Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Five new questions that stem from Bloomberg's Verizon-iPhone report

By | June 29, 2010, 3:13pm PDT

Summary: Reports that the iPhone will come to Verizon in January answers the question that’s been looming for years - but now that Bloomberg has answered that question, five new (and probably more) questions have surfaced.

For years, it’s been one of the biggest questions in consumer tech: When will Verizon get the iPhone? And now that Bloomberg has answered that question - and we await confirmation from Apple and Verizon - consider the new questions to ponder on the heels of this latest according-to-sources report.

What might happen to AT&T’s sales and subscriber numbers? Clearly, there have been people who weren’t willing to switch to AT&T, so those are customers that AT&T wasn’t going to get anyway. But there were also a fair amount of customers who switched solely to get their hands on an iPhone. Will AT&T suffer from a mass exodus of unhappy customers?

What would this do to AT&T’s network quality? The worst thing that could happen to AT&T’s network has already happened. Apple sold 1.7 million iPhone 4 devices in its first few days on the market, creating yet more strain on the network. If all iPhone sales stopped today and users even started to defect, one might think that the AT&T service would get better. Maybe?

What would this do to Apple’s sales of the iPhone? A few months ago, Larry Dignan wrote that news of a Verizon iPhone would freeze all smartphone upgrades. If that’s true, I suspect that would include iPhone upgrades, as well. So, maybe it’s a good thing Apple beefed up sales of the iPhone 4 before news of a Verizon deal got out. AT&T will surely continue to sell iPhones between now and January, but they’re also sure to lose sales as some potential customers hunker down and wait to get the phone they want on a better network.

What could this mean for Android adoption? That’s a bit of a wild card now because Google has had some time to really make Android sparkle, while HTC and Motorola have pulled off some amazing designs for phones running Android. Consumers - myself included - have become fans of Android. But is Android strong enough to stay competitive on a Verizon store shelf next to the iPhone?

Can Verizon’s phone really manage the demands of iPhone users or will it buckle the way that AT&T’s did? If Bloomberg is right with its story, we’ll know the answer to that question this time next year.

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz

Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

Talkback Most Recent of 30 Talkback(s)

  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    If it still requires you to be tied down to a desktop with iTunes installed (which I've never had), it won't be a huge deal. By January, Android will have 5-10 even better phones out.

    iTunes is really the biggest thing holding iPhone back in my opinion. iTunes/Quicktime install is malware. Just google "bonjour service problem" and see how many issues it causes on PC's.
    ZDNet Gravatar
    Droid101
    29th Jun 2010
  • Um yeah I agree with the possible exception of well
    @Droid101
    EVERYTHING you said:P First point iPhone as a product is doing amazingly well with but one provider AT&T. Logically adding another will only increase sales. Does not AT&T sell Android phones? Still sales went through the roof for the iPhone 4 see the correlation to selling on Verizon as well?

    Second I'm glad there is Android for competition only serves to make iPhone better.

    Lastly I would say don't know of your issues with iTunes from what you've stated you've not actually used it. I find iTunes a GREAT product it made the iPod and it does just as well for the iPhone and iPad. As for Quicktime I get a lot of use out of it..... Not as impressed with it as I am with iTunes but still it's good. Yeah if I search the web I can bring up any number of articles about any software/OS/Product you care to name that spins said product negatively and I can find articles about the same product that spin it positively... Your point?

    Pagan jim
    ZDNet Gravatar
    James Quinn
    29th Jun 2010
  • itunes meme
    @Droid101
    please stop the bs about itunes. it works great for organising, acquiring and synchronising your media and data from a computer. something android can't do. but how could you know when - as you said - you never used itunes? only fud by an apple hater?
    ZDNet Gravatar
    banned from zdnet
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    This is actually in reply to the people who previously replied.

    AT&T does sell one Android phone, but it's functionality is crippled compared to other Android devices on other networks.

    iTunes is great if you don't already have your music stored in any way and want to use it to organize it. If you've already set up media storage, iTunes still wants to make you do everything its way. Also, iTunes doesn't recognize FLAC file formats, which are becoming more and more common.

    As for the Windows services iTunes and QuickTime install, they are, for the most part, loaded unnecessarily. If they are required for operation of the program, they load at the time the software is launched. Instead, Apple has them load when the computer is started, which wastes resources. And yes, some people have had issues with them over the course of iTunes' and QuickTime's history. I know that the Mac implementations of these products is quite good, but the Windows counterparts aren't coded quite as well.
    ZDNet Gravatar
    dragontiger
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    @Droid101 "iTunes/Quicktime install is malware"
    You think this is malware! Everything from Google is truly malware. It is Google who records everything you do on their services, filters your gmails, builds a profile on you for their commercial use . . . until they get hacked.

    When I think of malware, I cannot imagine anything worse.
    ZDNet Gravatar
    jorjitop
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    Used to want an iPhone badly....now I have a Droid Incredible and I love it. Not worth going to iPhone now with all the problems allowing apps in the store and the other bugs and flaws it has. Apple waited to long and now Anrroid is firmly entrenched.
    ZDNet Gravatar
    terryzx
    29th Jun 2010
  • Well for you maybe.....
    @terryzx
    Also yes Android exists and is selling but "entrenched"? What does that mean to you? Did you and others fear that iPhone and or Apple was going to un-trench Android? I don't think that is what Apple planned. Apple would not cry any if Android died I'll grant you but I don't think Apple nor (speaking for myself) I was planning or counting on that. Interesting...

    Pagan jim
    ZDNet Gravatar
    James Quinn
    29th Jun 2010
  • drivel
    @terryzx
    just repeating the mindless, fact less drivel of the apple haters? "problems allowing apps"? you gotta be kidding. more than 250.000 are available. what are you missing in the app store? problems and flaws? what exactly? not having a desktop synchronisation tool, being forced to use google services, horrible battery life, fragmentation, bad quality of apps in the market? these flaws? oh wait, that was android.
    ZDNet Gravatar
    banned from zdnet
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    @terryzx
    Haaaaaa-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha! Woo-ha-ha-ha-ha-ha-ha-ha-ha-ha! Haaaaaa-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha! Woo-ha-ha-ha-ha-ha-ha-ha-ha-ha! Haaaaaa-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha! Woo-ha-ha-ha-ha-ha-ha-ha-ha-ha!

    Better now.
    ZDNet Gravatar
    Stinkfoot
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
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    quner456
    29th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    I think iPhone on Verizon would have a larger impact then people *here* think it would. Regardless of how you want to look at it, Android targets 2 major types of consumers; "Geeks" and those who want an iPhone but don't want to switch to AT&T. I know of at least 3 people that got Android phones simply because they were "close enough" to an iPhone while staying on Verizon. I also know about 4 other people whose contracts are up with Verizon at the moment and ask me daily when the iPhone is coming to Verizon.

    There may be a few people here who say that iPhone wouldn't do well because of its "walled garden" and its strange app store policies. The fact is, no normal users cares. As long as the phone has the apps they want they will buy it. There are 1.7 million and counting reasons that prove this fact.

    I'm not going to go right out and say that Android is doomed, but I sense the market share might shift away as peoples contracts come due on Verizon and are able to upgrade their phones. Assuming the iPhone really does land in Verizon's network.
    ZDNet Gravatar
    tk_77
    29th Jun 2010
  • This is the obvious fact that Android users (geek type) overlook.
    @tk_77

    The anticipation for iPhone on Verizon is palatable. I know dozens of people who would buy iPhone on Verizon (current iPhone users switching from AT&T and Verizon customers switching to iPhone). At least a half dozen friends I know bought Android because it's on Verizon and is "close enough" to iPhone. Only one bought Android because he's a big Linux nerd and really likes his Droid in and of itself. The disparity of preference is obvious (but I suppose you need friends to know what your friends think).
    ZDNet Gravatar
    RationalGuy
    30th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    Read a staggering statistic the other day : 53% of VZW subscribers are interested in purchasing an iPhone option on the carrier. Last I knew, they had roughly 50 million subscribers. That's a LOT of iPhones.
    ZDNet Gravatar
    stevek79
    29th Jun 2010
  • RE: Five new questions that stem from Bloomberg's Verizon-iPhone report
    There are 87 million subscribers on the AT&T network and only about 6 million of them are iPhone users, the loss of some or all of them would hardly be 'devastating' and frankly the network would probably be better off without them.

    For all the talk about how the iPhone supposedly 'made AT&T successful' remember that AT&T became the largest carrier in the United States in 3rd quarter 2003, 4 years BEFORE the iPhone...a mark Verizon did not beat until after it bought Alltel

    I was an AT&T customer for years before the iPhone was even a twinkle in Steve Jobs' eye, and all I can say is if iPhone users want to leave good riddance....Verizon deserves nothing better.

    I want the iPhone to be on Verizon because what does misery love? Company!

    Let's spread the iPhone misery far and wide!
    ZDNet Gravatar
    Doctor Demento
    29th Jun 2010
  • I was an AT&T customer before I bought an iPhone
    @Doctor Demento

    The service sucked then (I was using voice only, no data plan), and it still sucks now.

    You can't discount AT&T's success with the iPhone since its has moved the market itself so much. You have no idea what would have happened if iPhone debuted on Verizon instead of AT&T, so it's ridiculous to try to divorce the two.

    Similarly, to AT&T's credit, they gave Apple (pretty much) carte blanche when it came to applications and data services, and just let Apple make a great iPhone experience. AT&T gave Apple the space to create iPhone's success in, so it is a two-way street.

    The thing with Verizon now, is that they built their own Android sub-brand (Droid) which leverages multiple handset makers and takes the lions share of the Android market. It's brilliant marketing and will put Verizon in a better bargaining position when the inevitable iPhone deal really happens.
    ZDNet Gravatar
    RationalGuy
    30th Jun 2010

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