The iconic iPhone is finally coming to Verizon Wireless. And the new device will not only support Wi-Fi but the carrier’s CDMA network as well. Verizon, the largest U.S. wireless carrier in terms of subscribers, made the much anticipated announcement on January 11, 2011 at an event in New York City.
Existing customers will be able to preorder the smartphone on February 3rd, and others will be able to do so on February 10th. With a two-year agreement, the device will cost $200 for a 16GB model and $300 for a 32GB model.
In most ways, the Verizon iPhone will be similar to iPhone 4 that uses the AT&T network. However, the smartphone will use Verizon’s older CDMA EV-DO network and not the newer LTE. Unlike AT&T’s device which can tether to only one computer, Verizon’s iPhone will have a five-user Wi-Fi hotspot capability. This functionality has been standard on Android devices.
This is the first time U.S. consumers will be able to choose between two networks for their iPhone device. Lifting AT&T’s exclusive hold on iPhone, the Verizon smartphone will unleash competition in the market for iPhone handsets.
The rollout of a Verizon iPhone embodies Apple’s move to expand the user base of its devices. The move comes as iPhone faces increasing competition from Android smartphones that have flooded the market. In fact, Verizon itself strengthened its position in smartphones by launching Android handsets from Motorola and HTC.
Apple’s iOS has been fighting a losing battle with Google’s Android. While Apple’s OS is technologically more advanced, the company has not been able to match Google’s market savvy. Android smartphones have already overtaken iPhone handsets in terms of end-user sales. (For a better understanding of the two companies’ market positioning, please read Information Consulting, LLC’s report, Google vs. Apple: Clash of the Titans.)
Ever since it introduced iPhone on AT&T’s network in June 2007, Apple kept itself confined to the same carrier. Rather than use all possible carrier outlets for its device, it chose to put all its eggs in one basket. Information Consulting is of the view that Apple may have paid heavy price for this decision.
Due to its Wi-Fi capability, anyone should have been able to use iPhone on any network. But that was not to be. Despite user complaints of dropped calls and poor service on AT&T’s network, Apple’s commitment to its carrier of choice was unwavering. On the other hand, Android devices have been available with every U.S. carrier, giving Google a huge advantage in terms of solidifying its market position.
Information Consulting wonders if other U.S. carriers – Sprint and T-Mobile - will carry iPhone. So far, there are no signs pointing in that direction. Moreover, Information Consulting is curious if Apple will offer the CDMA version of iPhone to operators in emerging markets such as China and India. Failure to do so – and soon – could inflict irreparable damage to Apple’s already vulnerable position in the market.
www.information-consulting.com
