Verizon branded Apple iPhone to be introduced just after CES; what will happen to AT&T?

Verizon branded Apple iPhone to be introduced just after CES; what will happen to AT&T?
According to Bloomberg Businessweek, Apple will be introducing a Verizon branded Apple iPhone before Valentine's Day. The story quotes an Apple insider who knows all of the plans but is not authorized to publicly release the details. He says that in early January, just after the CES show, Apple will show off the Verizon version of its touchscreen phone. The report says that Apple will then host one of its "flashy product introductions" for the device before February 14th.

The question is, what will be the effect on AT&T. Some analysts predict that the cost and hassle of switching carriers mid-contract will not be worth it.  Some believe that the prediction of droves of AT&T customers switching to Verizon is way off base. Charles S. Golvin, who works for Forrester Research says, "I'm sure some AT&T customers are sufficiently frustrated to switch, but the vast majority are at least happy enough." UBS analyst John Hodulik predicts that AT&T will sell 8.8 million Apple iPhones in 2011, down from 15.6 million units sold this year. He also estimates that Verizon will sell 13.3 million iPhones next year. He breaks that figure down by saying that 2.3 million of the Verizon sales will come from AT&T customers making the switch. About 10 million will be Verizon customers switching from another platform, and the balance will be from those leaving other mobile operators.

The damage to AT&T's financials might not be as deadly as some think. The carrier is not going to go under if it loses exclusivity on the Apple iPhone. Even if 6 million customers defect, the revenue would amount to just 10% of the estimated 2011 revenue for AT&T wireless, according to UBS. That also amounts to just 4.8% of the entire company's 2011 sales.

Bloomberg Businessweek says that AT&T is not just going to be sitting back, crying about the lost revenue. The carrier plans on pushing alternatives to the Apple iPhone such as handsets loaded with the Android OS says former Verizon executive Mark Lowenstein, now a managing director of consulting firm Mobile Ecosystem. So far, of the nation's top four carriers, AT&T has embraced Android the least although it has been strongly pushing handsets using the new Windows Phone 7 OS. The jury is still out on how successful that platform will be.

And what about the other half of the the nation's top four carriers? Bloomberg says that there are no plans for either Sprint or T-Mobile to introduce their own iPhone which leads UBS analyst Hodulik to predict that Sprint could lose 650,000 customers while T-Mobile could be 950,000 customers lighter in 2011 as a result of the Verizon branded device.

source: BloombergBusinessweek

Related phones

iPhone 4
  • Display 3.5 inches
    960 x 640 pixels
  • Camera 5 MP (Single camera)
    0.3 MP VGA front
  • Hardware Apple A4, 0.5GB RAM
  • Storage 32GB,
  • Battery 1420 mAh
  • OS iOS 7.x



71. Verizon customer reps sucks unregistered

I am a droid user (dell streak ATT) and I went from the 1st,2nd, and 3rd gen iphones and being on the android you see an "open play ground," while on the crap iphone you see a padded room unless you jail break it. I was also on verizon and I don't know how in the world people think they care for the customer. I had went to three different verizon stores to pay a bill and each time I went (this is a span of a year) they said they did not get my payment (I payed check and one time cash) and I was doing my payment with a physical person. I got charge double and they would not do anything to help me. What kind of bs is that when I clearly showed a recite and a bank statement showing that the money was taken? All in total I ended up paying 800+. Yeah verizon can kiss my butt. ATT all the way. I'm not the only one all of my 50 contacts were verizon and they switched to att and the reps help you. My messaging plan got accidentally taken off by my father and my brother did 1898 texts in three days and I got charge up the butt but instead of being like verizon they didn't charge me and I got a normal bill of 231 like I should. Verizon would say "not my problem. I can't wait till verizon has customer calling them 24/7 complaining about their call quality hahaha Enjoy the apple crap. I'm just gonna watch as I play with android and laugh.

69. lawlzroflz unregistered

red iphone will be coming to verizon why ells would they make it a big deal to get it done be4 Feb14

67. bone unregistered

gemini, yes you are right. ATT 3g is faster. the speed difference is barely noticable first off. Second, if you live in an area where 3g is available and you're not on the road or traveling thats great for you. But when you compare 3g coverage areas between VZW and ATT theres no competition. When you go onto ATT site they mislead you showing where data services are available. Then when you dig deaper you realize the coverage area is inferior to VZW. I work in the city but live in the live out in the country. My friend is still able to use his iphone but it really reminds me of dial up days. 2g is horrible whereas my droid x and the amazing 3g coverage i have, i have no issues connecting to the web. pretty much out here droid x t-bags the iphones data connection. in the city when loading a page he might and i mean might have a 1 second advantage. for me.... ill wait the extra second for the best network

66. DrOOOOiD! unregistered

Im not looking forward to the iPhone rush, "IF" it dose happen. Working for Verizon myself I look at it from the otherside of the glass. This phone meens higher commission tiers which meens less money for ME and more for VZW. They'll expect us to sell a crap load of these phones and pay us less for it. Also, (like that guy said) the 30 day return policy is gonna kill us. I know the first month we have it we'll lose more money that we'd make. And,not to mention the 3G bog down. I realy dont think it will come out 4g if it dose. That MIGHT happen latter on,i meen come on,how long did it take Apple to get to this point? So if it dose happen i just hope its not a mad,"running of the bulls" type stiuation. Droid is awsome anyway. GO DROID!

61. therygy

Posts: 94; Member since: May 24, 2010

Verizon constumers complain so much about the iPhone and they say that it is horrible and the platform is boring and how Android is soooo much better. Why does Big Red want the iPhone soo badly, if it apperently sucks and is really boring? Look who is begggging for the iPhone - Verizon. This just proves how AT&T is the best. Verizon constumers are brats and two faced. AT&T constumers are loyal and they wont leave AT&T for Verizon, becasue Verizon sucks.

63. WhoNeedsLogic unregistered

I see you're comment here and I tried to follow the logic of it, but I couldn't find any in it. ???

64. Youre All Retards unregistered

Verizon ISNT begging...Verizon turned down the first iPhone contract in the first place before it was offered to AT&T...Apple NEEDS Verizon because they are being outsold by Android...Youre an idiot

65. XxVerbalxX unregistered

your comment was so stupid i had to reply. 1. verizon is well known as the nations #1 wireless carrier. they have more customers than at&t. apple needs them, not the other way around. they are not fighting from bottom here 2. Verizon earlier this year pretty much told apple it was up to them and they didnt need the iphone (if you are to believe phonearena...) 3. only reason verizon wants it is because of idiots like u. isheep jokers who dont know any better. i wish they would keep that crap of my network. 4. Speaking for myself, and i believe multiple verizon reps, i for one am going to do everything in my power to make the verizon iphone a huge failure. i will only sell it after pretty much telling the isheep they are making a huge huge mistake. every verizon rep has been trained for years to sell NOT an iphone. most of us dont want it dont need it and sure as fuck dont want to deal with the apple cult. id rather have them stay on at&t then have them here bitching about the iphone and not being able to troubleshoot a damn thing because apple is a buch insane nazis on protocol. so put that in ur at&t pipe and smoke it.

58. Fanboykiller unregistered

Apple willl introduce a CDMA version for China Mobile and the Asian market, so fanboys get you sorry ass wallets ready. Many has forgot that the contract in the US ends in 2012 documents proof that and neither bloomberg, phonearena, phonescoop, cnet and all those who kiss slow-rizon asses had shown anything to say otherwise so fanboys not yet meanwhile keep dreaming.....!!!!!!

57. Youre All Retards unregistered

I work for ATT and you all have got to be the best group of morons ever. FIRST OFF, the iPhone is GARBAGE and the only people that buy them are fanboys and people too pathetic to realize that ANY other smartphone offers the same features with better customer service options such as insurance, removeable batteries, no anttena issues, expandable memory and these type of basics. Also, Verizon's iPhone WONT be LTE, but that wont be Verizon's fault. Apple will do the same thing they did with the ATT iphone. They will string everyone along for years, making you buy a new iPhone every year just to get minimal improvements. So you might get LTE on the 4th installment of Verizon's iPhone. Apple is pathetic, the iPhone is ONLY for fanboys and retards too stupid to realize they have better options nowadays....So honestly who cares. The iPhone has TERRIBLE reception and sound quality issues which make ATT look worse than they are so when Verizon gets the iPhone the complaints abotu their service will most likely sky rocket just like what happened with ATT. Next, the customer service complaints will come rolling into Verizon because they wont be allowed to insure or offer customer support to the iPhone and they will be sending the issues to Apple stores so that Apple can Activate new replacement iPhones then report them to the stock market as :NEW iOS Activations" while making the customer have to call ahead for an appointment thus making Verizons ratings drop. I hope EVERY carrier gets the iPhone so people can find out how BAD the iPhone really is.

56. spinelessrabbit

Posts: 35; Member since: Dec 28, 2010

and att network has always been good it the crappy software thats developed by those overpaid idiodical apple It guys the os has never be efficient enough with att's network its the phone people for the real smartless ones

70. networkdood

Posts: 6330; Member since: Mar 31, 2010

My cappy gets 4MPBS download and 1.6 upload....I am happy...with 3G

54. spinelessrabbit

Posts: 35; Member since: Dec 28, 2010

if verizon get the iphone good i cant wait to see all those people experience dropped calls when thier network gets slammed with all that traiifc verizon sucks

62. therygy

Posts: 94; Member since: May 24, 2010

yea, that is a good point. i bet Verizon will get over powered and just have to completely shut down, then AT&T will take over all their bands and become one huge carrier, then they willl suck up T-Mobile and Sprint (which will be easy because sprint SUCKSSS) AT&T will then conquor the world.

51. TheEclectic

Posts: 77; Member since: Sep 23, 2009

If I were to even consider switching from my Moto Droid it would only be to a phone with 4G, dual-core processor, and a resolution to match - if not exceed - the retina display.

49. Rawrzellers

Posts: 224; Member since: Aug 22, 2010

AT&T still won't take the hint that their network sucks ass.

47. Esteban McReina unregistered

Iusacell Mexico is already selling de iPhone CDMA version, why Verizon no.

45. InspectorGadget80 unregistered

The only bad thing bout CDMA phones you can't used it world wide. GSM have a popular phone band withs. But to me as a AT&T Subscriber I could care less cause I really really need a good ANDROID DEVICE RIGHT NOW. cause I'm sick and tired of AT&T not getting all the good phones so I'm happy it's leaving AT&T now and plus my contract isn't even over. If it moves to Verizon it will still have more problems with their calls thanks to APPLE.

44. theBankRobber unregistered

I can't believe people think Sprint will lose customers like that, Iphone didn't move people from Sprint this year, the Evo moved at&t customers to Sprint from the iPhone 4. If Verizon gets it then good for them, people will leave at&t for the Verizon iphone, if sprint customers wanted the iPhone they would have left, also on a note that they both still have higher plans then Sprint and offer less so why would they leave unless they are in a area where Verizon has the best coverage.

33. Jojofromdabay

Posts: 39; Member since: Apr 06, 2010

well for the record if apple launches a verizon iphone in january feb march april may june and so on it's not going to make a difference to me because my up grade is in september at verizon an yes im going to get the 1st iphone on verizon whether i spend 199 or 499 + an yes other people feel the same so yes it's going to make a huge impact in either month because we are tired of the bs and untrue reports.

32. schafga unregistered

I think it will be great if VZ gets the iPhone. In fact, I wish all carriers had it as you know who would benefit the consumers. More competition = lower prices!!!!

30. XxxCalebxxX

Posts: 14; Member since: Jun 30, 2010

they cried wolf too much

29. misteranderson unregistered

All the people that say it's not coming know just as much as the people that say it is coming, which is nothing really. You're all arguing for no reason. I'll sit back happily, use my BB, and just see what happens. Chill out folks.

25. beillax unregistered

I heard that the verizon iPhone will come out in Feburary and a world iPhone will come out in the Summer. That's just what I have heard so far and I hope it happens.I'm with t-mobile now using a jailbroken iPhone and I could wait 5 months until the world one comes out. I's supposed to use a qualcomm band or something like that.

23. afune1 unregistered

Who cares if Verizon gets the Iphone. It will be only the 4th or 5th best device they carry.My Droid X blows it away in every measurable way. The Sheep that follow madison ave to decide what to buy can have the thing

26. hawk62

Posts: 320; Member since: Nov 21, 2009

no it doesn't. i know i have an x sitting in box and listed on craigslist

50. Whateverman

Posts: 3295; Member since: May 17, 2009

Oh yeah it does! That display is beautiful, but that ain't enough to stop me from getting the Droid X. This is the best phone on the market right now IMO. The iP4 is bland at best, even after you jailbreak it. Good games though.

20. overratediphone

Posts: 26; Member since: Sep 09, 2009

my friends cousins boyfriend used to housesit for someone that lived next door to someone who worked as a janitor in a building down the street from apple headquarters and he said that Verizon is getting the iphone 2 days and 3 hours after Columbus day sometime possibly within the next few years ... maybe

18. jaabubby

Posts: 38; Member since: Jan 16, 2010

I have the DX and see no reason to switch to the iPhone. It works very well for me. Looking forward to the Droid Thunderbolt!! More and more rumors will come out since CES is right around the corner. Competition is good. The consumer will win in the longrun.

41. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

I'm with you there...I've been waiting on a 4.3" full touch HTC device. Love the Sense IU and HTC in general. I'm Thunderboltin it, iPhone who?

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