Verizon expected to cannibalize AT&T's share of iPhone sales

Verizon expected to cannibalize AT&T's share of iPhone sales
With Verizon's iPhone on the horizon, there has been a lot of talk about what that could do to AT&T's iPhone sales. Beyond that, many surveys have shown AT&T iPhone users ready to jump ship over to Verizon. Analysts are expecting the iPhone with Verizon to cannibalize up to 37% of AT&T's iPhone sales, and boost iPhone sales overall by 14%.

Gene Munster of Piper Jaffray expects the majority of new Verizon iPhone customers to be former AT&T customers. By his estimates, AT&T would sell 17.5 million iPhones in 2011, if they were the only carrier. With Verizon releasing an iPhone some time around the end of the first quarter, he expects that number to slip to 11 million. Verizon will sell 9 million in the last three quarters of the year, adding 14% to Apple's overall U.S. iPhone sales.

Verizon won't be too disappointed by coming up 2 million short of AT&T. Their estimated 9 million units sold in 2011 will only represent 36% of their smartphone sales. On the other hand, the iPhone makes up 80% of AT&T's smartphone sales. But analysts expect the iPhone to continue to grow for both carriers, with both AT&T and Verizon selling 14 million in 2012.

This is all obviously speculation for now, but AT&T is surely starting to get nervous. Then again, many expect the Verizon iPhone to doom Big Red to a similar reputation for slow service. Only time will tell. But how about you? Are you an AT&T customer planning on jumping ship? Or are you an existing Verizon customer intent on getting an iPhone?

source: AppleInsider



31. Lorranna

Posts: 1; Member since: Jan 08, 2011

I was not able to view the entire forum yet, but I was laughing at the people talking about the Verizon I-Phone, umm Verizon is not getting the I-Phone Verizon customer's will be able to get the IPhone once the entire Merger is complete there will not be any more Verizon eventually, AT&T has bought them out with Alltel and Unicel and eventually T-Mobile thought that I would let you all know. Lorranna

26. Norcalgal unregistered

I have just returned from a road trip from Northern California to San Diego and back. I have a 5 year old Blackberry with Verizon and my daughter has a 3 year old iPhone with A&TT. I could not believe how much better the coverage and speed were with my old phone! I was able to make calls and surf the net where the iPhone could not... in numerous places up and down the entire state! I will be staying with Verizon and I'm anxious to see the iPhone with them. I hope that there will be plenty of apps to chose from, which was the only drawback when I switched to the Blackberry Storm.

23. Jay Chavez unregistered

1st cell phone I ever owned was with Cingular (2002), the coverage was a disaster (I live in Chicago). During that time, the popularity of Nextel's walkie-talkie was booming, so I switched over just for the convenience of having the ability to connect with Nextel users (about 80+ friends) in 2 seconds. I loved it. However, the dropped/missed calls and late/missed texts infuriated me that I eventually left Sprint (after the Nextel/Sprint merger). I went to Verizon @ North Riverside Mall outside of Chicago in early '08, connected w/ them and I'm proud to say I LOVE VERIZON since. I now own the BB Tour and the coverage is great. If VZW does get the iPhone, I'm almost positive I'll be buying it just beacause of Verizon's reliable network.

21. dp unregistered

lol PBC i obviously work for vzw too. i get the same thing every single day. me: hi what can i help you with today well id like to upgrade my phone and i dont need anything with the data plan me: ok well let me show you some of our feature phones.... i heard you were getting the iphone, i was thinking about waiting for that to come me: well thats just speculation at this time so i couldnt tell you if it was or was not coming to vzw. i thought you said you didnt want a data plan. you do realize that is a smart phone and requires a data plan right? yes i do realize that is has a data plan and would be willing to pay for that on the iphone me: let me show you or android products, they are around 3-4 times faster online, have more free apps, faster processing speeds, better camera, they are customizable, the lens wont shatter every day, it doesnt require you to spend extra on an apple care plan etc well i dont want a droid i want the iphone... me: can you explain why that phone would be a better fit than a droid? it doesnt do anything better than the droid.. its an iphone me:you realize thats just a brand and you are paying more for less correct? yes but its an iphone lol

22. DroidMclovin unregistered

OMFrigginGah.... I know right. Drives me insane. I was in a store waiting on my gf to come out of the dressing room, the guy next to me was playing angry birds on his iphone, so i started talking to him and asked him if he liked his phone, "oh i love this phone," he said. I asked what he loved about it. "It's an iphone!" I said, I understand that, what are 3 things you love about your phone.. "Uh, my email, i can download apps, facebook." FML I was like ok, we have all that covered, check this out.... So i showed him several things on my Droid X, he was like, "man, that's awesome, my phone can't do that. Aren't you guys getting the iphone in Jan?" Holy Moly

20. PBC unregistered

HAHAHA.. I couldnt agree with you more (dp). Half these people have no idea how to use a damn smartphone and don't even want to pay the data rates (I'll never use it) and then thats followed by... Are you getting the iPhone!? (yes I work for VZW). Who cares!!! You just want it bc it's called an iPhone. And VZW never once said they were getting it, RUMORS started that. There is way more ability with the android OS then apple. But hey what do I know... it doesn't have an apple on it!

19. dp unregistered

WOW! so many unedjucated statments in this discussin i could puke... heres the breakdown people; FACT- alltel used vzw towers in the past (same technology) FACT- vzw ownes alltel so when you say alltel had better service you dont make sense at all FACT- iphone is so far behind the curve that experts suggest it will take them 15 years to catch android OS FACT-yes att's statment about 95% coverage is including landline TV and internet FACT- Fascinate is not the nicest phone at vzw unless you are only considering apperance. (it runs bing which is crap and has much less processing speed) FACT-Apple has had more than a handfull of successful court cases against att for their false claims that the iphone itself is the problem (it is mostly network problems) FACT-apple could put out a brick and people would still buy it and say its the best phone (even though it doesnt make calls) just because its made by apple well i think that sums it up for the most part lol all that said... it doesnt matter what phone is better than another because most people buy a phone because of the look of the phone or what is advertised more. few people actually do the research anyway.

18. Sele unregistered

To CRICKETownz I've had a droid 2 and currently have a samsung fascinate and I'm not loyal or too impressed by either one. Sure the fascinate is nice, nicest phone on vzw right now, but it has too many glitches and definitely not as simple as the iPhone. The thing that sells me on the iPhone is the practicality of the phone! I'm not an apple fanatic and I don't bow down to apple, I don't own any other apple products except an iPod touch, but no one can say the iPhone sucks because it doesn't.

24. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

the iPhone is "practical" b/c most ppl have used the iPhone in a iPod touch so its more familiar than it is practical. if you think the UI on the iPhone is any easier than Android you are bein ridiculous. i've used both and neither is easier than the other to grasp. someone can say the iPhone sucks b/c not everyone likes the device. i won't go as far as to say it sucks but its not for me. i've been spoiled by my 4" screen. these glitches you speak of don't exist in mine and iPhone is not exempt from glitches and from what i hear from those who have experienced the iP4 its not that great. its just a brand name for the trendy people to gloat about. this is not '07 anymore, iPhone is just another option nowdays like blackberry or webOs.

17. DroidhavinCellPhoneGuy unregistered

I think you all are wrong.... Kdotcom, you should really do some research on phones and you would find that the Fascinate is not the 3rd best phone on our network. You would find the Incredible in that mix. The fascinate runs bing that should be enough said, but remove the google nav, google maps, and google search and you have the fascinate a nice screen and thats it..kinda Iphone esque if you ask me. My droid X does everything that yours does but one thing and thats suck. Att likes to throw gimmicks at you and say they cover 95% of the people. Yeah if you include home TV and Internet. Which will take care of next year. I aint worried one way or another about a Iphone. Droid sales and doesn't usually have a problem we cant fix. Keep yah head up ATT, VZW we rule the AIR

25. mmgbmt

Posts: 18; Member since: Nov 23, 2010

in addition to the 95% coverage that you were explaining, that also includes there 2g and 3g network. verizons LTE 4G network already covers 1/3 of the poplulation almost 100,000,000 people and expanding once phones launch on the network verizon WILL BE THE FASTEST 4G ANYWHERE IN THE WORLD. and as for the i phone, i could care less if it comes to verizon, it would help to balence out the market and not create a verizon monopoly so they can boost sevice prices through the roof. they already have driod on a lock, keep it that way

16. kdotcom unregistered

The iPhone in general is old news. Everything that once made the iPhone great has become a hassle. iTunes sucks. 3.5in screen sucks (though retina is nice). Call quality sucks on the iPhone. I hate Verizon with a passion. If hell froze over and I were to switch to Verizon I would get a Droid X, Droid 2 or Fascinate. Those are the three best phone on Verizon, even if they had the iPhone. Sure the phone would sell a TON if/when Verizon gets it. But I don't think it's going to be as much as people think. At&t with most likely get the latest version first. So die hard iPhone fans will stick with them. Also Verizon has spent so much time advertising for Android I think that people are starting to care less and less about the iPhone. If people really wanted it, I think they already have it. I don't see people paying 300 some dollar fees to leave At&t. Either way people need to stop caring about a Verizon iPhone. Verizon has great phones using a more rapidly growing OS.

15. CRICKETownz

Posts: 980; Member since: Oct 24, 2009, i could take it or leave it. would be nice to have a smooth sync with iTunes, but that's not a necessity. recently hit a Apple Store since it was new to our area mall. touched the iP4 and didn't see what the hype was about. it was unexciting, cute & little, & the Retina display was not very enticing. I was more enticed by the iMac with the 27" widescreen display starin me in the face. Once you've held a droid x or a samsung fascinate with the large display it's almost like trying to go from a 55" LED back down to a 19" plasma tv. hopefully Verizon's version has a 4"+ screen, if not...i'm not interested. I'd be more interested in seein the HD7 hit Verizon than a petite iPhone.

13. anonymous67 unregistered

I have had the droid x and the iphone 4.....hands down IPHONE4!!!!! Android sucks ass compared to the iphone. As far as the reception goes I never experienced a dropped call yet with at&t, maybe its because I live in Chicago not really sure but I definitely have no complaints. But honestly I dont think Verizon is ever coming out with the iphone, they have been saying it for like 6 years now and it still hasnt happened. I used to work for VZW and they claim that they do not need the Iphone, in some ways they are right, they rank no.1 as far as reception and reliability. But hey who wouldnt want the iphone on a verizon network?? I

14. doubleD

Posts: 78; Member since: Dec 13, 2010

"who wouldnt want the iphone on a verizon network??" >>> ME

12. NightFox50

Posts: 18; Member since: Jul 18, 2008

To ledzepmsu, I completely respect your comment, but i have to disagree with you on a few things. 1st of all when Alltell came around, if i'm not mistaken, it was running on a very similar network as Sprint and Verizon. On top of that i know for a fact that Alltell borrowed Verizon and Sprint towers to allow its customers to roam around the 50 states when they were outside Alltells coverage, before the Verizon merger. 2nd Number one reason VZW waited for Iphone this long is so they can upgrade their network to be ahead of all the other carriers. YES PEOPLE this multi million dollar company did infact have plans to start rolling LTE (4G) before news of any Iphone came out. So kudos to Verizon for sticking to upgrading their network. 3rd of all what you say is very true about certain towers being closer or farther from people making or breaking their contentment with the provider, but if you dos ome reasearch you can see that across the US Verizon actually has more towers up and running. Not only that their towers are so good that other cell phone providers run through their towers as well. So to sum my essay comment lol , crAp TnT will be falling behind all of the other carriers. Oh yea and just n fyi, i've had t-mobile, cingular, at&t and verizon. (in that order) Take a wild guess as to who i gladly hand over my money every month. hahaha and to beillax how could you like an iphone and not a droid, i'm guessing ur still running an Iphone 3g on ur tmobile, as might as well save some money and get the ipod touch cause u dnt even need the 3g.

11. beillax unregistered

I have owned a t-mobile unlocked iphone for about 5 months and the only complaint I have is it does not have 3G. I will never go back to android and always have an iphone. I wish t-mobile would support the iphone fully like they do in europe but I will just have to hope. Either way, I will never go back to Android. Anyway, if your an android user on Verizon and you are having mixed feelings about switching to an iphone, do it!

10. spagrant85 unregistered

I am a Verizon customer that is nearly fanatical about getting an iPhone in the upcoming year. Plus, Verizon's 4G LTE looks to kick all other carrier's butts once it is completely rolled out. Can you imagine an iPhone that is 4G compatible?!

8. ledzepmsu unregistered

I also have worked for both companies and have used both carriers. Everyone is wrong, the best coverage ever was Alltel and I remember 3 years ago when Verizon was getting the Iphone. How were sales on that, oh wait, it never happened. As for the coverage argument, it is all releative. Not all carriers have towers in all areas so what may work fantastic for one person may not work for the otehr. Liike MarcMaiden said before. The main issue that people have with AT&T is due to the I-phone. It actually is one of the worst "Phones" out there. The data and apps are agreat, but as a "phone" it sucks.

33. Rob unregistered

No, AT&T as a phone company sucks, no matter what phone you have.

7. rd311

Posts: 10; Member since: May 08, 2010

What a joke. Boost Mobile. Come on REALLY!! GET REAL.

5. RoflMAO unregistered


4. JeffdaBeat unregistered

The Verizon iPhone is old news...What about that Boost Mobile iPhone...

9. Gcombs unregistered

Joke of the day... lol

29. corey unregistered

Probably around the time that walmart starts selling coach.... get real

3. bloodpanther

Posts: 32; Member since: Jul 15, 2010

Instead of bitching about the rumors of the iPhone coming to VZW I am going to now start taking lithium to put myself into an alternate mind set so I am forget all of this. Or maybe I need to take what Miley Cyrus is taking.

2. MarcMaiden

Posts: 25; Member since: Nov 24, 2009

Working for AT&T i honestly couldn't be happier. 90% of problems that come to the store are Iphone related. Ive noticed that most people who complain that AT&T has bad service have the Iphone. I owned an Iphone for a week before returning it for other devices and I have never had problems with reception

6. rd311

Posts: 10; Member since: May 08, 2010

MarcMaiden- Very sorry but I disagree with you one hundred percent. I have been with both carriers and I can say as far as coverage and reliability across the board, Verizon is number 1. AT&T's coverage sucks, you ask if I am just saying that because I am on Verizon? Nope, I have used AT&T through my employer and I along with every other employee have changed to verizon because AT&T's coverage is no where near as good as Verizon's.

30. rd211 unregistered

RD311...well I am a att customer and i disagree with you...verizon does well because it has cdma,, cant do anything at the sametime with cdma, Plus your acclaim that businesses have went over to verizon,,that is not so,,for the reason is businesses stick with gsm technology. LOL..and please verizon has its drop calls also and bad coverage...Ok thank you..nice try

32. Rob unregistered

No, really, AT&T's coverage sucks. Look at it's phone coverage map and compare it to Verizon's. I can't get a phone signal at the grocery store and I'm in a city. I can finally get coverage in my basement but barely. Several friends have Verizon and have no problem with getting a phone signal. I don't care if the 3G is slow, I just want to use my phone as a phone when I need to. Can't wait to go to Verizon solely for this reason.

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