In a move that many feared would come true sooner rather than later, Verizon Chief Financial Officer Francis Shammo suggested on Tuesday at an investors conference that Verizon will soon end unlimited data plans for its recently acquired iPhone. The demise of unlimited plans may transpire as soon as this summer.
Verizon Wireless allows unlimited Web-surfing for $30 a month for users of its version of the popular Apple phone. But this will change in the coming months.
Following Shammo's remarks, Credit Suisse analyst Jonathan Chaplin told Reuters that "I would take that comment as a pretty strong signal there's an iPhone refresh coming to Verizon in the third quarter." Chaplin, however, says investors may be rightfully apprehensive at this point with regard to another iPhone release, especially since many customers would likely be upset that their new Verizon iPhone will be "out of date" only months after its debut. "You'd be worried there'd be a backlash from consumers. What they don't want is for Verizon to be put in a position where its forced to offer free trade-ins," Chaplin says. "There's some risk of that."