“Out of a total of 22 million iPhones to be activated on a post-paid basis in 2011, AT&T will sell just 9 million, or 40% of the gross ads, writes Hodulik, while Verizon will garner 60%, starting in Q1, for a total of 13 million post-paid additions,” Ray reports. “The result, Hodulik believes, is that AT&T’s spending on subscriber additions can go down, assuming it still spends $400 per iPhone to subsidize the device, leading to $2.8 billion less that the company needs to spend. That means slower growth for AT&T… But the net result is EPS of $2.55, ten cents higher than Hodulik was previously modeling.”
Ray reports, “Hodulik writes that Verizon has already been cutting costs in its wireless division, trying to prepare to absorb the added expense of the iPhone subsidy.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
So the big V has been sacking it’s own people and hiring outside company’s to help with iPhone stuff. Interesting
Since CDMA won’t let you talk and surf the web simultaneously, I don’t see what the big draw to Verizon is in the first place.
Who cares about AT&T, they are their own worst enemy. I just hope AAPL climbs much higher by opening up to the other carriers.
I bought the first iPhone the day it came out and have upgraded the first day each new one has come out. I now have an iPhone 4 and so does my wife. Neither of us has ever surfed the web and talked on the phone at the same time. I bet we are more like most users than you are. It ain’t no big deal for most, I bet.
Verizon’s network can’t handle it – wait for all the network slowdowns…
It will be great to watch..
The bigger disaster will be for Android.
@FutureMedia,
It was reported a few months ago that Apple was working on a CDMA variant that will allow just that. You can guarantee that they won’t release a phone that doesn’t allow you to talk and surf at the same time.
With all this speculation, you gotta wonder if any heads will roll if verizon doesn’t get the iPhone next year. They’ve been trying to figure apple out for quite sometime now and have not even gotten close. I guess if you write about long enough(what 4 years now and counting) it will eventually come true.
That technology is no good. They’ve been trying that for years now and have been very unsuccessful.
Verizon.
Getting the iPhone any day now since 2006.
Who cares. I’m awaiting the day when I can use a “pay as you go” sim card for my (very) limited 3G needs. 99.99999% of the stuff i do on my iPhone is within wi-fi, and I’d never sign another contract again if I could help it.
@HughB
It’s not just surfing the web, it’s any kind of data. I frequently have a conversation going while using Maps, which would not work on Verizon because I couldn’t search for a location while on a phone call, or pull up an email, etc. It is an important issue, especially for those of us who use our iPhones for our business.
@HughB
Just because you don’t see the use for a feature doesn’t mean that you have your finger on the pulse of users in general. I use data & talk simultaneously all the time as do the vast majority of iPhone owners that I know. Now, my friends and I may have a higher level of technical aptitude than you, or we may just be better multi-taskers. Either way, if Verizon can’t bring simultaneous talk & data to the iPhone, I’m inclined to believe it will have some impact on the potential for conversions from ATT – Except maybe for the people like you, who have the iPhone mostly because it’s a shiny bauble to improve self-esteem and perceived status in an otherwise pedestrian life – not because they know how to make the most of it’s features.
@your average idiot
I’m in the UK and have same usage patterns as you. Thankfully we can get a Pay-As-You-Go SIM card from O2 for £10/month ($15.60). Includes 300 texts, 500MB data and you use the full amount for calls. They also throw in around 20% extra call time for free. I can’t use the call time but the phone is essential.
@John Smith
Gosh I have never said anything bad about you. You make me feel bad. How did you know I am so shallow that I only want a shiny bauble and have a pedestrian life? I am afraid I am unable to know what kind of wonderful life you have, but I do know you are some kind of asshole. That I can recognize, even with my limited technical aptitude.
Anyone who believes that Verizon is in any way better than AT&T is kidding themselves. The iPhone won’t overwhelm Verizon’s network the way it did AT&T’s because there will be two carriers handling the iPhone load instead of one. And AT&T’s network load will be reduced because of defections to Verizon. The net result is that iPhone users will benefit from the addition of a second iPhone carrier. But then, we all knew that the day that Apple announced their exclusive deal with AT&T.
Well duh, Verizon has user hostile pricing and contracts.
I would have never thought I’d say this over a year ago when I ditched AT&T, but I’d rather have AT&T on my iPhone than Verizon.
If Verizon launches LTE, won’t a Verizon iPhone have both LTE and CDMA radios, and thus be able to handle calls and data simultaneously?
use data while on a call is very useful. if you’re talking to someone and asks you information you do not know just put the call on speaker and open safari.
Dumbasses.
ATandT does not subsidize anything. They charge a downpayment for the phone and then ‘loan’ the consumer the money to buy the iPhone which is paid back in installments, plus a data service fee.
If you call that a ‘subsidy’, a giveaway, you’re a total dumbass.
When Verizon sells iPhones the Android and RIMM Blackberry (almost) smart phones will be crushed. If 1/2 the iPhones are on Verizon, that will lighten up on AT&T’s network. As both fight for iPhone customers, the cost will drop for the users. And, EVERYONE WILL HAVE TETHERING AND FACETIME AT ALL TIMES!
I see good times coming for us and RIMM will be doing a “Buy 1 take as many as you want” sales pitch!
@Jersey
You are smoking something if you really expect half the phones Verizon will sell will be iPhones. Lets face it, Android is here to stay and will remain the biggest seller at Verizon and possibly even at AT&T. iPhone will do very well, but I would be shocked to see it anywhere near 50%. How many iPads has Verizon sold so far? Not many I have heard. No lines there for iPads in my neighborhood.
I’ve been a Verizon customer since Mama Bell (lineage.) I have had good land-line service, until they decided they didn’t want to support land-lines anymore. I have had good mobile service with a minimal contract (the cheapest they’ve had for extremely low use), and still have to pay exorbitant fees.
I was born in the first half of last century, and my cell-phone use has been for travel, emergencies, and for trying to synchronize meetings. I have had the same phone for more than twelve years (Motorola, original battery) and have probably used the phone about 500 minutes since purchase. My fees have been about $3500 for this service.
I’ve had my 3G iPad since May. There was online hookup, no hookup charge, no contract, online billing, free online account checks, and nearly perfect service. I’m looking forward to a modest upgrade in monthly mobile phone fees by purchasing a new iPhone. This phone is small enough for me to carry it all the time. . . . And I think I’ll move over to AT&T.
@X – Since the price for service from AT&&T is the same after the contract expires, when was my repayment of the loan received by the carrier? Answer – Never, because the iPhone was subsidized.
@hughb
You may not use it, I do alot.
Not surf web while on a call, but finding some info on my iPhone.
Getting a phone number/email for someone, or something similar.
A guy at work, ended a call with his wife, opened up his contacts, wrote an address down, called his wife back and gave her the address. I laughed.
Also cause his wife didn’t answer right away either.
Bieng able to multitask on my iPhone is another reason I wouldn’t go to verizon.
When I do the multitask in front of others, I always get dirty looks. They know they can’t do it.