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Verizon: iPhone 3G has impact, but 'minimal'

updated 11:10 am EDT, Mon July 28, 2008

Verizon on iPhone 3G Intro

The launch of the iPhone 3G has affected Verizon's sales since launch but only in a small way, the company said today when discussing its latest quarterly results. In response to a question during the US phone provider's conference call for its spring figures, the company argues that the Apple device had a "minimally short-term impact" on Verizon since the July 11th launch and that the handset's influence was "disproportionately less" than could be expected for the respective market shares of AT&T and Verizon.

The carrier hasn't provided more precise estimates for any customer shift, although its strategy is less dependent on "any one device," according to company officials. AT&T has said that its agreement to subsidize the price of the iPhone 3G will have an effect on its near-term income but is counting on long-term revenue from contracts to make up the difference.

Verizon also asserts that the original iPhone onwards have had a stimulating effect on its own sales. Over 30 percent of phones sold are now smartphones, the firm says. These devices often have a higher up-front price and are similarly more lucrative in the long term, as customers are more likely to attach data plans and other services that translate to a higher average revenue per month for each user.

The claims follow data from a spring quarter in which Verizon says it added 1.5 million net customers, outpacing AT&T's 1.3 million during the same period and narrowing AT&T's lead in its total subscriber base. AT&T however dealt with iPhone shortages during that quarter that it says affected its results.

By Electronista Staff
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  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999




  1. bloggerblog

    Fresh-Faced Recruit

    Joined: Aug 2007


    maybe true

    That maybe true due to the training the sales-staff was given about how bad the iPhone is and how everyone is not happy with it!! With is total FUD.

    However, had Apple had more 3Gs to sell and if they did not runout of stock on their original iPhone, Verizon's impact would have definitely not have been "minimal".

  1. MadGoat

    Fresh-Faced Recruit

    Joined: Feb 2008


    PR guys are funny

    PR guys... you can see right through them. It had a large impact but they want to blow it off to make their investors feel comfortable.

  1. Roehlstation

    Fresh-Faced Recruit

    Joined: Aug 2001


    What is a large impact

    They sold a million units in the first weekend and would have sold more if they had the stock. I'm Curious how many new subscribers AT&T got with this, I switch wireless providers to buy this phone. And I also want to know who these people are that say the phone isn't that great, what were they using before, I find something new to love my iphone for every day.

  1. digiprod

    Fresh-Faced Recruit

    Joined: Sep 2007


    Buying customers

    Verizon has added wireless customers buying buying Cell one (mostly low paying rural customers) and soon Alltell for billions which will leave the company in debt to the tune of over 50 billion by next year. While AT&T has added 1.3 million customers without buying anything.

    Never saw a line in front of a Verizon store.

  1. itguy05

    Forum Regular

    Joined: Apr 2005



    Joked to my buddy while waiting for the 3g iPhone - we could see the Verizon kiosk below..... Not a person in sight.

  1. robttwo

    Fresh-Faced Recruit

    Joined: Nov 2005


    so little impact

    they had to tell everyone that it has had little impact. Oh brother.


  1. sribe

    Fresh-Faced Recruit

    Joined: Jan 2003


    the truth is in there...

    They're actually right, the short-term impact is minimal. Just note that they didn't say anything about the long-term impact ;-)

  1. testudo

    Forum Regular

    Joined: Aug 2001



    We also don't know the impact for ATT. If they sold most of their phones to ATT customers, there isn't much impact (they keep a bunch of subscribers, but not adding many).

    And considering how many cell phones all these companies sell in a quarter, 1 million isn't a killer number for any of ATT's competitors.

    But no one will know anything until you see Q3 numbers from all these companies.

  1. ender

    Junior Member

    Joined: Mar 1999



    ATT already announced last week that a much smaller percentage of iPhone 3G buyers were switchers compared to the original iPhone launch last year. ATT got the "low hanging fruit" of switchers last year. Of course, basing any judgement on only two week's sales is kinda silly anyway. Ask them again in 6 months...

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