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US iPhone sales up 155%, suggesting sales of roughly 3 million Verizon iPhones

post #1 of 30
Thread Starter 
While Apple executives seemed careful to reveal very little during the company's fiscal Q2 earnings conference call, a new hint at Verizon iPhone sales slipped in the revelation of 150 percent quarterly growth in US iPhone sales over last year.

AT&T just revealed that its iPhone activations were up 33% in the first calendar quarter of 2011, amounting to 3.6 million new iPhones on its network compared to 2.7 million in sales for the same quarter in 2010.

During Apple's own conference call however, chief operations officer Tim Cook noted that iPhone sales "did well everywhere," but drew special attention to dramatic growth in China (where he said iPhone sales were up 250 percent) and in the US (where he noted iPhone sales grew by 150 percent).

Cook said that adding Verizon as a new carrier during the quarter was "key" in that strong US iPhone growth, while also noting that AT&T also "did extremely well."

Using AT&T's activation numbers from the year ago quarter, growth of 150 percent would indicate that American sales reached 6.75 million iPhones. Subtracting the 3.6 million units AT&T activated this quarter indicates that an additional 3.45 million iPhones are either in US inventory awaiting activation, or were sold by Verizon.

Apple indicated that its global channel grew by 1.7 million iPhones to support support new carriers, including Verizon and other major carriers internationally such as SK Telecom in South Korea and Saudi Telecom in Saudi Arabia. Verizon hasn't yet reported how many iPhones it sold in the last quarter (it is expected to do so tomorrow), but based on AT&T's activation numbers and growth figures, it appears Verizon sold in the ballpark of 3 million units since it began offering the iPhone to its own subscribers on February 3, and to the general public a week later.

Sales of about 3 million Verizon iPhones would be inline with analysts' expectations from January that predicted the new carrier would help Apple sell the iPhone to between 9 and 12 million new users.

Growth in iPhone sales through Verizon was also credited for enabling Apple to outpace Android in ad impressions observed by Millennial Media in March. The firm said Verizon iPhones accounted for 8.2 percent of iPhone ad impressions last month. Chitika's mobile ad network reports a 13.6 percent share of iPhone impressions from Verizon's network.

Analyst Ming-Chi Kuo of Concord Securities told AppleInsider in February that discussions with component makers in Apple's supply chain indicated that Apple had prepared 2 million CDMA iPhones in advance to meet demand.

The day Verizon began offering iPhone 4 to its existing customers, company president and chief executive Dan Mead announced, "this was an exciting day. In just our first two hours, we had already sold more phones than any first day launch in our history." The company didn't begin selling the iPhone to the general public until a week later, and online sales through Apple were delayed even further.

A line of about 20 customers stands outsize Louisville, Ken., Verizon store Thursday morning. Photo via Flickr user jasonhiner.

Despite record sales, the staggered launch of iPhone 4 on Verizon's network failed to generate long lines of buyers, resulting in reports that the launch was "not blowout" and leaving some bloggers, such as Dan Frommer of Silicon Alley Insider to coyly remark that lines were "laughably short."
post #2 of 30
Quote:
Originally Posted by Parttimer View Post

Check here to see how your devices are being tracked and logged.

Tracked and logged, yes. But not shared with Apple.

And if you're worried about that, you should see what information your credit card company knows about you! They keep a record of every purchase you make.

And you phone company logs every phone call!

And your bank knows how much money you have!

And your grocery store knows what kind of food you buy, and your HOA probably knows when you enter and exit the gate, and your postman knows who sends you mail, and so on...

So your phone logs its location, but Apple doesn't know where you've been. They don't 'track' you. Google, on the other hand, is way more frightening. Their business model is built on observation of your behavior.
post #3 of 30
The first poster has to derail a thread. Teckstud, anyone? :sigh:

Moving on… It’s one thing to say that people didn’t jump to the Verizon iPhone mid-cycle, but it’s a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.
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post #4 of 30
I thought I remembered seeing that Verizon paid a pretty hefty up-front fee to Apple for the right to sell the iPhone. (anyone got the figures, if there is one?)

I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.
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post #5 of 30
Quote:
Originally Posted by Parttimer View Post

And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!

Steve IS Big Brother!

Check here to see how your devices are being tracked and logged.

"Whats grating about this reporting is, as usual, the emphasis being placed on the fact that its an Apple product. The headlines are all variants of Apple is recording your every move! In fact, theres no indication that Apple has any way to access this data at allthe only way to get it is to have access to your iPhone or to your iPhone backups, and to know whose iPhone the file belongs to."

"We introduce a new forensic technique that allows to collect users past locations on most current Android phones, within a few seconds. It becomes possible to tell where the user was at a given time, or where a phone call took place over the last few hours or days."

Whatever you say...
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post #6 of 30
Quote:
Originally Posted by solipsism View Post

The first poster has to derail a thread. Teckstud, anyone? :sigh:

Moving on Its one thing to say that people didnt jump to the Verizon iPhone mid-cycle, but its a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.

Barely, but it is surprising. I think we'll know more with the iPhone 5. And I just bought an iPhone for my son. The Verizon store we went to was stuffed with Android phones, and lots of sales people motivated to sell them.
post #7 of 30
This depends on your expectation. Which Android phone would 3 million new people purchase after its 6 months old?

No, I don't believe that Verizon is upset about having 3 million subscribers locked into a 2 year contract on a premium plan.

Quote:
Originally Posted by Gatorguy View Post

I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.
post #8 of 30
Quote:
Originally Posted by chabig View Post

Tracked and logged, yes. But not shared with Apple.

And if you're worried about that, you should see what information your credit card company knows about you! They keep a record of every purchase you make.

And you phone company logs every phone call!

And your bank knows how much money you have!

And your grocery store knows what kind of food you buy, and your HOA probably knows when you enter and exit the gate, and your postman knows who sends you mail, and so on...

So your phone logs its location, but Apple doesn't know where you've been. They don't 'track' you. Google, on the other hand, is way more frightening. Their business model is built on observation of your behavior.


He could always go to Google who gives away free software so they can have access to your information and data. All your contacts and their phone numbers and email address and locations. Theres even the free Google numbers to monitor your calls to see who you are calling and what you are talking about so they can better sell you to the advertisers who is where they get their money from. If spammer offered to pay you for the names, cell phone numbers, email addresses and emails in your phone would you do it? NO! But to get for something for nothing
Google gets to be the middleman.
post #9 of 30
Quote:
Originally Posted by Parttimer View Post

And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!

Steve IS Big Brother!

Check here to see how your devices are being tracked and logged.

Would I be right in assuming that you put your trust more with Google? Because they're "open" and open is always better?

That would be the same Google as the advertising giant that tracks every click and web page You visit and links it to your Google ID and stores it forever? The same one that gives away lots of free cool toys to lure you into their giant info gathering web and makes billions of dollars per quarter on you?

Oh
post #10 of 30
Quote:
Originally Posted by Gatorguy View Post

I thought I remembered seeing that Verizon paid a pretty hefty up-front fee to Apple for the right to sell the iPhone. (anyone got the figures, if there is one?)

I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.

That would depend on how many of the estimated 3 million Verizon iPhones are new subscribers versus already Verizon users renewing their contract. And how many already Verizon users on voice only plans upgrading to the more profitable data plans because of the iPhone. Even if only 1/3 of that number are new subscribers, that's 1 million new accounts that they didn't have before. But how many of these would have signed up with Verizon, even if they didn't have the iPhone? Maybe we can figure that out when Verizon releases their new subscribers number for the quarter and compare it to previous quarters. But any way you look at it, Verizon got 3 million users (if the estimate is correct) locked in for 2 years.
post #11 of 30
Quote:
Originally Posted by Parttimer View Post

And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!

Steve IS Big Brother!

Check here to see how your devices are being tracked and logged.

LOL - ATT/VZN/TMOB does the exact same thing with tower data.
Its such a non issue it isn't even funny.
post #12 of 30
J went back to look at the Jan. 25th Verizon Conference call. It looks like Verizon is actually on track to meet it's stated expectation of at least 11M iPhones sold in 2011. They also indicated they might do much better than that depending on supply. So while probably not doing flips, Verizon management may be comfortable with the pace of sales afterall.

I guess I spent too much time reading projections from here rather than from Verizon themselves.
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post #13 of 30
Quote:
Originally Posted by shadash View Post

Barely, but it is surprising. I think we'll know more with the iPhone 5. And I just bought an iPhone for my son. The Verizon store we went to was stuffed with Android phones, and lots of sales people motivated to sell them.

Right now and likely for most of the country through the end of 2012 Verizon will still have the much slower network with limited capability. Like it or not, people want voice/data at the same time as well as the much faster speed AT&T offers. At work they either give you a blackberry or if you opt for another smart phone it's always on the AT&T network. Once Verizon gets their network up to snuff for the whole country, not just big cities, I am sure things will be much different. Data is quickly passing voice in priority.
post #14 of 30
Quote:
Originally Posted by solipsism View Post

Its one thing to say that people didnt jump to the Verizon iPhone mid-cycle, but its a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.

Not surprising to me. Once customers began to compare prices (favor AT&T), features (again favor AT&T- international coverage, speed, multitasking), the mass exodus to Verizon never occurred.
post #15 of 30
No surprise to me either. The reality is for most people they use their iPhone as a phone for a very small percentage of the over all use. Verizon's big benefit is its voice network, but it lags far behind AT&T on data.

If you use your phone 80 percent of the time for data related functions, and 20 percent for voice, the company with the stronger data network is better. Moreover, Verizon is even more overpriced then AT&T, and it actively tries to trick money out of "customers."

Further, if you are on AT&T you are going to be disappointed with the iPhone performance in terms of not being able to use data and voice at the same time on Verizon. Moreover, some of the options aren't as easy to use on the Verizon iPhone. If you are already on Verizon, those things aren't so much of an issue.


Also, Apple released the iPhone on Verizon not to take sales from AT&T, but to gain new customers. Seems to be working. AT&T also worked hard to retain existing customers by giving free minutes and offering unlimited plans to people who threatened to switch.

Quote:
Originally Posted by noexpectations View Post

Not surprising to me. Once customers began to compare prices (favor AT&T), features (again favor AT&T- international coverage, speed, multitasking), the mass exodus to Verizon never occurred.
post #16 of 30
Quote:
Originally Posted by Parttimer View Post

Not of mine.

Not if that phone is not registered to me.

No.

No.

I guess you didn't read that piece, did you?

Same difference. And the reason why I don't use Google Search, Google Docs, or clouds when I can avoid them. And when I have to use a cloud, I encrypt before uploading.

My, my, that tin foil hat looks ever so stylish on you, Parttimer.
post #17 of 30
If indeed 3M iP4 were sold by Verizon, it means Apple is dominating the two dominant carriers in the US. If AT&T/TMobile merger is approved, that leaves Spring as the only carrier that sells Android but not iPhones. This just might be the momentum sapper for Android.
post #18 of 30
[QUOTE=Parttimer;1851561]Not of mine.

Sounds like you are seriously paranoid delusional. There are medications that can help you. Go see a doctor and soon. Oh wait, if you see a doctor he will know about your paranoia and that will only make you more paranoid. Catch 22 isn't it, as if anybody in the entire world would be interested in what you have encrypted in the cloud.

By the way did you know that that the government has installed Tesla coils at the North pole in order to achieve mind control over its citizens? It's true, but you already know that, right?
post #19 of 30
Quote:
Originally Posted by solipsism View Post

Its one thing to say that people didnt jump to the Verizon iPhone mid-cycle, but its a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.

Sure it was announced Jan 11th, but it wasn't available until Feb. Even if you theorize that every potential Verizon buyer held off and waited as soon as they heard the Jan 11th announcement, that's still 15% of the quarter that Verizon missed out on. Extrapolate that out and you get to about 3.5 million Verizon iPhones vs ATTs 3.6 million. Add in the fact that not everyone would have waited between Jan 11th and availability, folks thinking they'd just wait until June for the iPhone 5 (oops), and that any potential ATT-to-Verizon switchers are waiting for their contracts to run out, I'd call it a wash.

Sure, Verizon should have gotten a kick from pent up demand, but ATT also has multi-year head start to build up an upgrading customer base. And let's face it, most people probably couldn't care less about the whole ATT v Verizon debate.

I'd give it at least another quarter before passing any judgement.
post #20 of 30
Quote:
Originally Posted by solipsism View Post

The first poster has to derail a thread. Teckstud, anyone? :sigh:

Moving on Its one thing to say that people didnt jump to the Verizon iPhone mid-cycle, but its a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.

Haha, the reincarnation of Teckstud.

3 Million iPhones on Verizon, when ATT activated 3.6 is huge! Forget how long the lines are, if this is true then Verizon iPhone was a huge success. And when iPhone 5 comes out on both carriers, I feel like apple will be back in contention for most activations.

Plus by then we should have palm on the market as well, which will likely dilute the android sales more then iPhone sales if it is successful.
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post #21 of 30
Quote:
Originally Posted by Wiggin View Post

Sure it was announced Jan 11th, but it wasn't available until Feb. Even if you theorize that every potential Verizon buyer held off and waited as soon as they heard the Jan 11th announcement, that's still 15% of the quarter that Verizon missed out on. Extrapolate that out and you get to about 3.5 million Verizon iPhones vs ATTs 3.6 million. Add in the fact that not everyone would have waited between Jan 11th and availability, folks thinking they'd just wait until June for the iPhone 5 (oops), and that any potential ATT-to-Verizon switchers are waiting for their contracts to run out, I'd call it a wash.

Sure, Verizon should have gotten a kick from pent up demand, but ATT also has multi-year head start to build up an upgrading customer base. And let's face it, most people probably couldn't care less about the whole ATT v Verizon debate.

I'd give it at least another quarter before passing any judgement.

I see your point and took all that into consideration, but Verizon customers didnt miss out from buying the iPhone this past quarter and they would have experienced a surge that AT&T wouldnt have had as of Feburary.

Remember, we were told that everybody was waiting for the iPhone on Verizon and that sales would be through the roof compared to AT&T (which everybody hates). IOW, if you really wanted and Verizon iPhone you would have been on the ready as of January 11th with the official confirmation.

My point was that the situation isnt as dire at AT&T as some were saying. Next quarter well certainly get a better idea of the interest between the two companies. Personally, I wont give up the fast data or simultaneous V&D.
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post #22 of 30
Quote:
Originally Posted by sheff View Post

Haha, the reincarnation of Teckstud.

3 Million iPhones on Verizon, when ATT activated 3.6 is huge! Forget how long the lines are, if this is true then Verizon iPhone was a huge success. And when iPhone 5 comes out on both carriers, I feel like apple will be back in contention for most activations.

Plus by then we should have palm on the market as well, which will likely dilute the android sales more then iPhone sales if it is successful.

Verizons earnings are tomorrow. I look forward to seeing if and/or how much the iPhone disrupted Android on their network. Of the iPhones they activated how many were new to Verizon? How many were using dumbphones never having touched a smartphone before? How many were using BBs or Android-based devices? Will the shift in device vendors look like AT&T in a year or two, or does AT&Ts poor Android-based device selection greatly affect their sales?
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post #23 of 30
Gartner isn't even going to get the rest of this year right much less the next 3. It was pretty obvious that iPhone was going to gain ground on Android once it was available on more than one carrier. I know someone that was using an HTC Android phone and switched to the iPhone when she was offered an upgrade. She said she likes her iPhone a lot more than the Android phone because the Android phone froze and crashed a lot.

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post #24 of 30
Quote:
Originally Posted by solipsism View Post

The first poster has to derail a thread. Teckstud, anyone? :sigh:

Moving on Its one thing to say that people didnt jump to the Verizon iPhone mid-cycle, but its a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.

It's a few things:
-Feb. is a really odd time to launch a phone with Verizon. Because of their typical release cycle (and it being so soon after christmas) a lot of customer's wouldn't be eligible. For example, anyone with an Android phone currently is still under contract and will be until at least July. Sure, you have the holdouts who held onto their upgrade. But most people won't be coming up for upgrades until this summer/fall.
-When it launched, Verizon was already hyping "4G" phones. For people who want the coolest tech gadget, this could give them cause to hold on purchasing, even if they're waiting for a 4g iphone.
-Verizon significantly changed their upgrade policy before the iphone launch, removing things like Annual upgrades. They also made it so that you couldn't use Alternate upgrades (using another upgrade on your account and then switching it to your line) in most stores.

Another reason (related to the last point) is how the reps will deal with the iphone. The problem is that for a lot of them, they would make more money on a customer in commission if that customer bought ANY other phone. For example, one of my friends works for a local store. If he sells an Octane (simple messaging phone) he makes $10. If he sells a Droid/Blackberry he makes between $40-$60. If the store still has any Palm's lying around, he can make up to $100. If he sells an iPhone... he'll make between $2.50-$5. On top of Apple having a very different return/warranty policy, which leads to a lot of confusion with longstanding Verizon customers who don't understand why local stores can't troubleshoot issues on their devices anymore.

Now, for people like you and me, we don't really go off of what a rep recommends because we know more than the average customer about the technology and what we want. But most customers come in looking for something that is "Cool" and is an "upgrade" from their old phone. In that case, a lot of reps are going to be doing everything they can to steer customers away from an iphone. Both because of the increased commissions, and because it means fewer headaches since those devices are still "Business as usual" when it comes to support.

But sadly, the biggest reason the sales figures are so low (IMO)? There are STILL a ton of people who assumed that if Verizon got it, they could activate it without a data plan since they "never go online on their phone."
post #25 of 30
Quote:
Originally Posted by Parttimer View Post

That's easy! Every iPhone/iPad user has registered an account in the App Store. iTunes has many hidden talents. And in the recently amended EULA Apple reserves the right to 'share' account data with unspecified third parties, for unspecified purposes... I.o.w. they've given themselves a blank cheque to do with your very personal data whatever they want!

Blank check? That implies giving your name 'openly' with that data. That would open Apple to huge legal exposure. They haven't appeared to be that stupid.
Obviously you are concerned about security, rightly so, thus you know about hash accounts etc. If implement properly, with high encryption, even apple doesn't know which user data goes to which user id.
Knowing this, and your are still concerned about 'very personal data' being used 'as they want', can you share your concerns about what 'very personal data' do you mean and how this exposure comes about?
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post #26 of 30
Quote:
Originally Posted by Parttimer View Post

And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!

Steve IS Big Brother!

Check here to see how your devices are being tracked and logged.

Find My iPhone? Places?
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post #27 of 30
Quote:
Originally Posted by Parttimer View Post

And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!

Steve IS Big Brother!

Check here to see how your devices are being tracked and logged.


And loving it
http://scoopertino.com/apple-embrace...wl-commercial/

Don't get freaked out, it's a joke.
post #28 of 30
Why do you surmise that the Thunderbolt only sold 260,000 units?


Quote:
Originally Posted by Menno View Post

But sadly, the biggest reason the sales figures are so low (IMO)? There are STILL a ton of people who assumed that if Verizon got it, they could activate it without a data plan since they "never go online on their phone."
post #29 of 30
Quote:
Originally Posted by TenoBell View Post

Why do you surmise that the Thunderbolt only sold 260,000 units?

I Don't know the real reasons, but here's what I think contributed to it:

-Stupid rumor cycle, best buy flops (seriously.. why does ANY company trust them with big launches?) made a lot of people either get another phone, or wait to see what other LTE models would come out. There was a pretty big backlash over the launch, especially considering people received official Verizon advertisements saying the Thunderbolt was "Available" before it was even officially given a release date.

-It's not a dual core phone, so the "OMG SpecS" people are holding out for a phone like the Bionic or something similar, even though no phone version of Android handles dual core yet.

-It's $50 more on contract than many other high end phones, and you can get a phone like the Incredible (which is still a great phone) for $100 or less. I know $50 doesn't sound like a lot, but Cellphone customers are stupidly cheap. They will choose a device they KNOW they won't like because it's "free" or it's $10 cheaper than the phone they would actually want. I wish I was kidding, but I'm not. Contract pricing is probably the BIGGEST thing holding back cellphone innovation right now.

-LTE isn't available in a lot of locations yet, and even though the monthly pricing is EXACTLY the same, people won't get the LTE model. Again, most customer's don't understand tech.

-And of course, it's not an iPhone. I won't make any statements on quality because to each their own. But again, the average consumer doesn't understand a lot of the differences between Android, iOS, or even Blackberry (again, I'm sadly serious). But the iPhone has, by far, the biggest brand recognition. And the thunderbolt wasn't an iphone, it wasn't even a "DROID" branded device.

Funny aside story: I had someone ask me if the iPhone for Verizon would be "Droid" branded, because his work said he could choose and Droid phone. That's how the average customer understands marketing.

Full Disclosure: I used to sell cellphones for a Verizon retailer, so I interacted with "Average" customers daily. I'm not trying to make fun of them. People are smarter in other areas than I'll ever be with tech. It's just interesting to take a step back and see how the "Non-enthusiast" views the technology/brands we get so heated about online.
post #30 of 30
Quote:
Originally Posted by Menno View Post

I Don't know the real reasons, but here's what I think contributed to it:

-Stupid rumor cycle, best buy flops (seriously.. why does ANY company trust them with big launches?) made a lot of people either get another phone, or wait to see what other LTE models would come out. There was a pretty big backlash over the launch, especially considering people received official Verizon advertisements saying the Thunderbolt was "Available" before it was even officially given a release date.

-It's not a dual core phone, so the "OMG SpecS" people are holding out for a phone like the Bionic or something similar, even though no phone version of Android handles dual core yet.

-It's $50 more on contract than many other high end phones, and you can get a phone like the Incredible (which is still a great phone) for $100 or less. I know $50 doesn't sound like a lot, but Cellphone customers are stupidly cheap. They will choose a device they KNOW they won't like because it's "free" or it's $10 cheaper than the phone they would actually want. I wish I was kidding, but I'm not. Contract pricing is probably the BIGGEST thing holding back cellphone innovation right now.

-LTE isn't available in a lot of locations yet, and even though the monthly pricing is EXACTLY the same, people won't get the LTE model. Again, most customer's don't understand tech.

-And of course, it's not an iPhone. I won't make any statements on quality because to each their own. But again, the average consumer doesn't understand a lot of the differences between Android, iOS, or even Blackberry (again, I'm sadly serious). But the iPhone has, by far, the biggest brand recognition. And the thunderbolt wasn't an iphone, it wasn't even a "DROID" branded device.

Funny aside story: I had someone ask me if the iPhone for Verizon would be "Droid" branded, because his work said he could choose and Droid phone. That's how the average customer understands marketing.

Full Disclosure: I used to sell cellphones for a Verizon retailer, so I interacted with "Average" customers daily. I'm not trying to make fun of them. People are smarter in other areas than I'll ever be with tech. It's just interesting to take a step back and see how the "Non-enthusiast" views the technology/brands we get so heated about online.

I think it's going to get harder and harder to sell new marquee premium Android phones. Model fatigue is already setting in, you can only go the "OMG! Awesome! New Best Android!" well so many times before people start getting wise. Current Android phones selling for $100 or less are plenty capable, spec pounding is unlikely to persuade many.

After that, it get's harder and harder to sell even $100 Android phones, since Droid Incredible level handsets quickly move to the free with contract bin. When Android is on practically every phone in the store and half of them are free, you're communicating to your customer base that Android isn't worth very much-- it's just the default OS on whatever cheap ass phone comes to hand. In the face of that, once you hit a reasonable level of functionality, how do you keep selling $200 phones in any real numbers? After all, a huge percentage of those Android phones being sold are just getting used for email, texting and web access, with maybe a few currently popular games thrown in. If all of those things work well, why do you need to spring for the latest super awesome?

The iPhone has opted for entirely different model, maintaining price points and communicating value. Yearly updates means you don't have to figure your expensive new best phone will be rapidly eclipsed, and the improvements are likely to be substantial rather than incremental.

The race to the bottom that happened in the PC world (with dire results for the profits of the participants) is happening double time in the Android world. Apple has already shown that it can thrive by swimming against the tide in the PC market, I suspect they'll do the same in mobile.
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  • US iPhone sales up 155%, suggesting sales of roughly 3 million Verizon iPhones
AppleInsider › Forums › Mobile › iPhone › US iPhone sales up 155%, suggesting sales of roughly 3 million Verizon iPhones