically had the iPhone 4. About 40 percent, or 103 people, said they had considered buying an iPhone 4.
Another 23 people owned Android devices, while 75 people said they had considered buying an Android-based phone.
Another 77 people owned BlackBerry devices.