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Analysts: Apple must make Verizon iPhone to blunt Android

updated 05:10 pm EDT, Wed September 15, 2010

Apple told to end iPhone exclusive to beat Android

Apple has to make the iPhone available for Verizon and other carriers if it wants a chance at competing with Android, Bernstein Research analysts Pierre Ferragu and Toni Sacconaghi urged on Wednesday. Noting that Google has tripled its growth to 200,000 activations per day in just seven months, the bankers called Apple to make the iPhone available for the carriers that have become safe havens for Android, including not only Verizon but also O2 and Vodafone in Germany, China Mobile and Japan's NTTDoCoMo. If it doesn't happen, Android's total installed based could overtake Apple's in about 15 months, Bernstein wrote.

The move would be important even if Apple had to sacrifice some control over pricing. The added sales would still help pad the company's overall gross profit margins and prevent Google from maintaining a "strong foothold."

Apple is technically on more carriers than Google, at 154 versus 59, but the ones Google reaches often have a larger impact. Verizon is larger than AT&T with 82 million full subscribers. Most of China Mobile's customers are prepaid and might not ever see an iPhone, but it still has 90 million subscribers.

iPhones are believed in the works for some of those carriers. The CDMA iPhone could be ready as soon as early 2011, Ferragu and Sacconaghi said, but German expansion is likely. A T-Mobile US version has also gained traction and could lead to editions for smaller Canadian carriers by extension. Some of these are technical challenges, as Apple would need to produce a GSM phone with 1,700MHz 3G to serve T-Mobile and TD-SCDMA to accommodate China Mobile.

No matter which company led in share, Bernstein's researchers expected Nokia and RIM to suffer the most since neither is as interesting to customers anymore. RIM was singled out as needing a "fundamental change" to avoid losing users to Android and iPhone.

by MacNN Staff



  1. psdenno

    Joined: Dec 1969


    I understand....

    ..... the concept, but who is really losing market share/sales? Are iPhone sales down as a result of Android's 200,000 activations per day or is Apple still contentedly plugging along, selling all the phone is can make? Just asking.

  1. eldarkus

    Joined: Dec 1969



    Thank you Captain Obvious!

  1. Bobfozz

    Joined: Dec 1969


    once again

    these analysts do not understand Apple's belief system. It's as if these clowns live in a cave, finally come out and they can't believe Apple is doing it ALL wrong!

    Even if Android runs past Apple, I don't think Apple will care. In the end, Apple is the one who gets the quality and services awards, the ferocity of its customers, and the adulation of those who use their stuff. Those ARE the people they love selling to. These analysts have said nor done ONE thing that is worthy of note, stating the "obvious" to a franchise who doesn't give a damn what they think.

  1. tfmeehan

    Joined: Dec 1969



    I think Apple should immediately do what the analysts are calling for because most analysts have such a sterling record in these things.

    Look, I think Apple would be happy to offer the iPhone to multiple providors in the U.S., after whatever exclusive contract they have with AT&T is up, if they can be sure of the same user experience on all networks.

    That's really the bottom line. Controlling their own product so users get what they expect and what Apple intends. Even if Verizon stops trying to play hardball with Apple (according to some accounts), if they can't enable all of the features Apple wants to offer they probably won't get it.

  1. facebook_Justin

    Via Facebook

    Joined: Sep 2010


    comment title

    You guys just don't give up do you. Maybe you don't understand English, or its something else. Let me try to to clear it up. APPLE. IS. A. GOOD. COMPANY. AND. WILL. NEVER. SUPPORT. MONOPOLISTIC. CDMA. TECHNOLOGIES. PERIOD. Understand now?

  1. iphonerulez

    Joined: Dec 1969


    The analysts are jackasses...

    It was probably the same analysts that cried "Apple has to build netbooks or they'll lose revenue and market share." What is it with this BS about "Apple has to stop Android's rapid growth, or else." Or else what? Android activations represent nothing in terms of revenue. Huge market share of a free product is worthless. It's the equivalent value of a big pile of Monopoly money. For every iPhone activation, Apple gets direct revenue into its accounting books. For every Android activation Google gets nothing. So how does even ten times the amount of Android activations over the iPhone make any more money for Google.

    What is the matter with these analysts crying about Android getting some foothold? So what? How does that hurt Apple? If Apple makes a good enough product consumers will buy it. I believe that the iPhone should be offered on more than one carrier in the U.S., but only because it should be made available for more people on different carriers and not just for outright sales numbers. Apple is doing just fine as it is. Already Apple can't meet iPhone demand, so it's not like limited U.S. carriers is the bottleneck at this point.

    If Verizon even tries to control the software side of the iPhone, as a shareholder I would immediately say that Apple should have nothing to do with them. Apple should go to Sprint or T-Mobile. Anyway, roses do not need to compete with weeds in pure numbers. If iPhone growth is limited to less than majority share, then so be it. I have no doubts whatsoever that Apple will earn the majority of revenue in the smartphone industry for at least five years. If the analysts see something else, then I wish they'd say why I'm wrong.

  1. panjandrum

    Joined: Dec 1969


    In agreement

    I would have to agree that being on AT&T is hurting the iPhone. I think it is hurting it more now than when there were no truly decent alternatives. I realize that we have to be careful when using anecdotal evidence, but I simply know far too many people who very much want an iPhone but stay away because of AT&T to believe that I'm somehow special and happen to know a particularly anti-AT&T group of people. On of my coworkers was just forced to switch away from her iPhone (which she loved) because she moved and guess what? AT&T didn't work at all at her new location. Verizon worked fine so guess what OS her new phone runs? Yep Android.

    Comment buried. Show
  1. wrenchy

    Joined: Dec 1969



    It was Apple's choice to provide the iPhone on only one carrier. No one twisted their arm, no one threatened them. It's Apple's way or the highway. Apple is the only one to blame for the failure of the iPhone.

  1. Eldernorm

    Joined: Dec 1969


    Its that duffus Toni Sacconaghi

    Sorry but these arguements miss the fact that its Toni Sacconaghi that posted the article.

    Toni wants Apple to spend all its cash reserves to give him and other investors logs of cash, so he can then sell the stock and b**** about how Apple is dying.

    Toni and others like him like to spout and sputter and if Apple does that and it succeeds, its his idea, if they do it and it fails then they are dumb...

    Sorry, anal-ysts and just that for the most part. 20-20 hind sight.

    Just a thought,

  1. redcapzero

    Joined: Dec 1969


    RE: Hello?


    Redundant you are.

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