UBS: iPhone to be dominant device on Verizon at launch
An analyst with UBS AG says Apple's Verizon iPhone will immediately become the carrier's top model, eating up sales of other devices, including Android licensees and RIM's BlackBerry.
John Hodulik, in an interview with Bloomberg, said his firm predicts Verizon will sell as many as 13 million iPhones this year, "largely because of pent-up demand from existing customers."
"It?s going to be the dominant device at Verizon as soon as it?s launched, and, I think, cannibalize the other devices they sell,? Hodulik said.
Verizon will provide Apple access to 93.2 million customers, although Verizon has a smaller mix of smartphone users compared to AT&T. Availability of a compatible iPhone may help change that mix for Verizon, which hopes to upgrade a larger percentage of its subscribers to data plans.
Apple has successfully helped AT&T to gain and retain new smartphone customers since launching the iPhone exclusively with that carrier in the US back in 2007. Doing the same thing at Verizon could allow Apple to vastly increase its iPhone sales without major losses at AT&T, which has expressed confidence that it can retain its existing users.
If Verizon can sell 13 million iPhones for Apple this year, it would give Apple an additional $5.2 billion in sales, Hodulik estimated. Apple's stock closed today at $342.45, jumping over 6 points today as Verizon talk reached a fevered pitch.
Last year, Verizon worked to counter the iPhone by promoting phones based on Google's free Android OS. That strategy had replaced the company's focus on RIM's BlackBerry in 2009, and appeared to be successful until the release of iPhone 4. After that, Verizon appeared to see dramatically flatter growth from Android, which seems to have prompted the carrier to partner with Apple on the iPad and begin talks on carrying the iPhone.
John Hodulik, in an interview with Bloomberg, said his firm predicts Verizon will sell as many as 13 million iPhones this year, "largely because of pent-up demand from existing customers."
"It?s going to be the dominant device at Verizon as soon as it?s launched, and, I think, cannibalize the other devices they sell,? Hodulik said.
Verizon will provide Apple access to 93.2 million customers, although Verizon has a smaller mix of smartphone users compared to AT&T. Availability of a compatible iPhone may help change that mix for Verizon, which hopes to upgrade a larger percentage of its subscribers to data plans.
Apple has successfully helped AT&T to gain and retain new smartphone customers since launching the iPhone exclusively with that carrier in the US back in 2007. Doing the same thing at Verizon could allow Apple to vastly increase its iPhone sales without major losses at AT&T, which has expressed confidence that it can retain its existing users.
If Verizon can sell 13 million iPhones for Apple this year, it would give Apple an additional $5.2 billion in sales, Hodulik estimated. Apple's stock closed today at $342.45, jumping over 6 points today as Verizon talk reached a fevered pitch.
Last year, Verizon worked to counter the iPhone by promoting phones based on Google's free Android OS. That strategy had replaced the company's focus on RIM's BlackBerry in 2009, and appeared to be successful until the release of iPhone 4. After that, Verizon appeared to see dramatically flatter growth from Android, which seems to have prompted the carrier to partner with Apple on the iPad and begin talks on carrying the iPhone.
Comments
Sun to rise tomorrow, birds to sing.
Unless the birds fall from the sky without reason.
Unless the birds fall from the sky without reason.
The reason was "severe trauma" to the birds...read "Android" for "birds!"
Best
Now let's see how their network takes the load...
Unless the birds fall from the sky without reason.
LOL. The pigs got their vengeance. The birds never saw it coming.
I have a Palm Pre+, and can't wait till the end of my contract to figure out what route I want to go, and what carrier if I choose to break it off with my current one.
If Verizon can sell 13 million iPhones for Apple this year, it would give Apple an additional $5.2 billion in sales, Hodulik estimated.
Not counting the halo effect with Macs and iPads.
Am I reading the graph incorrectly, or is VZW truely selling more WebOS devices than RIM and Android? If so, then THAT is news right there!
I have a Palm Pre+, and can't wait till the end of my contract to figure out what route I want to go, and what carrier if I choose to break it off with my current one.
They are sitting upon each other as horizontal layers. All those colors equate to the total as represented.
Am I reading the graph incorrectly, or is VZW truely selling more WebOS devices than RIM and Android? If so, then THAT is news right there!
I have a Palm Pre+, and can't wait till the end of my contract to figure out what route I want to go, and what carrier if I choose to break it off with my current one.
Umnmnm yes, it appears you are reading in-correctly at least for last month, as for totals, cannot tell.
Now, am I understanding this correctly, if Verizon were to truely sell 12 million iphones next year(million per month), all things being the same, iphone would take over 50% of the Verizon smart market??
Whole-y underwear! Is this possible??
Verizon will provide Apple access to 93.2 million customers, although Verizon has a smaller mix of smartphone users compared to AT&T. Availability of a compatible iPhone may help change that mix for Verizon, which hopes to upgrade a larger percentage of its subscribers to data plans.
Which simply means more potential upside on Verizon.
Sun to rise tomorrow, birds to sing.
It all depends on how angry the birds are.
Unless the birds fall from the sky without reason.
Must have been from every frustrated Android owner throwing their Android phones away. Some birds may have just been at the wrong place at the wrong time.
A friend (verizon customer) got tired of waiting for the iPhone and they gave her a DroidX last week. I warned her not to due to the rumors proving true. Of course, she told the Verizon rep about it and they told her it was not coming to their knowledge. She flat out told me yesterday she hated her DroidX as it was so clumsy and complicated, including getting very upset when she heard the news about tomorrow.
She's going to see about getting the iPhone since she's had the DroidX for a week and may qualify to get it returned.
I suspect many Android users currently on Verizon will ditch their phones too and swap to an iPhone.
Loving my AAPL!
Am I reading the graph incorrectly, or is VZW truely selling more WebOS devices than RIM and Android? If so, then THAT is news right there!
I have a Palm Pre+, and can't wait till the end of my contract to figure out what route I want to go, and what carrier if I choose to break it off with my current one.
I think it's really a combination of WebOS devices and the older OS.
Umnmnm yes, it appears you are reading in-correctly at least for last month, as for totals, cannot tell.
Now, am I understanding this correctly, if Verizon were to truely sell 12 million iphones next year(million per month), all things being the same, iphone would take over 50% of the Verizon smart market??
Whole-y underwear! Is this possible??
It's true. As the article says, and I've read the same thing on Bloomberg and other business sites, Verizon sells less smart phones than AT&T does. Mostly because AT&T sells so many iPhones. It's expected that Android and BB sales will slow, or even drop on Verizon once the iPhone is available.
We all know the stories from Asia, whereby Apple whips its employees until they each pump out 40 iPhones per minute, etc. It's mind boggling to me how they can produce that many phones, regardless of how big the factories are or how many employees they have working 24-hour shifts.
It'd be awesome to get inside the factory to see how it operates. Amazing.
It's true. As the article says, and I've read the same thing on Bloomberg and other business sites, Verizon sells less smart phones than AT&T does. Mostly because AT&T sells so many iPhones. It's expected that Android and BB sales will slow, or even drop on Verizon once the iPhone is available.
This gives Apple even more leverage over Verizon.
This gives Apple even more leverage over Verizon.
Of course. While Apple needs Verizon to stem the Android tide here, Verizon needs the, let's say, iOS device stream even more. it would be just one more month before AT&T exceeds Verizon's subscriber numbers, and then it would be off, off and away.
Slightly off topic, but you know what amazes me? 13 million. Apple will manufacture 13 million iPhones. Not plastic clothes hangers. Not rubber o-rings. Not Coke bottles. No, they will build 13 million iPhones--ultra-complex iPhones.
We all know the stories from Asia, whereby Apple whips its employees until they each pump out 40 iPhones per minute, etc. It's mind boggling to me how they can produce that many phones, regardless of how big the factories are or how many employees they have working 24-hour shifts.
It'd be awesome to get inside the factory to see how it operates. Amazing.
That means a new Verizon iPhone comes off the assembly line every 2 seconds!
There are 525,600 minutes a year.....13 million/525600 minutes is 25 per minute....
That basically equates to a new one every 2 seconds if they operate 24/7 for 365 days a year!
That's insane!