Tuesday, June 29, 2010

iPhone May Be Coming To Verizon

As reported on Fox News today and Bloomberg, it looks like the Apple iPhone 4 is coming to the Verizon Network in January 2011.  The Wall Street Journal reports the iPhone CDMA version will start production in September.   But this would not be the first time that such rumors have been floated around.  Let's look at some of the implications of an iPhone on the Verizon network.

1. One has to wonder how this will affect AT&T apart from the obvious -  losing its exclusivity.

2. AT&T changed its unlimited everything package to a more metered system based upon consumption of data.  This begs the question of what will Verizon do about its unlimited package and, or, will this be more competitive than AT&T?  In that respect, Verizon could really turn up the heat on AT&T.  

3. What about retention of subscribers at AT&T's end?  Will the possible loss of subscribers in droves mean that AT&T will revert back to a more consumer friendly data/voice plan?  

4. Are we likely to see more iPhone sales in aggregate?  Absolutely, even though the Verizon network is not really 4G ready as is Sprint.  (Verizon has 93 million customers and heavily investing in rolling out 4G networks.)  The 4 G network had better be in place by the time the iPhone is launched on Verizon, otherwise  you will not really experience the features  of simultaneous voice and data.  

5. What about Android sales?  Well Google Android has been garnering popularity in the market and a slew of Android phones are expected to be launched throughout the rest of this year, especially the much talked about Galaxy from Samsung.  This strategic move by Apple to distribute on the Verizon network is a smart move against Android getting too far ahead in terms of dominance.  

For all the criticism regarding AT&T buckling under the demand caused by a surge in iPhone subscribers, expect a similar experience if you are a Verizon user.  It's inevitable. The iPhone is already a phenomenal success, in fact the biggest success Apple has had so far with 1.7 million sold in the first three days.  

Competition is always good for the consumer.  Having more than one phone provider sell iPhone will only be a good thing for Apple and us, the consumer. 


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