Apple Inc. has recently started producing a CDMA capable iPhone, which is a different kind of wireless technology used by Verizon Wireless. Verizon is the largest U.S. mobile-phone company and will start selling Apple Inc.’s iPhone next year. This put an end to AT&T Inc.’s monopoly on the dominant smartphone in the U.S. This new CDMA compatible iPhone device is rumored to be offered to customers in January.
This iPhone will be very similar to the iPhone 4g in that the look is the same. Actually the only main difference in the phone will be a chip inside that allows the phone to run on a separate network. Furthermore there are continued rumors about Apple Inc. producing an even newer iPhone model but details on this are still unclear.
If this is to show anything it is that Apple Inc. perhaps for once is on the defensive side of things and is now reaching out for new consumers. Maybe other smartphones such as the Droid by Google, which is also offered by Verizon, is becoming more popular because of AT&T’s unconvincing service. This could also cause a huge shift in consumer’s alliance with AT&T because they have always had the exclusive iPhone and now that another competitor is offering it AT&T could possibly see a huge change in its customers starting in the next quarter.
Sources:
http://online.wsj.com/article/SB10001424052748703735804575536191649347572.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
http://www.bloomberg.com/news/2010-06-29/verizon-wireless-said-to-start-offering-iphone-ending-at-t-s-exclusivity.html
This is a really interesting article. I have many friends who changed their network services in order to get the iPhone when it first came out (switching from Verizon to AT&T). Now that Verizon is creating more competition in the market, do you think people will revert back to Verizon? However, if it looks exactly the same, will more customers buy from Verizon? I mean nobody will tell the difference besides as you mentioned "the chip inside is what is different". Will that really make a difference in consumers choices?
ReplyDeleteI, like Maria, constantly remember people "Jail-Breaking"or "Brick"ing their phone just to get T-Mobile or Verizon coverage during iPhone's first few generations. Upon research about this article (because this is a VERY interesting story to me, and you made a great post on it), I found from this article that the Verizon iPhone was not spoken about in a recent press interview, but that Verizon will again have a more vast coverage by 2012. To me, this seems like Verizon is prioritizing themselves to have a near national coverage to then make service for the (pardon the cheesy wording) "ViPhone" incredible. If it does come out after 2012, do you think that stocks will dip a little, only because people might become impatient with the wait of their new "Viphone?"
ReplyDeletehttp://www.quickpwn.com/2010/09/verizon-iphone-not-coming-soon.html
Nice post, Russell. Do you think Verizon's 4G expansion will help draw in more new iPhone/AT&T customers who might have otherwise been hesitant to make the switch?
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