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  • Why Verizon Needs the iPhone More Than Apple Needs Verizon


    A new analyst report shows an alarming drop in Verizon's smartphone sales beginning last summer, just as iPhone 4 sales took off, and all Verizon smartphone sales severely lagging the iPhone. The numbers, which got big play on Fortune and the Wall Street Journal's All Things Digital site, may indicate why Verizon is now ready to play ball with Apple, after years of turning them down.

    ITG Investment Research analyst Matthew Goodman's report underscored the well-known fact that Verizon has bet heavily on Android, showing that handsets based on Google's OS made up 80% of smartphone sales last month, with 46% of them being Motorola Droids. As recently as two years ago, RIM was bragging about how the BlackBerry was Verizon's best-selling device, but now they're below 20% at the largest US carrier. These numbers - which are apparently based on independent retailer reports and are not a leak as was initially reported - were also looked over by Horace Dediu at asymco, who uncovered another interesting trend. In the third quarter of this year, AT&T not only sold more iPhones than Verizon sold smartphones from every manufacturer, it also outsold them by a factor of nearly two to one. Fewer than 3 million smartphones of any kind were activated on Verizon in the third quarter, while AT&T activated more than 5 million iPhones.

    This fact, probably more than any other reason, may have led Verizon to drop its hard-line stance and begin negotiating in earnest. According to most reports, Verizon came to the table in August of this year, right as smartphone sales began their tumble. A recent study indicates that Verizon may double its smartphone sales by bringing the iPhone on board. Since the carriers make their money in service fees, not handset sales, this would represent significant income for years.

    Source: AllThingsD
    This article was originally published in forum thread: Why Verizon Needs the iPhone More Than Apple Needs Verizon started by Paul Daniel Ash View original post
    Comments 38 Comments
    1. ajones330's Avatar
      ajones330 -
      So its safe to say Big Red will do whatever it takes to get the iPhone on their network. Android has hit its plateau on their network.
    1. saunupe1911's Avatar
      saunupe1911 -
      Why is everyone surprised? This was inevitable. Verizon was banking that the iPhone 4 would suck or iPhones would lose their luster. On the other hand, iPhone 4 ended up being the best smartphone of its generation. Only the EVO can be named in the same breath and its on Sprint.
    1. saunupe1911's Avatar
      saunupe1911 -
      I'm also really anxious to see how an iPhone 4 would perform on Verizon's network. I want to see if their bandwidth can back up all the hype.

      I also believe the next iPhone will be 4G (probably LTE) and at least 4 inches long. As of matter of fact, I would bet a large lump sum of cash on it
    1. cpkirkley's Avatar
      cpkirkley -
      I really hope that they start carrying it so these bandwagon jumpres can can finally leave. AT&Ts problems come from a severely overloaded network, and People that stay with AT&T after Verizons release would really reap the benefits.

      Our 3g is at times faster that T-Mobiles "4G".
    1. saunupe1911's Avatar
      saunupe1911 -
      Quote Originally Posted by cpkirkley View Post
      I really hope that they start carrying it so these bandwagon jumpres can can finally leave. AT&Ts problems come from a severely overloaded network, and People that stay with AT&T after Verizons release would really reap the benefits.

      Our 3g is at times faster that T-Mobiles "4G".
      EXACTLY!!!

      I'm not giving my simultaneous talk and data feature for no one. I've been using that on AT&T since the original Samsung Blackjack.
    1. wolverinemarky's Avatar
      wolverinemarky -
      wow thats very sad news for android, the iphone outsold all smartphones on verizon 2-fold thats pretty shocking. oh well welcome to the family verizon make sure u pump those iphone crush android commercials lol
    1. cpkirkley's Avatar
      cpkirkley -
      LOL at the thought of watching Verizon Commercials that bash android.

      although on the flip side, once it hits you should be able to get the Incredible or the Droid X for like 69 cents...
    1. w00master's Avatar
      w00master -
      Quote Originally Posted by cpkirkley View Post
      LOL at the thought of watching Verizon Commercials that bash android.

      although on the flip side, once it hits you should be able to get the Incredible or the Droid X for like 69 cents...
      While that would be interesting and definitely a turn about change, I doubt you'll see these sorts of ads coming from Verizon. You'll see them for Apple but not VZW.
    1. vedavis's Avatar
      vedavis -
      Simultaneous voice and data is a big plus for ATT. I wonder if AAPL has a hardware trick for VZ to simulate that.
    1. rockness724's Avatar
      rockness724 -
      Quote Originally Posted by DRFP View Post
      for some reason At&t did not keep cingular as the name and used the tarnished At&t name........... I think all along thats why some jump to hate them, before they Bought Cingular, At&t rented time with others and it was terrible it has gotten better I have even had decent customer service, some people expect way too much at times, these people should not be kissing your butt any more then you do when you work.
      I agree!
    1. thetoothfairy's Avatar
      thetoothfairy -
      This is the reason that Verizon has buyers regret! What a awful feeling it must be! A stupid move back then for Verizon! Goes to show you who the real business was back then...
    1. FlyingJoey's Avatar
      FlyingJoey -
      You mean iPhone 5. It wouldn't make any sense to re-introduce the iPhone 4, when the iPhone 5 is right around the corner.

      Unless Apple launches the iPhone Universal (aka iphone 5) in Feb. and it's a CDMA/GSM/WiMax/LTE device. A phone like that would destroy AT&T.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Quote Originally Posted by FlyingJoey View Post
      You mean iPhone 5. It wouldn't make any sense to re-introduce the iPhone 4, when the iPhone 5 is right around the corner.

      Unless Apple launches the iPhone Universal (aka iphone 5) in Feb. and it's a CDMA/GSM/WiMax/LTE device. A phone like that would destroy AT&T.
      Once Apple is out of contract with AT&T they might... however I don't think Apple would do that just yet to AT&T. They have been working pretty close all of these years together... just my thought!
    1. cubanito37's Avatar
      cubanito37 -
      Quote Originally Posted by DRFP View Post
      Verizon and At&t both suck I had much better service in the UK
      You know those planes fly the other way also. All carriers have issues, all of them everywhere!
    1. ty22's Avatar
      ty22 -
      Quote Originally Posted by FlyingJoey View Post
      You mean iPhone 5. It wouldn't make any sense to re-introduce the iPhone 4, when the iPhone 5 is right around the corner.

      Unless Apple launches the iPhone Universal (aka iphone 5) in Feb. and it's a CDMA/GSM/WiMax/LTE device. A phone like that would destroy AT&T.
      I would love WiMAX on an iPhone but I see WiMAX in particular never happening.

      Quote Originally Posted by DRFP View Post
      lol I like both Iphone and Android,

      Its BB I want to see crushed as Palm has been

      Black Berry is pitiful with 15,000 apps
      Palm won't be crushed for long. If you don't know, HP bought them (yes I know their computers are crappy) but they are a gigantic tech company. They won't interfere with Palm as a business, they are just throwing tons of cash at them. WebOS is a fantastic OS and HP is throwing everything behind it. Palm will be back soon.
    1. athleticswimmer's Avatar
      athleticswimmer -
      I can't wait to see the iphone on verizon although I really want it on t-mobile

      haha was thinking about those Verizon Droids commercials were at the end they say "DROID"- in a robotic voice. I wonder what kind of commercial there gonna do with the iphone once it's on verizon HINT: "IPHONE"- in a robotic voice.
    1. Silverado87's Avatar
      Silverado87 -
      My opinion is if Verizon goes to iPhone....great. More power to them. But how many HTCs are made and DROIDS are made and how many of them were announced iPhone killers?! They shouldve seen this coming a long time ago
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by DRFP View Post
      for some reason At&t did not keep cingular as the name and used the tarnished At&t name........... I think all along thats why some jump to hate them, before they Bought Cingular, At&t rented time with others and it was terrible it has gotten better I have even had decent customer service, some people expect way too much at times, these people should not be kissing your butt any more then you do when you work.
      The AT&T name dates back way farther than Cingular and cellular/mobile phones, for that matter. They had a horrible cellular network when they started out. It has improved a great deal since then. Not saying it is good, but you should have been on AT&T about 10 years ago. Now THAT was god AWFUL!

      Quote Originally Posted by thetoothfairy View Post
      Once Apple is out of contract with AT&T they might... however I don't think Apple would do that just yet to AT&T. They have been working pretty close all of these years together... just my thought!
      Right... Apple always plays nice with their "friends". The only problem is that to be their "friend" you have to make them more money than anyone else can. If not, you are the enemy...
    1. vantheman169's Avatar
      vantheman169 -
      As much as I hate Verizon and Sprint i think there should be an iPhone for every carrier, uncluding T-mobile. The more the the better. Less strain on AT&T's network and people who LOVE Verizon can go to their crappy *** service and Sprints Crappy *** customer service. Competition would be great for everyone who owned an iPhone as far as carriers and plans.
    1. EagleyeSmith's Avatar
      EagleyeSmith -
      I'm glad to see that Verizon isn't really selling as many smart-phones. They needed to be brought down a few notches. I must say. I'm surprised. I know that the iPhone is the best smart-phone out there. However, let the media, w/all the Android craziness and numbers, you would think that Apple & AT&T just suck so bad. I personally don't have an issue w/AT&T. I just hope that in the end, AT&T will always have the iPhone. Regardless of whether it goes to Verizon, T-Mobile, or Sprint. AT&T is the carrier for me, and the iPhone will always be my cell phone. Word.