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Verizon May Not Need The iPhone
Big red's slowly leeching smartphone customers from AT&T without it
by Karl Bode Monday 19-Jul-2010 tags: competition · business · wireless · hardware · alternatives · consumers
According to the New York Times, despite not having the iPhone, Verizon's been slowly leeching smartphone customers from AT&T for the last two years. Verizon's share of the smartphone market has jumped from 20 to 26 percent since 2008, while AT&T's smartphone market share has dropped from 45 to 40% during that same period. What's more, Verizon is only paying $300 for each Android, BlackBerry and Palm phone sold, while AT&T pays Apple at least $450 for each unit sold. There's no doubt that having the iPhone exclusive helped AT&T, but there's also no doubt that their inability to provide a network that can handle the device hurt AT&T. The real question is, if AT&T's bleeding subscribers while they have the exclusive, what happens when that deal expires?

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psiu_nws

join:2004-01-20
Plymouth, MI

AT&T pays AT&T?

Might want to fix that

Also...on VZW with a Droid now. Might switch to a different phone, or a different carrier, but it won't be the iPhone or AT&T in either case.
--

--psiu

cableties
Premium
join:2005-01-27
Reviews:
·Verizon FiOS

Re: AT&T pays AT&T?

Why? Do you not like the Droid? Unhappy with carrier? What up?

I question because I am considering the Droid 2 (August release) and staying with VZW.

Too bad the rumors of a 1/2011 iPhone on VZW are still rumors. But I know ATT's (exclusive) contract with Apple is up on midnight 12/31/2010...
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: AT&T pays AT&T?

another random date. There is no hard date that anyone know of. It's all "talk".

raw
War Eagle
Premium
join:2001-01-17
Madison, AL
Out of curiosity, why the Droid 2?

Do you have any interest in running custom ROMs/tinkering with your phone?

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT

You're right..Verizon doesn't need the Iphone...

Have you gotten a look at the DroidX?

IMHO...there's nothing else out there to even consider when you do. I was in Walmart yesterday picking up a few things and passed by their wireless phone counter. My jaw dropped as I saw one on Display. It is so different and struck me as the difference between someone having an old 17inch monitor on a desktop versus a 22 Inch flat panel.

And what's more, while the screen size is and looks HUGE...the phone itself isn't. It's the way they make use of that real estate. I pulled it from it's display as far as I could given the security cord attached and compared it side by side with others and it's not much wider at all. I put it up to my shirt pocket and it would fit in there very nicely.

This is a whole new ballgame and a game changer in the industry. The specs and speed of the processor ...really stunning display and all the possibilities that now surround this to capture a market that really isn't there at all right now.
This is a portable device you can watch video on and enjoy it and I think is what the future is really all about because it captures the best of the mobile market..something between the smaller displays and carrying a notebook around.

Apple doesn't need to worry about the iphone antenna..because doing so isn't going to fix what is really ailing them.

And what is ailing them..is called DROIDX.

~Rick
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
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Re: You're right..Verizon doesn't need the Iphone...

Are you using Verizon right now? If not, keep in mind that it's a rather expensive carrier these days...though you do get unlimited data with the smartphone plan (ahem, AT&T). That said, the Droid X is indeed an awesome device...kind of like the Evo 4G, but *maybe* with better battery life.

fcisler
Premium
join:2004-06-14
Riverhead, NY

Re: You're right..Verizon doesn't need the Iphone...

1) Root the EVO, install DamageControl
2) Charge fully until it says "Charged" and not 100%.
3) Let drain until automatically shuts off
4) Charge fully
5) Quit killing ANY apps or using ANY type of app killer

After a couple charges/discharges (they do not have to be a fully discharge) you will be amazed at the battery calibration and the ROM itself.

This phone EASILY beats my iPhone 3GS with heavy usage all day.

My issue with the DroidX is twofold: Motorola (ever since they required a DRIVER for the Razr to charge) and they have some IBM anti security on it.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: You're right..Verizon doesn't need the Iphone...

My Evo was defective...13 hours of pretty much no activity, no Bluetooth, no WiFi, drained battery. I think a lot of people are experiencing the same thing.

I'll get the Epic 4G when it comes out.
Necronomikro

join:2005-09-01
I have an android phone. It's completely stupid when it comes to freeing up resources.

I ended up not using any app killers, but, as I rooted it, I did kill several items from starting up (mostly Motorola items).

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12
I'm going to give that a shot. The EVO (the credit is really due to HTC's Sense UI) is absolutely stunning. My EVO 4G is the best phone I've owned so far ... if you forget the fact that 4G is useless on it because it can never get a 4G signal.

oavirusxm202

@insidemedia.net

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hottboiinnc See Profile

Yeah - but every Droid person I know carries their phone charger with them and complains about the lack of phone power - and the weight of the unit.

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: You're right..Verizon doesn't need the Iphone...

said by oavirusxm202 :

Yeah - but every Droid person I know carries their phone charger with them and complains about the lack of phone power - and the weight of the unit.
That is because you can do so much more with a Droid phone. For me, (having owned several "Droid" phones and several iPhones), it's well worth it.

The Droid lacks a few Enterprise control features in regards to Exchange that I hate, but overall, an Android phone with the Sense UI (personally) is a much more capable device, especially since it's not tied to the AT&T network.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4
said by iansltx:

Are you using Verizon right now? If not, keep in mind that it's a rather expensive carrier these days...though you do get unlimited data with the smartphone plan (ahem, AT&T). That said, the Droid X is indeed an awesome device...kind of like the Evo 4G, but *maybe* with better battery life.
»www.motorola.com/Consumers/US-EN···S-EN.alt
--
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Littleguy

join:2000-08-26
Sacramento, CA
"I was in Walmart yesterday"

That pretty much sums it up, doesn't it?

vpoko
Premium
join:2003-07-03
Boston, MA

Re: You're right..Verizon doesn't need the Iphone...

said by Littleguy:

'"I was in Walmart yesterday"

That pretty much sums it up, doesn't it?'
Actually, THIS sums it up.

PGHammer

join:2003-06-09
Accokeek, MD
Reviews:
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Heck, the *original* Droid has a seriously large screen compared to the Storm and S2 (VZW's previous touch-screen flagship phones) and DroidX is even larger there (Droid 2, however, is similar in size to the Droid). I don't need the DroidX (especially considering that I won't have to go Froyoless on the Droid), and I don't need that much larger a screen. However, even the Droid's larger screen and better display (24-bit color compared to 16-bit on the S2, and a better camera compared to the S2 as well) make the Droid (original, that is) a darn near fool-proof crossgrade (if you aren't using your S2 as en enterprise phone with BES).

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Told You So

I always believed that if Verizon wanted to offer the iPhone, it could and would move heaven and earth to make it happen. Verizon simply doesn't care for the iPhone.

Of course now that I've said that they are not going to sell it, they will start offering it.
--
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questionable

join:2005-10-18
Phoenix, AZ

Re: Told You So

I agree with you on this. I think the fact that Apple wanted to control to much when they approached Verizon is what caused the lack of interest.

cableties
Premium
join:2005-01-27
Reviews:
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Re: Told You So

said by questionable:

I agree with you on this. I think the fact that Apple wanted to control to much when they approached Verizon is what caused the lack of interest.
I think it was Verizon that wanted a lower-priced point on the phone, AND more control over app profits (like a Verizon-like iPhone App in iTunes that dibs to VZW some profit).

Remember Apple makes $$$ selling phones, not so much on Apps. Verizon wants $$ for plans, minutes, ETF, taxes, subsidies, and anything else they can.
caco
Premium
join:2005-03-10
Whittier, AK

1 edit

AT&T underestimates iphone loyalty

Local radio was interviewing some folks at Apple store who had heard of recent problerms with new iphone and consistent problem with AT&T network and they didn't give a fllip about either one, they still wanted their iphone. They asked them why and pretty much everything they said sounded straight out of an JOBs mouth. AT&T doesn't have that type of brand loyalty and while AT&T can act like the iphone isn't that big a deal if they lose it, they sure better hope that day never comes because those churn numbers aren't going to be very rosy the quarter after that happens.
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iansltx

join:2007-02-19
Golden, CO
kudos:2
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Where do you get the $650 figure from?

Where do you get the $650 number for what AT&T is paying Apple per iPhone? SOunds a bit high, considering the bulk in which AT&T is buying. Also, that would mean AT&T is taking a $350+ subsidy per phone, which is more than the $15 data plan makes over two years...

jgkolt
Premium
join:2004-02-21
Lakewood, OH

Re: Where do you get the $650 figure from?

the $15 plan does not include the cost of all the overages does it? and after iphone exclusivity AT&T will need to actually compete.
mAlfunkti0n

join:2003-12-16
Loveland, OH
said by iansltx:

Where do you get the $650 number for what AT&T is paying Apple per iPhone? SOunds a bit high, considering the bulk in which AT&T is buying. Also, that would mean AT&T is taking a $350+ subsidy per phone, which is more than the $15 data plan makes over two years...
Pretty sure the iPhone will destroy that cap on the $15 a month data plan just randomly checking email.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Where do you get the $650 figure from?

I've heard of people who stay under that cap. I wouldn't, but there are *some* people who would.
mAlfunkti0n

join:2003-12-16
Loveland, OH

Re: Where do you get the $650 figure from?

I know I wouldn't either. I'm thinking the majority who stay under the cap probably use their phone for calls and texts only.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Where do you get the $650 figure from?

In their homes on WiFi. I'm still getting used to my DX, but according to VZW, I've used 49 MB (8 MB was last night sending pics of my son to my wife on a business trip) in the two days of my current billing cycle. I don't have WiFi turned on. Granted a lot of the usage is me playing with my new toy and I expect usage to even out after a while...especially after I set it up on my wireless at home.

MovieLover76

join:2009-09-11
kudos:1
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Actually I know a lot of users, myself included who stay under the measly 200mb $15 plan, I'm on wifi all day at work and at home, I don't use push but have my email set to check every 30 mins. it really uses almost no data to check email, and this is with a corporate and personal email account, stream a few videos, browse some websites etc and I average about 150mb.
The cap does seems unreasonably low, but since I happen to be on wifi so much I'll take the $15 savings.

I like Android, but after using the iPhone for over a year I just don't like how unpolished it still feels, ease of use just trumps features in a smartphone for me

koolman2
Premium
join:2002-10-01
Anchorage, AK
I stay under the cap easily. I have a MiFi device that my local ISP offers for $20/month with unlimited use. Since I'm paying for it anyway, I might as well use it! I offload a bit of my usage, especially picture uploads and such with it.
wahoospa

join:2006-03-23
Charleston, SC

Verizon May Not Need The iPhone

I don't even need or want the iPhone. Just the common cell phone is fine with me.

David
Now accepting new patients
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join:2002-05-30
Granite City, IL
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Re: Verizon May Not Need The iPhone

said by wahoospa:

I don't even need or want the iPhone. Just the common cell phone is fine with me.
You and me both.... I may actually graduate to texting this year but I am not overly gagging to get there.
--
If you have a topic in the direct forum please reply to it or a post of mine, I get a notification when you do this.
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itguy05

join:2005-06-17

Karl's Inaccuracies Strike Again

Yet another inaccurate post by Karl.....

AT&T's churn is very low, about as low as Verizon. They are not "bleeding customers".

AT&T's network is fine - I've used it since 2005 and it's been good, as good as Verizon.

That being said I'm "evaluating" the DroidX as a replacement for my iPhone. Definitely NOT as polished as the iPhone but does a whole lot more. I've got 20-some more days to decide.

See 16 replies to this post
nfotiu

join:2009-01-25

Apple won some battles, but Verizon is going to win the war

iPhone will be nothing but a niche product in the US in a year or 2, with Android being the mainstream player.

Android would have never got off the ground if Apple went with Verizon as well. Everyone would have got an iPhone when they were the only game in town, and they would have been too invested in apps, drm'd movies, and the IOS to ever switch to Android.

Instead, many people stuck with Verizon until the Android phones caught up. Now that Android has a substantial and fast growing user base, there is no stopping it.

It will be the droid users that are vested in all their Android goodies that will not move to Apple if that mythical Verizon iPhone day ever comes. Seems like every month that goes by, means a few hundred thousand more android converts, and a few hundred thousand less Verizon iPhone potential buyers.

It's only going to get worse. Verizon will likely have an LTE, 2 core, super AMOLED, Android 3.0 phone before the next iPhone upgrade.

Verizon took some hits, but now Apple needs Verizon, way more than Verizon needs Apple.

See 6 replies to this post
nnaarrnn

join:2004-09-30
Nitro, WV

Is sick

of hearing about the iPhone. Only sheep use them.

See 27 replies to this post

MovieLover76

join:2009-09-11
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Needs and wants are totally different beasts

Do they NEED the iPhone, probably not.
But if Apple finally decided they wanted to let the lease off of the iPhone in order to realize higher sales, both Verizon and AT&T would still benefit.

Based on the number of former Verizon customers who are now AT&T iPhone customers, but all wish the iPhone was on Verizon I think you'd see a lot of defections back to Verizon when contracts expired and I think that 40% of the Market for AT&T and 26% for Verizon could easily be swapped.

It wouldn't be so good for Android sales, I know a lot of droid users who are droid users because they don't want to put up with AT&T, not because they think Android is superior, though granted the geekier end of the spectrum friends do prefer android and they shun me for loving my iPhone lol.

MovieLover76

join:2009-09-11
kudos:1

Re: Needs and wants are totally different beasts

I meant Verizon and Apple obviously, not AT&T they would not benefit, though their network might get pretty fast for the minority of users who didn't go back to verizon

Dagda1175

join:2001-06-17
Goleta, CA

When Verizon has the iphone

...I think people will finally realize the weakness of the hardware itself. The connection problems that plague AT&T will "suddenly" occur on Verizon.

MovieLover76

join:2009-09-11
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Re: When Verizon has the iphone

The Iphone is already used on many many other providers without the serious problems that AT&T has with the iPhone, so that idea is somewhat dis-proven already, the hardware is generally good, the death grip issue on the iphone 4 being an obvious exception.
flycuban

join:2005-04-25
Homestead, FL
not if Verizon has LTE already out by then.

ThermoNuke

@pldi.net

Droid X / Verizon convert

I actually switched from US Cellular (Superb carrier IMO, awesome 3g coverage in my state) to Verizon just to get the Droid X. (US Cellular is SOooo slow on getting modern handsets)

So far I LOVE my Droid X. I havent put it down since I bought it and havent looked back. My girl used to gloat about her Iphone over my Blackberry Tour, now its a shockingly touchy subject when I bring up my phone over hers. How ever, that doesnt make it a great phone...

I agree with many. ATT's network is trash. At least in the Midwest. (Oklahoma for sure). We have so many problems with her phone dropping calls, static when not talking, calls not taking, etc etc etc etc.. And she lives in a fairly large city with good ATT coverage. Yet on my CDMA phones, US Cellular for work and Verizon for play, I've got service everywhere and you would be hard press to put me in a situation where you couldnt hear me or i couldnt make a call.. and Oklahoma has alooot of country side.

With Verizon, if I leave my home county, I spend alot of time in 2g coverage. But to me, thats honestly fine. Apps still download fine and timely, the 4.3 inches of screen make it a blast to use, and I can hold it with my left hand!! Honestly though, it gets great reception.

After seeing the innovations being made on the Android front, I truly believe iPhone has gone strictly niche. The Evo and Droid X trump the Iphone on SO many features. Apple cant even use Apps in its defense anymore, have you seen the google market lately? Holy shit.. And developers can do what they want without much restriction.

Anyways, thats my two cents for anyone who needs the change. I love my Droid X and so far I love Verizon's network and the all around simplicity of doing business with them.

200$ for a 4.3 Inch touch screen phone with a 1ghz cpu, dedicated graphics, awesome 3d to boot, a seemingly infinite amount of apps, HDMI out, HD Video and Pic recording 24Gigs of memory, built in wifi hotspot, and on a reliable network.

Fuck Yea.

I mean...Its got a frickin Metal Detector app!!
I dont see how anyone could take an Iphone over any good droid phone. (Evo, Incredible, Droid, Droid X)

But in the end... Its all about taste, and what people want.
Thats all that really matters.
Liberty

join:2005-06-12
Tucson, AZ

Moto Droid

I got tired of waiting for a Verizon iPhone and got the Moto Droid shortly after release

I like the phone very much and Verizon is the only ISP in southern Az that has the coverage I need to run my business

As satisfied I am with my Droid, I will switch to the iPhone about same day they run on Verizon

I am a long time Mac user and the integration between the phone and OS10 makes it a no brainer for me

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