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12-14-2010, 08:20 AM #1
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.
12-14-2010, 08:54 AM #2
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.There is nothing so useless as doing efficiently that which should not be done at all.~Peter F. Drucker
12-14-2010, 09:26 AM #3
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.
12-14-2010, 09:30 AM #4
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
12-14-2010, 09:39 AM #5
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".
12-14-2010, 10:02 AM #6
12-14-2010, 10:10 AM #7
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
12-14-2010, 10:19 AM #8
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...
12-14-2010, 10:39 AM #9
12-14-2010, 10:50 AM #10
Simultaneous voice and data is a big plus for ATT. I wonder if AAPL has a hardware trick for VZ to simulate that.
12-14-2010, 10:51 AM #11
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12-14-2010, 10:51 AM #12
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...
"Always remember your special and unique!"
12-14-2010, 10:51 AM #13
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.
12-14-2010, 10:54 AM #14
12-14-2010, 11:03 AM #15
12-14-2010, 11:11 AM #16
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12-14-2010, 12:05 PM #17
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.
12-14-2010, 12:32 PM #18
12-14-2010, 01:06 PM #19
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I once prayed to God for an iPhone, but quickly found out He didn't work that way...so I stole an iPhone and prayed for His forgiveness.
A dog is the only thing on earth that loves you more than you love yourself. - Josh Billings
12-14-2010, 01:49 PM #20
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.
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