Monday, January 10, 2011

What does the Verizon iPhone mean to AT&T?

The iPhone is a revolutionary iconic mobile phone. And it is selling real fast, especially in the US. The millions of handsets sold in the US alone are profiting carrier AT&T. Since the iPhone is exclusively available on the AT&T network, the company is surely getting thousands of customers only because of the phone. A lot of people are switching to AT&T for the iPhone, even though AT&T is the 'worst' network according to a survey. But now, the iPhone is coming to Verizon. What does this mean to AT&T?

TekZilla Daily from CES report that Verizon is holding a press conference in just a few days for "an iconic presales event". Watch the video below:

No doubt, they are announcing the iPhone coming to their network. But how big a hit will AT&T take from this, and how much will the iPhone succeed? 

Effect on Apple
A new network means new customers. The iPhone is still selling like crazy on just AT&T. But there are still people who love Verizon and won't switch over. If the phone is coming to a new operator, the range of potential customers for Apple will widen a lot. AT&T and Verizon are the top operators in the country. A phone exclusively available on both is a huge boost for Apple.

Effect on AT&T
Because of the iPhone's exclusivity with AT&T, the operator has huge subscribers. As I said earlier, people are switching over from other networks. As the survey (link at the beginning of article) showed, people hate AT&T. They probably subscribe because of the iPhone. I know I'm making generalizations, but there are surely loads of people using AT&T for the iPhone.

The Consumer Reports survey also revealed that Verizon was the best network for contract service. When the iPhone comes there, tons of people will switch to Verizon instead of AT&T and the latter company is going to lose a lot.

So in effect, everything seems amazing for Apple. AT&T needs to make its marketing division work harder. Maybe advertising will do the job, maybe something new, something different.