RSSNon-exclusive iPhones: Has Verizon waited too long?
By Carmi Levy | Published October 29, 2009, 5:08 PM
I've never been a fan of exclusive deals between handset manufacturers and wireless carriers. I understand why they appeal to the Apples and the AT&Ts of the world in the first place, but it ticks me off that sweet deals like this always seem to leave consumers out in the cold. They limit choice and competition, which tends to keep prices artificially high for longer than they should, and they make it easier for carriers to maintain the kind of old, customer-unfriendly practices that have long stained the industry.
When a given gotta-have-it device is available only through one carrier, consumers are forced to make a Hobson's Choice in that they can choose by device, or by carrier, but not both. And if they dislike the exclusive carrier for any reason, they either hold their noses and sign, or learn to live with another carrier's second-rate hardware.
Either way, it's not exactly democracy in action, and it often results in less than optimal experiences for consumers. We all deserve better.
Change already happened
So it's with more than a little eagerness that I watch rumors of Verizon potentially adding the iPhone to its portfolio around the second half of 2010. While the cynic in me thinks the company's still smarting from its stupid-in-hindsight decision to spurn Apple a couple of years back -- a decision which resulted in AT&T becoming the exclusive launch carrier in the US -- the realist in me says Verizon has better things to do than lick old wounds.
First, disclosure: My fellow Canadians and I are no strangers to iPhone exclusivity. Rogers Wireless has been the sole carrier of the device since its debut here just over a year ago (please don't get me started on why we were iPhone-less until 2008). Canadian exclusivity is about to end as both Bell and Telus are scheduled to start selling iPhones here next month.
I hardly think we're alone, either. From where I sit, it's only a matter of time before exclusivity ends in every market Apple is in, as the company shifts toward a cross-carrier model more like Research in Motion's. Although different carriers obviously carry different BlackBerry models, you've still got a certain degree of choice no matter whose store you walk into, or who's sending you a bill every month.
As encouraged as I am to see Verizon potentially getting into the iPhone game, I'm left wondering if its timing is all that great. After all, the wireless market in the second half of 2010 will look radically different than the wireless market of today. Google's Android mobile operating system -- at one time largely a curiosity, due to its limited availability on none-too-impressive hardware -- is about to bust open big time thanks to high-profile hardware releases from a number of vendors, including Samsung, former Microsoft Windows Mobile stalwart HTC, and a possibly resurgent Motorola.
Within a year, Google's services-rich strategy could fundamentally alter the power balance in the wireless device/application market, and erode the iPhone-vs.-everyone else halo that Apple currently enjoys. That's because while Android's 10,000 titles can't match Apple's App Store dominance, its tightly integrated Web services give it enough room to make an end run around the iPhone, and seriously erode the optimistic sales and revenue figures being floated around a possible Verizon iPhone play. When you've got Web services, you don't always need "an app for that."
The latest rumors, based on a Broadpoint.AmTech report cited by AppleInsider, state that VZW could get away with putting up a $300 subsidy per unit for late 2010-model iPhones, if it (easily) sells 14 million of them the following year. While batting numbers like these around is risky business (risky if you like being right, which it seems fewer people do nowadays), you might still get at least a baseline understanding of why Verizon might think it could pull this off.
The time-eroding value of money
But would Verizon be able to make as much money off of iPhone subscribers as AT&T has managed? Can anyone be just as profitable selling a device in Year Four of its lifecycle, as simply one of potentially many carriers? After all, there's no guarantee that Apple isn't also going to offer its devices to other carriers by the second half of 2010, so maybe Verizon should push for a smaller subsidy to limit its exposure. Or perhaps Verizon should push Apple to source only the latest generation (4G?) iPhone instead of the 3G S, or whatever passes for current-generation at that time. And if Android takes root and closes the feature/app gap, should Verizon push for an even sweeter deal? Or simply walk away?
However it plays out, it's becoming increasingly clear that any delay is bad for everyone:
- Bad for Apple because it keeps an artificial upper limit on market share growth. Worse, because it pushes broader iPhone availability so far out that by then, it'll be competing against itself with the tablet..or whatever that next "One More Thing" turns out to be. Apple's overall product roadmap means iPhone's window as a profit-rich halo device could close before Verizon even gets in the game.
- Bad for Verizon because it needs to build out a robust offering of leading edge smartphones to maintain its shrinking market share advantage. Android-based devices will help, but iPhone would push Verizon over the top headline-wise. Assuming it happens sooner rather than later, of course.
- Bad for consumers because they shouldn't have to wait years for wider carrier availability, and the positive effect on rates and plans that competition of this sort inevitably brings.
None of this would matter if the iPhone were a middling piece of mobile hardware with a barely active application store and moribund developer community. If we all coveted other devices (and if the iPhone wasn't so culturally, if not numerically, dominant), we'd yawn at the prospect of any carrier, much less Verizon, adding a new device to its portfolio.
But the iPhone is none of those things, and consumers deserve to have the choice earlier in the product life cycle. That they may be forced to wait until the second half of next year is further evidence that carrier-exclusive deals make no sense in today's fast-changing mobile market. It's time for them to disappear for good.
Carmi Levy is a Canadian-based independent technology analyst and journalist still trying to live down his past life leading help desks and managing projects for large financial services organizations. He comments extensively in a wide range of media, and works closely with clients to help them leverage technology and social media tools and processes to drive their business.
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|How to Choose a 2010 Prom Dress
You are so excited. You thought this big event would never get here. Here it is only months away and now you have to choose the Prom Dresses that will make you look beautiful and feel confident. There are so many different styles and colors available in Prom Dresses. This is the reason you need to start shopping months before the big event.
Take the time to find out what style best suits you and your body shape. Find out what is popular this year. Trends change drastically every year and you want to be the new girl.
Before Shopping for 2007 Prom Dresses
It is always a good idea to look through up-to-date magazines such as Seventeen, Prom Magazine, and even bridal magazines. You would be surprised at the different fashions you will see and the great ideas from the models in these magazines. If a dress really catches your eye, tear out the page and take it with you when you go shopping for your prom dresses.
Another timesaving step is to take your measurements before you go shopping. Jot down your height and weight. This will give you more time to look. This information will come in handy when you decide to go online and shop.
Knowing how much you have in your budget and which price range best suits you will also save you time.
Shopping for Your Gown
Once you have jotted down your measurements and have set your budget, it's time for the fun part. SHOPPING!!!! Go to every dress shop that you can find in your area or you may have to shop out of town. Visiting different shops will give you an idea of what styles are available this year.
Try on several different Prom Dresses at each shop to help you determine what style and color suits you. If your budget is low, check out the outlet stores and thrift shops in your area. You may be surprised at the dresses carried by these shops. Bridal shops are also a great place to shop for your Prom Dresses.
When choosing your prom dress, you want the dress that best suits your figure. Always buy a dress that fits you now. Do not buy a size smaller and hope that on prom night you can fit into the dress. When shopping for your prom dresses, it is best to shop at stores where the employees can help you and give you advice if needed.
Bright, bold colors seem to be the trend at this time. These colors tend to be eye-catching and bring color to your face. Beads and jewels draw attention by catching the light on your gown.
Keep in mind your undergarments that you will need to purchase such as a strapless bra or corset. You may want to purchase these Prom Dresses before you shop for your dress so you will have them available when you try on gowns.
Remember, keep your options open. If you have shopped 'til you dropped and still have not found that dream dress for your 2007 prom, you can go to a tailor shop and have them design a dress just for you or surf online at your own convenience.
Score: 0
|How to Choose a 2010 Prom Dress
You are so excited. You thought this big event would never get here. Here it is only months away and now you have to choose the Prom Dresses that will make you look beautiful and feel confident. There are so many different styles and colors available in Prom Dresses. This is the reason you need to start shopping months before the big event.
Take the time to find out what style best suits you and your body shape. Find out what is popular this year. Trends change drastically every year and you want to be the new girl.
Before Shopping for 2007 Prom Dresses
It is always a good idea to look through up-to-date magazines such as Seventeen, Prom Magazine, and even bridal magazines. You would be surprised at the different fashions you will see and the great ideas from the models in these magazines. If a dress really catches your eye, tear out the page and take it with you when you go shopping for your prom dresses.
Another timesaving step is to take your measurements before you go shopping. Jot down your height and weight. This will give you more time to look. This information will come in handy when you decide to go online and shop.
Knowing how much you have in your budget and which price range best suits you will also save you time.
Shopping for Your Gown
Once you have jotted down your measurements and have set your budget, it's time for the fun part. SHOPPING!!!! Go to every dress shop that you can find in your area or you may have to shop out of town. Visiting different shops will give you an idea of what styles are available this year.
Try on several different Prom Dresses at each shop to help you determine what style and color suits you. If your budget is low, check out the outlet stores and thrift shops in your area. You may be surprised at the dresses carried by these shops. Bridal shops are also a great place to shop for your Prom Dresses.
When choosing your prom dress, you want the dress that best suits your figure. Always buy a dress that fits you now. Do not buy a size smaller and hope that on prom night you can fit into the dress. When shopping for your prom dresses, it is best to shop at stores where the employees can help you and give you advice if needed.
Bright, bold colors seem to be the trend at this time. These colors tend to be eye-catching and bring color to your face. Beads and jewels draw attention by catching the light on your gown.
Keep in mind your undergarments that you will need to purchase such as a strapless bra or corset. You may want to purchase these Prom Dresses before you shop for your dress so you will have them available when you try on gowns.
Remember, keep your options open. If you have shopped 'til you dropped and still have not found that dream dress for your 2007 prom, you can go to a tailor shop and have them design a dress just for you or surf online at your own convenience.
Score: 0
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http://www.dresses4dancing.com/
http://www.dressupinyou.com/
http://www.hidresses.com/
http://www.digdress.com/
http://www.promdress2go.com/
http://www.promdress2u.com/
Score: 0
|The only problem with this entire article is the notion that Apple will be releasing a CDMA version of the iPhone. Before anyone even bothers spouting 3G/WiFi/Skype/etc combinations to work around this, please remember: non Cellular provider gives a darn about them, because it still has to work as a phone before they'll bother selling a handset.
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|I tend to think that Verizon or not, the Apple brand has durability. iPhones certainly do not have the market share that iPods have, but they are gaining. However, should Verizon pick up the iPhone over the next couple of years, I suspect that market share gain would increase significantly. I don't really see their window of opportunity closing quite so fast.
My only personal concern with Verizon getting the iPhone is whose software / store will be on it. If for some reason Verizon gets to put VCast on the iPhone... screw that. Give me iTunes app store any day. If they were both on there, maybe not so bad. Additionally, Verizon's***ory of crippling phone functionality has me leary as well.
The difference in the data coverage maps is of little impact to me as about 97% I'm in the same area with good 3G reception. I could understand how it might have more impact on people who travel a lot, but I'm not sure how much of the market they represent. Smartphones, especially the iPhone, aren't just for business people anymore.
On a recent road trip to some rural areas of western NC and eastern TN, I still managed to stay in Edge network coverage.
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|The only issue in Western NC is your location. I recently took a new appointment at a church that is almost in Tenn (having moved from Mount Airy (which is almost Virginia). I had to scrap my Sprint phone and purchased a Verizon Smartphone as Verizon is the only national carrier with service in our area. I know this can be a problem at times as there was visitors from Texas here a week ago and had no service what so ever with Sprint, At&T, etc. With that said, as long as you have Verizon here, you have full 3G data on the smart phones ... it really comes down to where you are and what towers are in the area if you are in a rural setting. If you are near a city, chances are you are good either way :-). Take care.
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|Part of the problem in the U.S.A. is that Verizon and Sprint are using CDMA and AT&T, T-Mobile, and a lot of the world are using GSM technology and Apple only made GSM phones. Verizon didn't have a lot of choice. It was up to Apple to make a CDMA version.
The exclusive deal seemed silly but the first year, they were getting a cut of subscription revenue. It's unlikely that they still receive it since AT&T subsidize the price. Besides, the second year, AT&T was barely ready with a 3G data network and T-Mobile had near nothing.
If Qualcomm can get their CDMA/GSM chips into iPhone for the 4th year and beyond, anyone can offer the phone and customers can stay where they're most pleased.
Score: 2
|This is the only thing I hate about Verizon. The fact that all of their phones are not dual-band is nothing less than a complete rip-off.
...that, and true multi-tasking (voice/data at the same time) is all but impossible.
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|Not for an Android phone... MyTouch3G on T-Mobile handles both voice and data at the same time. From what I hear, Motorola Droid will have even better multi-tasking...
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|At some point, Apple will bring out something new and really different, creating an iPhone line. So, the timing isn't just about the current models.
It could be that Android catches up on usability and some great hardware makes the iPhone less important. On the other hand, there may be nothing that really stacks up, none of the WinMo devices seems to have. So carriers should be looking at as many options as possible, including getting the iPhone.
Finally, iPhone users are money and expectations invested in the apps they've bought for their iPhones. If Verizon ever wants to get those users back from AT&T, they may need the iPhone.
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|"At some point, Apple will bring out something new and really different, creating an iPhone line"
Doubtful. We'll see updates, no doubt...and "upgrades" to keep the people buying more phones, but different? They'll still be white, locked to iTunes, without SD, swappable batteries, or the ability to show up in the OS as a file-system.
Without those, who cares what else they do to them?
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|Unfortunately, a lot of sheep will still care... The people who typically (and this is only my opinion) buy iPhones aren't so much concerned with choice as much as they are status symbols. I remember a coworker a few years back (2 months before the iPhone launched) remarking on how cool the iPhone was going to be. When I inquired about features like you listed above, his reply was, and I quote, "Who cares about the battery or storage?! It's still the coolest phone around!". At that point I was convinced that no matter what Apple does (or does not) do to the iPhone, people will flock to it simply because of the branding...
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|Quite a few people (like me,) I know say they'll remain on Verizon no matter the phones offered. The upcoming android is exciting, and I'm probably getting it and saying good bye to WM forever.
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|I have a iPhone, and i would love to see if Verizon could make for a better iPhone.
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|Depends on your definition of better. Verizon can't *make* a better iPhone, but they could offer better 3G coverage (which they already do). However, both Sprint and AT&T are making a huge push on 4G, with VZW right behind them. It's my guess that AT&T is going to abandon 3G and start focusing on 4G due to the lower cost of maintenance, and the fewer towers that it will be required to maintain to cover the same geographical area.
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|Carmi,
"but it ticks me off that sweet deals like this always seem to leave consumers out in the cold"
Your not alone on this, sounded to me like a few weeks ago the FCC wasn't too fond of it either.
Score: 1
|It's not Verizon that waited to long, it's Apple. Verizon will soon have many smartphones to choose from, the iDont will not be one of them.
Personally, I am looking forward to an Android phone on a network with incomparable coverage.
Score: 1
|Bah, Apple isn't sore about it, and I highly doubt VZW is as well. It's business, and VZW couldn't make it simple to sell the iPhone because they stuck to a dying CDMA technology. Most cellular providers are using GSM, so Apple would much rather focus on 70% of the cellular providers, which is a smart business plan. I am curious as to why Apple hasn't chosen to develop a CDMA iPhone, however.
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|I sincerely doubt verizon will pick up the iPhone at this point, especially with the new droid coming out so soon. I don't think they even regret passing it by. If anything i'm sure verizon is taking notes from AT&T's mistakes. The iPhone is just another smartphone. Verizon has plenty of those now tailored to all sort of users. They are competing well enough against AT&T who's really just overshadowed by the iPhone. It ain't the be all tell all of cell phones. it's just another unique device among unique devices.
Score: 1
|The article being referred to here goes on to talk about how much Verizon could make. Can anyone find any evidence here that Verizon has confirmed any of this? I could go on and on about how Company X could make X number of dollars if they sold Product Z, but that doesn't mean a damned thing. This long winded post about something that probably won't happen seems like a waste of time to me.
Score: 1
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