Analysts say Verizon’s iPhone likely to hurt sales of Android phones

“Verizon’s iPhone 4 will be available for pre-order Feb. 3 for existing Verizon customers, and will be generally available for pre-order beginning Feb. 10. Verizon executives said the 16-gigabyte version of the phone would cost $199 with a 2-year contract, while the 32-gigabyte version will cost $299 — the same as AT&T’s pricing. It said pricing for data plans had not yet been determined,” Jenna Wortham reports for The New York Times.

“The highly anticipated arrival of the iPhone on Verizon ends a five-year agreement of exclusivity between Apple and AT&T,” Wortham reports. “The partnership between Apple and Verizon is multiyear and non-exclusive, executives at both companies said. And it is likely to throw the smartphone market in the United States into something of a tizzy.”

Wortham reports, “Analysts say that the move could both double Apple’s smartphone market share and seriously hinder the rise of phones running Google’s Android software in the United States… In countries where the iPhone has been available on multiple networks, it tends to take over the bulk of the smartphone market share.”

Verizon “iPhone users would be able to tether up to 5 Wi-Fi devices to the phone so they can piggyback on its cellular data connection, although it declined to provide specifics on pricing for that feature,” Wortham reports. “The company did not say whether it would modify the pricing structure for its data plans, which currently allow customers to buy unlimited data. AT&T, by comparison, requires that its users pay for metered data plans.”

MacDailyNews Take: Pricing plans will follow, as usual, in order to generate a double dose of free publicity.

Full article here.

MacDailyNews Take: What we wrote two months ago works well enough today: “We’ll watch these numbers with interest as the current (calendar fourth quarter 2010) quarter will have strong U.S. multi-carrier iPhone rumors and subsequent quarters may have actual U.S. multi-carrier iPhones. You may be seeing the Android’s high water mark for OS market share in these numbers as market realities, not to mention court cases, change to work in favor of Apple iOS. After all, why settle for a fake iPhone when you can get the real thing?”

77 Comments

  1. @ Cowboy

    The pricing plans are the exact same for all of Verizon’s smart phones. There is no reason to announce pricing plans, since there is no change. It’s just a new phone model available to their customers.

    Except it’s not “just another phone model”. It’s the iPhone 4!

    I don’t really care about Verizon. I have great AT&T coverage where I work/live.
    But, as an AAPL investor, it’s great news! 😀

  2. After the hype fades away Android will continue to gain Market share look at the rest of the world and what Android is doing in India and in China. How is Apple going to compete with $100 dollar androids without a contract? Android will destroy Apple in market share, availability, pricing, and production are all behind Android. Apple won’t care it shouldn’t care because it will make the most profit.

  3. Perhaps their pricing plans won’t be too popular with all of us who want to switch. So they will have positive worldwide press coverage today and several weeks in the future. Once things settle down they will hit us with the pricing. But today is all good news for Verizon. Nothing negative. I just watched their president and he sidestepped pricing,LTE and the inability to multitask while you are connected with a call.

  4. I for one predict that after the first year AT&T will see a rise in the number of VZ costumers switching to their network for iPhones, due to VZ’s CDMA network and the inability to use voice and data simultaneously.
    Sure, you’ll be able to tether up to 5 wifi devices to share the phone’s internet, until the phone rings, then it’s “everyone out of the pool”.

  5. Android is the only option available to companies like HTC, Motorola, etc. which make handsets but have nothing to do with OS development. Windows charges too much and is too demanding on hardware to compete with the iPhone, and there are no other real options.

    That’s why Android is being pushed so hard – it’s the only real hope for these companies to compete in the smartphone market. If Android distribution was shut down tomorrow (say, by a patent infringement lawsuit or Google just stopped it), several companies would die shortly thereafter. Why do you think Motorola split itself into a phone handset company and everything else company?

  6. @peter

    I think Apple favors profit over market share as any good publicly traded company should. Even if Android gets all of the “market” not owned by the iPhone, they still lose because its not a sustainable model.

    “We lose money on every phone sale but we make up for it in volume.” — Android phone makers motto.

  7. I prefer android operating system, I enjoy widgets, how I can change it anyway I want, and the choices I have. I understand some like the simplicity of an Iphone and the ecosystem that Apple brings, to each his/her own. I own Apple Stock and a few Macs so im all for making money.

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