As Verizon profit falls, president praises iPhone innovation
Verizon Communications announced lower quarterly profits Monday, while the company's successful cell phone business was noticeably impacted by the launch of the iPhone 3GS in June.
But Denny Strigl, Verizon's president, said that the mere presence of the iPhone in the market has had a ripple effect on competing devices, which, in turn, has been a benefit for Verizon Wireless.
Verizon has many smartphones that compete with the iPhone. The company intends to launch another iPhone competitor in the Palm Pre, after Palm's exclusive agreement ends with Sprint next year. The largest cell phone carrier in the U.S. also has a new BlackBerry Storm and Google Android phones on the way.
But all of those products are driven by the innovation brought by Apple and the iPhone, Strigl said.
"When you think about what Apple has done in bringing the iPhone into the marketplace," he said during the Q2 2009 conference call, "it truly has accelerated innovation. And as we talk to all of our manufacturers, everybody has come out with their own iconic device, and I think that this has been very good overall for our customers."
Verizon also expects to launch its own application store this year, to compete with Apple's App Store. Company officials have said they will require their store to be installed on new smartphones sold through the company.
Most of Verizon's second-quarter troubles came from its sagging landline business. Total profit was $3.16 billion, down from $3.4 billion a year ago.
Verizon recently bowed to the U.S. government and agreed that it would unlock some exclusive phones for use on smaller wireless carriers. This as members of the U.S. Congress are looking into exclusive cell phone arrangements such as the one between AT&T and Apple for the iPhone.
Last week, Verizon said it added 1.1 million wireless subscribers during the quarter. That lagged behind competitor AT&T, which netted 1.4 million new subscribers -- most of them choosing the iPhone.
Rumors have surfaced that Verizon is secretly prepping its high-speed Long Term Evolution 4G data network for launch in early 2010. This as AT&T chief executive Randall Stephenson is reportedly working behind the scenes to extend his company's exclusive iPhone contract with Apple.
But Denny Strigl, Verizon's president, said that the mere presence of the iPhone in the market has had a ripple effect on competing devices, which, in turn, has been a benefit for Verizon Wireless.
Verizon has many smartphones that compete with the iPhone. The company intends to launch another iPhone competitor in the Palm Pre, after Palm's exclusive agreement ends with Sprint next year. The largest cell phone carrier in the U.S. also has a new BlackBerry Storm and Google Android phones on the way.
But all of those products are driven by the innovation brought by Apple and the iPhone, Strigl said.
"When you think about what Apple has done in bringing the iPhone into the marketplace," he said during the Q2 2009 conference call, "it truly has accelerated innovation. And as we talk to all of our manufacturers, everybody has come out with their own iconic device, and I think that this has been very good overall for our customers."
Verizon also expects to launch its own application store this year, to compete with Apple's App Store. Company officials have said they will require their store to be installed on new smartphones sold through the company.
Most of Verizon's second-quarter troubles came from its sagging landline business. Total profit was $3.16 billion, down from $3.4 billion a year ago.
Verizon recently bowed to the U.S. government and agreed that it would unlock some exclusive phones for use on smaller wireless carriers. This as members of the U.S. Congress are looking into exclusive cell phone arrangements such as the one between AT&T and Apple for the iPhone.
Last week, Verizon said it added 1.1 million wireless subscribers during the quarter. That lagged behind competitor AT&T, which netted 1.4 million new subscribers -- most of them choosing the iPhone.
Rumors have surfaced that Verizon is secretly prepping its high-speed Long Term Evolution 4G data network for launch in early 2010. This as AT&T chief executive Randall Stephenson is reportedly working behind the scenes to extend his company's exclusive iPhone contract with Apple.
Comments
Perhaps this is yet another such indication. It wouldn't surprise me if Apple makes some kind of deal with Verizon after the AT&T deal expires and LTE is up and running. Granted, Apple would need to get some kind of exception to Verizon's "use our app store by default" policy.
SJ wholeheartedly deserves his last laugh on this.
I can't imagine AT&T could offer enough money to offset those two points.
But maybe I'm just a wishful sot, longing for a Verizon iPhone...
All commentary about technology aside (realistic LTE rollout speed, multiple iPhone architecture setups, etc), I simply can't understand how Apple would want to extend their contract with AT&T. Obviously, opening the doors would extend their financial opportunities - that's not even worth debating. But after WWDC, when several of the important new features of the 3GS had to be announced as not available at launch for the country in which the parent company is located... Just on embarrassment alone, that's a relationship-ender.
I can't imagine AT&T could offer enough money to offset those two points.
But maybe I'm just a wishful sot, longing for a Verizon iPhone...
Verizon pulls a lot of crap too. Disabling features of phones like bluetooth etc, very well documented.
That's Verizon's president kissing up to Apple's A**!
Always bet on Apple.
My new iPhone has kept me busy these days with pure enjoyment- no time for AI.
Just a quick hello!
All commentary about technology aside (realistic LTE rollout speed, multiple iPhone architecture setups, etc), I simply can't understand how Apple would want to extend their contract with AT&T. Obviously, opening the doors would extend their financial opportunities - that's not even worth debating. But after WWDC, when several of the important new features of the 3GS had to be announced as not available at launch for the country in which the parent company is located... Just on embarrassment alone, that's a relationship-ender.
I can't imagine AT&T could offer enough money to offset those two points.
But maybe I'm just a wishful sot, longing for a Verizon iPhone...
You know nothing about the contracts the two parties signed for that 5 year period. You also know nothing of Verizon's past practices and current practices towards phone providers.
Verizon pulls a lot of crap too. Disabling features of phones like bluetooth etc, very well documented.
How can Verizon possibly carry the iPhone if they are going to insist on having their own app store? That would seem to be an instant deal breaker for Apple.
Rule of thumb:
Always bet on Apple.
Well said! Yep, Don't be a putz like the music industry, the television industry (HBO, NBC), the movie industry, (Disney, etc), the cell phone industry, (Verizon-2 years ago, Motorola-ROKR), IBM (PowerPC chip maker), Microsoft (Zune, Live, Mobile windows, Vista, etc.), CompUSA, Walmart, HP, Dell, Sony (Desktops & laptops), Scandisk (MP3 players), & China! The list goes on and on! Apple is "schooling" these twits!
Watch out Kindle, Camera manufacturers, Hand-held game manufactures and GPS manufacturers!
Perhaps this is yet another such indication.
Yeah, it's been kinda hard to miss the story-between-the-lines this summer.
AAPL on ATT: ...
ATT on AAPL: we won't always have the iPhone.
VZW on AAPL: Apple is innovative and successful.
Compliments given before deal announcement?
That, another product, of they are still in talks and trying to sway Apple into a deal by doing some brownnosed grandstanding in their favour. I see no other business reason.
My new iPhone has kept me busy these days with pure enjoyment
Now you know what iPhone owners have been experiencing for 2 years. Even more so back in 2007 when comparatively there was less competition to the UI and web browser.
How can Verizon possibly carry the iPhone if they are going to insist on having their own app store? That would seem to be an instant deal breaker for Apple.
It?s Verizon?s rules, if they have to make an allowance for the iPhone then they?d probably do it.
You know nothing about the contracts the two parties signed for that 5 year period. You also know nothing of Verizon's past practices and current practices towards phone providers.
There must be at least two separate agreements between Apple and AT&T as revenue sharing definitely isn't in their latest agreement. It may be that there initial agreement for 5 years but as of now it is only two years from 2008-2010.
Are they kidding? So if I buy an Android phone, it will come installed with two stores selling Android software--the Android one and the Verizon one? If I buy a PalmPre, it will come with a Verizon store selling Pre software, and then the official Palm app as well?
Does Verizon actually think this is good for the customer experience? Could Verizon be any more grasping and stupid than this?
Stay out of the software business, Verizon. Just because one of the best software companies on the planet (Apple) has found success with an App Store doesn't mean you can/should jump on the bandwagon too. You don't know what you're doing. You have zero credibility with developers. You have zero credibility creating easy-to-use software. Stick to what you do well, and leave running an App Store to the companies that develop the phone platforms.
Rumors have surfaced that Verizon is secretly prepping its high-speed Long Term Evolution 4G data network for launch in early 2010.
Aren't LTE and 4G two completely different animals?
Verizon will have its own App Store, and require it to be included on every phone it sells?
Are they kidding? So if I buy an Android phone, it will come installed with two stores selling Android software--the Android one and the Verizon one? If I buy a PalmPre, it will come with a Verizon store selling Pre software, and then the official Palm app as well?
Does Verizon actually think this is good for the customer experience? Could Verizon be any more grasping and stupid than this?
Don't worry, there is no way on this green earth SJ is going to let Verizon get anywhere near the app store. If anything, you may see, "Apple's App Store brought to you by the good people at Verizon" or something like that. I believe Verizon's app store will be for the "dumber" smart phones and the ones which don't have applications on them today. Now that the industry has seen how successful apps can be, everyone is going to get in to the act over the next year or two and allow applications to be run on their phone. Apple right now has the upper hand, just like they did in 1984. Let's hope they don't become complacent like they did back then, and let the rest of the industry catch up.
This is just Verizon putting on a friendly face. They've seen what the iPhone exclusive has done for ATT. They want a piece of the 10" iTouch market.
How many At&T customers will switch to Verizon if they had the iPhone and iTablet.
My guess is a lot. And that translates into dollars.