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Verizon: iPhone success estimates "conspiracy"

updated 12:25 pm EDT, Fri June 27, 2008

Verizon iPhone Conspiracy

Estimates that the iPhone will become a widely accepted device are evidence of a bias from those who expect Apple to succeed, Verizon chief Ivan Seidenberg tells the Financial Times in an interview. The executive behind the carrier rebuffs notions that iPhone 3G's up-front price cut to $200 will translate to much larger sales and claims Apple's currently small total marketshare as evidence. Apple is a newcomer that has to prove itself, according to the Verizon head, who also suggests that Verizon itself can be disruptive in a shift to mobile devices from computers.

"There goes the conspiracy again," Seidenberg says. "You're declaring them a winner before they've earned it on the field."

He further criticizes Apple co-founder Steve Jobs, saying the luminary doesn't have absolute control of innovation and that he "eventually will get old," giving virtually any company better chances once Jobs no longer exercises a level of creative control at his firm. Seidenberg nonetheless says that Apple is a "great company" outside of its current presence in the phone industry.

While claiming to be unconcerned, critics have charged Verizon with waging a primarily defensive campaign against the iPhone after turning down an opportunity to carry the device in the US. The company has carried multiple touchscreen-focused phones in the months after the iPhone's original launch, including the LG Voyager and Samsung Glyde, and is commonly thought to have withheld its pricing for the just-shipped LG Dare handset until it could confirm iPhone 3G pricing and adjust if necessary.

The carrier is planning more aggressive moves to upset the iPhone and incumbent carrier AT&T in the future with a planned buyout of Alltel that gives it more subscribers as well as the impending release of the BlackBerry Thunder, Research in Motion's first touchscreen device.



By Electronista Staff
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Comments

  1. derbbre

    Fresh-Faced Recruit

    Joined: Oct 2000

    +9

    Yeah.

    I love it. The iPhone has obviously changed the face of the mobile phone market. Is it any coincidence that so many phones coming from and advertised by Verizon and Sprint look and try to behave exactly like the iPhone? Then this guy wants to dismiss it? Just sounds foolish. Maybe he should try a new stance, "We love the iPhone, it's a great device that has invigorated the high-end phone market, but we think we can to better..."

    Of course, this would mean they have to try and do better.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +3

    well...

    I guess we should also see the same type of people to say people buying a new Verizon phone will have crappy customer service, because we expect Verizon to offer crappy customer service.

  1. eldarkus

    Fresh-Faced Recruit

    Joined: Feb 2004

    +6

    taste that??

    rather bitter if you ask me...

  1. TheBum

    Mac Enthusiast

    Joined: Sep 2001

    +6

    evidence, hah!

    "The executive behind the carrier rebuffs notions that iPhone 3G's up-front price cut to $200 will translate to much larger sales and claims Apple's currently small total marketshare as evidence."

    Pretty flimsy evidence if you ask me. I don't suppose it ever crossed his mind that the reason for Apple's small marketshare is that they've only been in the market for one year. The other manufacturers had a several-year head-start.

  1. 64stang06

    Mac Elite

    Joined: Aug 2007

    +5

    Regret?

    Maybe this is his subtle way of saying he regrets not working with Apple to bring the iPhone to their service instead of being bullheaded.

  1. jameshays

    Fresh-Faced Recruit

    Joined: Mar 2003

    -1

    iPhone Lightning

    Wouldn't iPhone lightning be a good name? Maybe that's what they can call the white iPhone. :)

  1. macnixer

    Fresh-Faced Recruit

    Joined: Mar 2006

    +5

    true but not

    While I accept that the media frenzy has already declared the iPhone as a success (the version 1 was), we have to wait for the v2 (3G) to come and make the mass market. While the price upfront is cheaper now and frankly a closer analysis of $30 for the data for iPhone 3G is cheaper than verizon which is usually $40 plus.

    The iPhone is a good device which has made a difference.

    Coming to Mr. Jobs - he is an innovator. Period. He will get old. Everyone does. Mr. Seidenberg will too. Frankly I see his remarks as a personal vendetta on Mr. Jobs. Smart CEO's do not comment on the personal life and capabilities of other CEO's. Mr. Job's has demonstrated to the world that he has been able to turn around a company from red to green and has taken out the word Computer from the name to come and play in the real world.

    While I agree that the iPhone 2 has to prove itself, the time is not too far. I was talking to friend in India and he says that the networks there are pre-booking iPhones over SMS (talk about it) and it is estimated that in India itself the iPhone will sell around 4-5 million units. That is a lot. On the lower scale considering 1% of the population there buys the iPhone we are talking at least a million. Whoa!

    In the "Art of War" SunTzu speaks:
    If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.

  1. lockhartt

    Fresh-Faced Recruit

    Joined: Apr 2000

    +9

    wow

    "He further criticizes Apple co-founder Steve Jobs, saying the luminary doesn't have absolute control of innovation and that he 'eventually will get old,' giving virtually any company better chances once Jobs no longer exercises a level of creative control at his firm."

    So on one hand he dismisses the iPhone as a minor player, but then basically says chances of success against Apple would be much better if Steve weren't around. Sounds to me like fear and loathing... mostly the former.

  1. lkrupp

    Junior Member

    Joined: May 2001

    -1

    Sour Grapes?

    n/t

  1. mgpalma

    Fresh-Faced Recruit

    Joined: Sep 2000

    +2

    re: macnixer

    What a great quote from "Art of War.' Thanks for sharing it!

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