Saturday, January 8, 2011

Let's not go overboard about a Verizon iPhone

Rumors are everywhere since Verizon announced a press event this coming Tuesday (1/11/11 @ 11am) that the long awaited Verizon iPhone will finally be ours. As a current Verizon BlackBerry user I am excited to hear the news and long term will make the switch but the hype surrounding this news may end up being less of a win for Verizon than some think.

First off, many corporate users are on the Blackberry because it is still the better choice for typing longer messages. Also, the majority percentage of organizations using enterprise MicroSoft Exchange (the #1 email platform) are not yet able to support seamless iPhone integration. Only with Exchange 2010 are companies able to consider adopting support and that process will take time.

As for AT&T, I doubt they are overly concerned with Verizon getting into the game. The biggest reason they aren't worried is because their existing footprint in the market is so large. Why would an existing iPhone user go out and purchase a new phone (AT&T and Verizon operate on different technologies)? Some would argue for better cell service and while folks in some areas complain about AT&T's cell service the reality is there are plenty of places where service is as good or better than Verizon. Let's face it, they obviously knew this was coming eventually. When the iPhone 4 was release AT&T did a smart thing by offering existing customers a $199 upgrade with the catch of a renewal that included a long-term contract.

All this being said will some folks switch from AT&T or become first time iPhone users? Yes but I will bet it will be years before Verizon makes a significant dent in the space. And who knows what the latest device will be by then.

1 comment:

  1. Because it really doesn't cost much to switch and the plans are the same and the at&t network sucks in the bay area and new york.

    why doesn't it cost much to switch? I bought my iphone4 for $199 w/new two year contract. But the early termination fee is only $325 - $10/month = ~$250. I can sell my old iphone4 on craigslist for at least $450. It's a wash. I might even pocket an extra $20-$50.

    Now this might not be the most obvious math right now, but given
    the high demand for the product and the real hate people have for at%t,
    I'm sure we'll see a few articles in well traffic'd places to this effect.

    The other thing is that if the verizon network works like it should,
    people will see that it isn't impossible to run a network that works.