Verizon to push Apple's iPhone with major 'marketing muscle' - report
Following this week's announcement that the iPhone is finally coming to Verizon, a new report claims that the largest wireless provider in the U.S. plans to advertise Apple's handset heavily over competing Android phones.
Analyst Shaw Wu with Kaufman Bros. cited checks with industry sources in a new note to investors issued on Wednesday, in which he said Verizon will put its "marketing muscle" behind the iPhone. The advertisements are expected to come at the expense of competing smartphones that run the Google Android mobile operating system.
"On its homepage, [Verizon] is already highlighting the iPhone 4 and iPad as flagship products with not much else in sight (save for a Jabra Bluetooth Headset)," Wu wrote.
When Verizon began selling the iPad late last year, the company ran an aggressive ad campaign on TV touting the device's availability. AT&T, on the other hand, had no TV commercials devoted solely to the iPad.
When the iPhone was not on Verizon, the carrier ran a number of campaigns that instead pushed Android as part of the company's "Droid" lineup, including one commercial that portrayed the iPhone as feminine. The series of commercials said that what the iPhone couldn't do, "Droid Does."
Now, with a partnership between Apple and Verizon, Android will face its "first true test," Wu believes. He said while many are interested in seeing how many customers move from AT&T to Verizon, he believes the better question is how many Android users on Verizon decide to switch to an iPhone.
The analyst also commented on the fact that the deal between Apple and Verizon is non-exclusive, a fact that could leave open the possibility of additional carriers in the U.S. like Sprint and T-Mobile. Because the iPhone remains only on Verizon and AT&T at the moment, Wu said it is "effectively exclusive."
"We will be surprised to see if it appears on T-Mobile USA and/or Sprint in the near term, though admittedly with AAPL, sometimes the unpredictable happens," he said.
Kaufman Bros. has a 12-month price target of $395 for AAPL stock, based on a calendar year 2011 earnings per share forecast of $20.05. Wu sees Apple selling 63 million iPhones in calendar year 2011, with Verizon contributing an incremental 2 million to 3 million unit sales per quarter.
Analyst Shaw Wu with Kaufman Bros. cited checks with industry sources in a new note to investors issued on Wednesday, in which he said Verizon will put its "marketing muscle" behind the iPhone. The advertisements are expected to come at the expense of competing smartphones that run the Google Android mobile operating system.
"On its homepage, [Verizon] is already highlighting the iPhone 4 and iPad as flagship products with not much else in sight (save for a Jabra Bluetooth Headset)," Wu wrote.
When Verizon began selling the iPad late last year, the company ran an aggressive ad campaign on TV touting the device's availability. AT&T, on the other hand, had no TV commercials devoted solely to the iPad.
When the iPhone was not on Verizon, the carrier ran a number of campaigns that instead pushed Android as part of the company's "Droid" lineup, including one commercial that portrayed the iPhone as feminine. The series of commercials said that what the iPhone couldn't do, "Droid Does."
Now, with a partnership between Apple and Verizon, Android will face its "first true test," Wu believes. He said while many are interested in seeing how many customers move from AT&T to Verizon, he believes the better question is how many Android users on Verizon decide to switch to an iPhone.
The analyst also commented on the fact that the deal between Apple and Verizon is non-exclusive, a fact that could leave open the possibility of additional carriers in the U.S. like Sprint and T-Mobile. Because the iPhone remains only on Verizon and AT&T at the moment, Wu said it is "effectively exclusive."
"We will be surprised to see if it appears on T-Mobile USA and/or Sprint in the near term, though admittedly with AAPL, sometimes the unpredictable happens," he said.
Kaufman Bros. has a 12-month price target of $395 for AAPL stock, based on a calendar year 2011 earnings per share forecast of $20.05. Wu sees Apple selling 63 million iPhones in calendar year 2011, with Verizon contributing an incremental 2 million to 3 million unit sales per quarter.
Comments
I like it as an Apple share holder but the fact Verizon and AT&T too, stab whoever isn't their favorite flavor of the week in the back, is a bit sickening really when you think about it. But ... I know 'it's a cruel, hard World out there, get used to it'
It's call capitalism- competition. Haven't you ever seen an "I'm a Mac, you're a PC" advertisement?
I like it as an Apple share holder but the fact Verizon and AT&T too, stab whoever isn't their favorite flavor of the week in the back, is a bit sickening really when you think about it. But ... I know 'it's a cruel, hard World out there, get used to it'
Not cruel at all. It's all about biz with these corps. They can turn around any thought, campaign, whatever if it means profits. The users are way more invested in the this vs that technology. That's why you can't insult a salesman. As long as you are still in the market for his/her product, you'll get more "love" than you can handle.
It's call capitalism- competition. Haven't you ever seen an "I'm a Mac, you're a PC" advertisement?
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.
I agree that the next series of wireless ads is going to drive the iPhone mind share much more than it is going to help either Verizon or AT&T. Android phones will be probably be the real loser in this advertising brawl, at least in the short term.
It's call capitalism- competition. Haven't you ever seen an "I'm a Mac, you're a PC" advertisement?
Can you actually see the second sentence I wrote?
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.
One of the reasons that iWork, while excellent has been a bit of a flop.
Not cruel at all. It's all about biz with these corps. They can turn around any thought, campaign, whatever if it means profits. The users are way more invested in the this vs that technology. That's why you can't insult a salesman. As long as you are still in the market for his/her product, you'll get more "love" than you can handle.
Hence my own second sentence. I did actually foresee all the replies like this
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.
They would if it suited their corporate goals, but it doesn't.
The whole purpose of iLife, iWork, Aperture, Logic, Final Cut, etc. is to make sure there are a complete range of products for creatives on the Mac platform. Apple can't have another situation where they are held hostage to the whims of Adobe, etc. to provide applications to run on OSX.
One of the reasons that iWork, while excellent has been a bit of a flop.
As much as I love Keynote and Pages, Numbers is a complete embarrassment of a spreadsheet for power users. As long as that continues, guys like me are going to have to run Microsoft Office instead of, or in addition to, iWork. (And 100% compatibility of .docx documents between the Windows and Mac versions of Word doesn't hurt the Microsoft MacBU cause.)
I like it as an Apple share holder but the fact Verizon and AT&T too, stab whoever isn't their favorite flavor of the week in the back, is a bit sickening really when you think about it. But ... I know 'it's a cruel, hard World out there, get used to it'
If it's any consolation, it's worse in Canada. Up here, unless the manufacturers pay the carriers what is essentially payola, they don't advertise for you at all.
The iPhone is by far the most popular phone and is on all five carriers, but it isn't shown in any of their commercials or on any bus shelter ads, billboards etc., but every single Android phone you've ever heard of is there in living colour day after day.
They don't even list the iPhone in most of their flyers or on most of the boards that describe the plans in their stores. The last glossy flyer I got in the mail from my carrier had five pages of Android/Blackberry phones (out of a seven page flyer), and one little space on the sixth page that mentioned that they also carry the iPhone and told you what the plans were (but no picture of it)
One carrier up here went so far as to advertise their new "HD phone lineup" (totally made up nonsense term of course), but it didn't include the iPhone in this lineup. Multiple multi-million dollar commercials over a many month period for "HD smartphones" without a single mention of the best selling one they have, the iPhone.
Shows you who's paying who for what I guess but it should be illegal IMO.
One of the reasons that iWork, while excellent has been a bit of a flop.
iWork and most of Apple's own software are more like safety net from getting screwed over by third party software developers like MS among others who all of a sudden decides to stop supporting macs. This is so Apple won't be too dependent on others.
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.
Neither of those two companies are carrier services/utilities are they? Your comparison is a non sequitur.
If it's any consolation, it's worse in Canada. Up here, unless the manufacturers pay the carriers what is essentially payola, they don't advertise for you at all.
The iPhone is by far the most popular phone and is on all five carriers, but it isn't shown in any of their commercials or on any bus shelter ads, billboards etc., but every single Android phone you've ever heard of is there in living colour day after day.
They don't even list the iPhone in most of their flyers or on most of the boards that describe the plans in their stores. The last glossy flyer I got in the mail from my carrier had five pages of Android/Blackberry phones (out of a seven page flyer), and one little space on the sixth page that mentioned that they also carry the iPhone and told you what the plans were (but no picture of it)
One carrier up here went so far as to advertise their new "HD phone lineup" (totally made up nonsense term of course), but it didn't include the iPhone in this lineup. Multiple multi-million dollar commercials over a many month period for "HD smartphones" without a single mention of the best selling one they have, the iPhone.
Shows you who's paying who for what I guess but it should be illegal IMO.
Apple advertises their own joint coz they want control on how their products are promoted. I'm surprised they let Verizon do it.
Plus Apple gets a lot of free ads anyways from the press and media talking about what Apple did, is doing, didn't do, and rumored to do.
What would be really funny is if they started doing a can you download it now tag line.
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.
No- I only see Apple working with whomever trying to keep Adobe Flash off the web.
He said while many are interested in seeing how many customers move from AT&T to Verizon, he believes the better question is how many Android users on Verizon decide to switch to an iPhone.
Bingo. Interested to see how the iPhone sales are compared to verizon favorites like the Droid X within Verizon.
Can you actually see the second sentence I wrote?
"Cruel"? "Hard" - are you joking then?
Bingo. Interested to see how the iPhone sales are compared to verizon favorites like the Droid X within Verizon.
Not even close. Android devices as a collective outsells the iPhone but not one single Android model has outsold the iPhone.
They would if it suited their corporate goals, but it doesn't.
As much as I love Keynote and Pages, Numbers is a complete embarrassment of a spreadsheet for power users. As long as that continues, guys like me are going to have to run Microsoft Office instead of, or in addition to, iWork. (And 100% compatibility of .docx documents between the Windows and Mac versions of Word doesn't hurt the Microsoft MacBU cause.)
...macros mavens and pivot chart addicts then you are absolutely correct. Microsoft has ensured a certain level of addictedness to tools like that - even tho pivot chart function was a stupid solution to a major failing.
That being said the concept of not being locked to cell-grid formatting or having to generate a dozen worksheets to present data is pretty attractive on Number's part. For quick and dirty data use it works just fine. As one of the younger members of the line-up I'm sure Apple is going to keep expanding the capabilities of the software.
Keynote is my main tool for any executive presentation, especially since many of my fellow presenters are locked to Powerpain. The ease with which I can develop an arresting presentation and deliver it with high visual impact (and subsequent retention) really disconcerts other presenters. Routinely my presentations are remembered and referenced long after others are forgotten. Although I have recently switched to building presentations in iMovie and may upgrade soon to Final Cut for deeper editing tools and effects.
But you do not see Apple working with HP or IBM to put iLife or iWork on a PC.