A new study released recently shows that the iPhone is paying off big for both Apple and AT&T. According to the study users of the iPhone are very satisfied despite the phone bill that increases by an average of 24%.

However, the report points out that for long term success Apple has to reach out to groups other than early adapters and Apple enthusiasts. Survey respondents show that 75% of iPhone users are previous Apple customers and young early adapters. The survey also shows that about 40% of iPhone users say that the phone can’t display all the websites they want to visit. Some users also want changes to the device such as a larger screen and a thumb keyboard.

Some key reports show that the iPhone is expanding the smartphone market. Nearly 50% of iPhone users replaced conventional mobile phones and 40% replaced other smartphones. Email is the top function for the iPhone with about 70% saying they check email once per day. About 60% of those surveyed said they surf the net on the iPhone daily. The iPhone also drove carrier switching with about half of iPhone users saying they changed to AT&T to get the iPhone.

via Rubicon.