Verizon May Not Need The iPhone

Big red's slowly leeching smartphone customers from AT&T without it

tags: competition · business · wireless · hardware · alternatives · consumers
According to the New York Times, despite not having the iPhone, Verizon's been slowly leeching smartphone customers from AT&T for the last two years. Verizon's share of the smartphone market has jumped from 20 to 26 percent since 2008, while AT&T's smartphone market share has dropped from 45 to 40% during that same period. What's more, Verizon is only paying $300 for each Android, BlackBerry and Palm phone sold, while AT&T pays Apple at least $450 for each unit sold. There's no doubt that having the iPhone exclusive helped AT&T, but there's also no doubt that their inability to provide a network that can handle the device hurt AT&T. The real question is, if AT&T's bleeding subscribers while they have the exclusive, what happens when that deal expires? Monday Jul 19 2010 by Karl Bode


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