Verizon iPhone Sales Disappoint - InformationWeek
IoT
IoT
Mobile
Commentary
2/23/2011
12:09 AM
Ed Hansberry
Ed Hansberry
Commentary
50%
50%

Verizon iPhone Sales Disappoint

Despite record online sales for the Verizon iPhone, overall sales have been disappointing to those at Apple. Before you read too much into that though, there are a few things to consider.

Despite record online sales for the Verizon iPhone, overall sales have been disappointing to those at Apple. Before you read too much into that though, there are a few things to consider.According to Boy Genius Report, Sales at Verizon are higher on a per store bases for five Apple stores, but they aren't reflecting any pent-up demand. These were sales for the first five days of availability:

  • Thursday: Verizon = 909, AT&T = 539
  • Friday: Verizon = 916, AT&T = 680
  • Saturday: Verizon = 660, AT&T = 471
  • Sunday: Verizon = 796, AT&T = 701
  • Monday: Verizon = 711, AT&T = 618

The Verizon iPhone is clearly moving more than the AT&T model, but this doesn't reflect a market that has been waiting for this day for nearly four years. What is going on?

First of all, for the most part, if someone wanted an iPhone, they'd already have it, even though they might not be on the network of their choice. Even if they wanted to be on Verizon today, they likely have early termination fees (ETF) to contend with. The fee starts at $325 and goes down $10 for each month you are with AT&T. Chances are, people have a hundred or so dollars hanging over their head if they switch now. That is a lot of money to pick up an identical phone on a different network, especially in this economy.

Secondly, as Business Insider points out, this is a horrible time of the year to buy a new Apple product. With March just around the corner, we are only three to four months away from the iPhone 5 if Apple holds to the historical June/July release dates.

I think Verizon will siphon off AT&T iPhone users but due to the ETF, it could take 18 months or so before that cycles through. At that point, the phones should be identical and AT&T and Verizon will duke it out based on pricing and the quality and speed of the network.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll