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  • JP Morgan Predicts More Expensive iPhone on Verizon


    According to J.P. Morgan analyst Mark Moskowitz, Verizon customers excited about the prospective arrival of a certain Apple smartphone on the nation's largest mobile network might find themselves at a slight cost disadvantage over their peers on AT&T. Moskowitz predicts that Verizon may charge between $20 and $30 more than AT&T for the subsidized Apple iPhone price. Why? You can thank the higher expenses related to CDMA wireless components for this anticipated hike.

    "The key differentiator is the cost of CDMA-related components," Moskowitz wrote Monday in a note to investors. "While the acquisition price of the iPhone could be slightly more expensive for subscribers on Verizon, we think that there will be offsets, specifically network performance." Moskowitz is taking a cautionary position on whether or not Verizon's network is up to the challenge of a Verizon iPhone - a product arrival that could initially overwhelm the network with millions of new iPhone customers, especially if reports of unlimited iPhone data plans pan out.

    "If Verizon can avoid network performance issues during and after a potential iPhone roll-out, then we expect a multi-year growth spurt in U.S. iPhone sales," Moskowitz observed, noting that many AT&T iPhone subscribers are expected to leave their present carrier for the anticipated greener pastures of Verizon. Corroborating that claim is analyst Gene Munster with Piper Jaffray, who also chimed in Monday to say that AT&T will likely sell six million fewer iPhones this year as a direct result of Verizon's non-exclusive acquisition of the iPhone.

    Barron's
    This article was originally published in forum thread: JP Morgan Predicts More Expensive iPhone on Verizon started by Michael Essany View original post
    Comments 67 Comments
    1. CX3NT3_713's Avatar
      CX3NT3_713 -
      I like AT&T better,,, it just feels rite
    1. jamriman's Avatar
      jamriman -
      Quote Originally Posted by Nielsenius View Post
      I completely agree. It's going to be hilarious when the AT&T vs. Verizon iPhone network speed tests come out. I once tried to load the Apple website on a Droid. It took about a minute. That's a good 4x longer than my iPhone.
      More Wi-fi hotspots will solve that problem.
    1. stylth's Avatar
      stylth -
      honestly though, if you 'really' have traveled in the US, you'll realize that att only have edge service in more rural areas .. i have to admit too that att's 3g service is expanding very rapidly, and the quality have improved within the last 12 months ... 98% of the time, i am in the 3g coverage area, but that 2% of the time, really gets on my nerv ..

      versus verizon, they have great data coverage even in the eastcbums... then again, if you cant do voice & data simul will be a deal breaker for me ...
    1. jdm.accord's Avatar
      jdm.accord -
      Just announced pricing is the same as AT&T. Told you this "analyst" was off his rocker.
    1. saunupe1911's Avatar
      saunupe1911 -
      They also announced that you can't use voice and data at the same time. Thats horrible. This means your GPS app can't get the latest directions while you are on the phone.

      This is a total deal breaker. Why would someone from AT&T switch? For a supposedly a better network? That would be so stupid.
    1. efi2nr's Avatar
      efi2nr -
      Verizon is doing $30 for unlimited data (5g) and letting customers have the hotspot feature. Now what about FaceTime? If they let FaceTime work on 3G too AT&T will have to step up and do something. ALL of us on AT&T need to start calling and complaining about the lack of unlimited (5g) with AT&T. My family was grandfathered in on the unlimited deal but many of the peoples iPhones I work on are not and AT&Ts curent data plan is a joke.
    1. EskimoRuler's Avatar
      EskimoRuler -
      Having already read the post about the new verizon phone, I would think that verizon would not do this to compete with AT&T. Would be hard to tell a person that the phone cost more because of the components that go into it