Verizon iPhone Sales Disappoint - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll