Study Shows Why Verizon Needs Apple’s iPhone To Battle With AT&T

News | Friday December 10 2010 12:34 AM | Comments (0) Tags: , , , , , , ,

Horace Dediu of market intelligence firm Asymco has in his latest blog post offered a detailed analysis of the smartphone scenario in the US vis-à-vis the top carriers in the country – AT&T and Verizon.
According to Dediu, going by the data he has from ITG, even with the impressive sales numbers notched by Android smartphones on its network, Verizon has not managed to increase the number of smartphones sold on its network. In fact, had it not been for Android, we would have seen a steep drop in the number of smartphones sold on that network.
According to Dediu, while Android smartphones on Verizon might have notched up impressive sales numbers, they were in the process mainly eating in to the market share held by smartphones based on other platforms on the Verizon network. This means, the actual growth was only for Android which managed to find new customers on Verizon – at the expense of platforms like Palm’s WebOS and RIM’s BlackBerry – both of which saw a slump in the number of units sold on Verizon, month on month. To summarize things, Dediu adds:
In an apples-to-apples comparison, in Q3 the iPhone at AT&T outsold Android at Verizon by a factor of 2.5. This is with a variety of devices and vendors thrown in the market. We hardly ever get to see this finely grained a comparison when looking at platform
Coming back to the possibility of increased Android dependency for Verizon, he goes on to add that this could prove to become a very uncomfortable situation for Verizon when a situation arises where over 90% of its smartphone sales would come from Google’s Android platform. In such a scenario, Verizon would be literally at the mercy of Google and could also agree to many of Google’s demands – just to keep its sales running.
As of today, Verizon has perhaps foreseen the aforementioned Google scenario and has been left with no choice but to accept Apple ’s terms and bring the
to its network – a move that could thwart Google’s plans to become the dominant player on Verizon. AT&T on its part, has already readied itself for any potential loss of consumers when the
eventually offered by Verizon sometime next year. AT&T has started to sell different smartphone offerings based on various smartphone operating systems – including Android and Windows Phone 7. The idea seems to be to gradually wean away from its years of iPhone dependence.
Dediu has also opined that he expects Verizon to sell at least eight to 12 million iPhone ’s when the device arrives on the platform. The obvious loser here would be Google in this case because Verizon happens to be the single largest carrier for Android smartphones. The fact that Google had compromised its stand on net neutrality policy when it comes to Verizon should be an indicator as to how important Verizon is for Google.
As of now, the scene looks grim for Verizon currently but things could change dramatically once the iPhone does arrive on its network. What do you think? Let us know in the comments section below.

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