Is the iPhone stealing Verizon’s thunder?

Verizon is rumored to be getting the iPhone some time next month, though many are still skeptical and a formal announcement has yet to be made by Apple. In the meantime, it looks like Verizon might need the iPhone more than ever according to a recent study.

According to Asymco:

ITG Investment Research analyst Matthew Goodman is forecasting monthly sales record for all of Verizon’s devices “based largely on our proprietary daily point-of-sale data from thousands of independent wireless retailers across the US.”

With the data, Asymco was careful to note that the findings may not be entirely accurate, but if it is, here is what is gathered:

  1. The iPhone has stolen their growth
  2. They are facing the prospect of a single OS platform supplier
  3. Android is not competitive vs. iOS

It’s hard to determine the first point because Android devices for Verizon have been relatively strong, but AT&T has been posting record sales quarter after quarter for the iPhone. The second point is easier to argue because Verizon really does just provide a single OS — Android. Sure, it sells BlackBerry devices, but how do those compare with the army of Android handsets it has? Also, Windows Mobile shows some promise and Verizon isn’t carrying any of the Microsoft devices just yet.

Lastly, to say that Android is not competitive against iOS is such a lousy blanket statement. Of course, the author is only making the assertion based on information which he says may not be entirely accurate, but a quick look at the market share numbers would say otherwise.

Here are some additional points gathered from the study:

  • Verizon smartphone volume grew from 2.7 million to 3.3 million from Q1 to Q3, the iPhone for AT&T grew from 2.7 to 5.7 million in the same time frame
  • Verizon and AT&T took in 75% of all data revenue in the U.S. during Q2 and comprise 62% of all U.S. mobile subscribers
  • Verizon has 92.1 million subscribers versus AT&T’s 90.1 million
  • “In an apples-to-apples comparison, in Q3 the iPhone at AT&T outsold Android at Verizon (remember, same addressable market) by a factor of 2.5”

It’s pretty clear from the study that Verizon is having some trouble fending off AT&T and the iPhone. If the carrier were to start selling the iPhone next year, it could be a huge blow to AT&T who is constantly asserting its investors that losing iPhone exclusivity is not a concern. However, these numbers show otherwise–the only thing keeping the carrier competitive against Verizon is the Apple smartphone.

For more information on the study and to see additional numbers and comparisons between the two carriers, see the link below.

[Via: Asymco]

  • Fuzzy math. I’ll take quality service to anything AT&T would promote in a NY minute. Beyond that, I personally don’t believe any numbers with AT&T’s name associated with it.

  • Lol69

    its not always about sales… its dollar per sale figures. apple takes most of profit off their devices sales.

  • Android not competitive with iOS…has this guy been following the sales figures at all? Android has been passing up iOS left and right with staggering sales figures.

    Not to mention almost all the Android figures are actual smartphone sales, whereas much of the iOS numbers are non-phone products like the iTouch. Anyone with half a brain can see the writing on the wall. iOS is not going anywhere pof course, but its days of being the premier smartphone platform are about to vanish in a small puff of smoke.

    As for Windows…”promising”? Are you kidding me? WP7 is a mess…all the restrictions of iOS with none of the apps or the slick interface. No multi-tasking with 3rd party apps? No USB? No copy/paste? No Flash or HTML 5 (still)?

    Sorry, that doesnt sound terribly promising to me. Microsoft managed to impose even MORE restrictions on their platform than Supernanny Steve Jobs did…great work! Thats an impressive feat. At least in Apple’s gilded cage I would have a massive app store and a very polished interface.

  • A Verizon iPhone would not take away from Android sales…it would just transfer AT&T iPhone sales to Verizon.

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