Last issue, we reported that Verizon Wireless would begin selling the Apple iPhone in January. But, as Brad Stone and Jenna Wortham of the New York Times wrote (July 14), U.S. number-two carrier Verizon is already gaining ground on AT&T – largely due to its agreement with Google to carry Android smartphones.
“In big cities AT&T’s network has buckled under the data-heavy demands of the iPhone, frustrating customers,” wrote Stone and Wortham. “Verizon has managed to avoid similar problems while working with Google to offer several strong rivals to the iPhone that use the Android (OS). On (July 15), Verizon will begin selling the Droid X, an Android phone that many say may be the fiercest challenge yet to the iPhone.”
Even without the iPhone, Verizon has increased its share of the smartphone market to 26 percent in May, up from 20 percent in late 2008, according to comScore. Over the same period, AT&T’s market share dropped from about 45 percent to 40 percent. It should be noted, however, that these figures do not take into account the impact of the popular iPhone 4, released in June.
“The success of its Android phones has emboldened Verizon to take shots at (Apple CEO) Steve Jobs and the iPhone,” wrote Stone and Wortham. “A recent ad slyly referred to the controversy over the iPhone 4’s antenna design in boasting that the Droid X ‘allows you to hold the phone any way you like and use it just about anywhere to make crystal-clear calls.’” (See Damage Control: Apple Offers Free iPhone 4 Cases.)
Verizon Avoids Tiered Data Pricing
In a move that further differentiates Verizon Wireless from its main competitor, AT&T, the company announced July 23 that it would not switch its 3G data pricing plans to a tiered, usage based model before it launches its LTE network.
“You have not seen us rush out to make any kind of change,” Verizon CFO John Killian said during the company’s earnings conference call on July 23. “We will continue to monitor the situation, of course, and look at opportunities that will say what is the best equation for us to drive long-term shareholder value, and we will be very focused on that. I cannot say enough, though, about the opportunity we see ahead, given where we are today with smartphone penetration.”
“Killian said the wireless carrier is seeing enormous benefits from its smartphone lineup, especially its selection of (Android) phones, such as the Motorola Droid X,” wrote FierceWireless’ Phil Goldstein. “Verizon added 665,000 lucrative retail postpaid customers in the second quarter, outpacing AT&T’s 496,000.”
Android 2.2 Coming Next Week?
“A hot rumor this week predicts that Verizon is rolling out Android 2.2 to the Droid, Droid Incredible, and the Droid X next week,” wrote Scott Webster of CNET News yesterday (July 27).
“An AndroidSPIN source, who claims to be a Verizon employee, said the update is slated to begin August 6 and run through the 15. If true, this coordinated software update between HTC, Motorola, and Verizon would be the first of its kind. Typically, Android upgrades trickle out in a seemingly random order, often preceded by some form of announcement.”
- newsletter@iQmetrix.com
* To read more Verizon News, check out the following articles from iQmetrix News & Views:
Verizon to Sell iPhone in 2011
Microsoft and Verizon to Offer Kin One, Two to Younger Market
A Look at Verizon's Exclusive Skype Deal
Verizon to Launch New Android Phone, the Devour
Verizon, Sprint Both Claim 'Most Dependable' Network
Verizon to Release Motorola Droid Nov. 6