Verizon, Sprint await iPhone onslaught
Marketwatch - June 12, 2007
WASHINGTON (MarketWatch) -- While AT&T Inc. (NYSE: T) executives talk confidently about gaining market share in the wireless business after the iPhone is released, skeptical rivals have reserved their fire. Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA Inc. all say they are prepared for the iPhone, but none has offered a clear strategy to combat the introduction of the highly anticipated device.
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AT&T has repeatedly called the iPhone a "game changer," saying more than 1 million potential customers have made inquiries about the device. Many of them have declined to re-sign annual commitments with their current providers so they'll have a chance to check out the iPhone, AT&T executives say.
"We believe the big shift that will occur is it's going to be an opportunity to take share," John Stankey, AT&T's group president for operations, told investors at a Bear Stearns conference.....
Because the iPhone is a data-intensive device -- Web surfing and music playing are two of its most crucial features -- AT&T expects customers who choose the device will spend more each month. Data plans are priced significantly higher than voice-only service.AT&T executives also figure that iPhone users will prove more loyal, helping the company to cut its current churn rate of 1.7%.
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Nonetheless, rival operators and handset makers have expressed skepticism about whether the iPhone will truly shake up a wireless market in which the vast majority of consumers pay less than $100 for the handsets they own.
They point to the iPhone's $500 starting price tag and note that consumers would also have to sign up for more costly monthly plans."It's an expensive device," Forsee said. "If the customer is buying that for music, then we're going to be able to provide very significant alternatives to that at a much cheaper price point."
.....
But just in case the iPhone proves to be a huge hit, Verizon executives are plotting out their response. "You will see you will see more products from us by year-end, so stay tuned," Denny Strigl, Verizon's chief operating officer said.
iPhone to Support Third-Party Web 2.0 Applications
Apple Inc. (NASDAQ: AAPL) announced on June 11, "that its revolutionary iPhone(TM) will run applications created with Web 2.0 Internet standards when it begins shipping on June 29. Developers can create Web 2.0 applications which look and behave just like the applications built into iPhone, and which can seamlessly access iPhone's services, including making a phone call, sending an email and displaying a location in Google Maps. Third-party applications created using Web 2.0 standards can extend iPhone's capabilities without compromising its reliability or security."
"Developers and users alike are going to be very surprised and pleased at how great these applications look and work on iPhone," said Steve Jobs, Apple's CEO. "Our innovative approach, using Web 2.0-based standards, lets developers create amazing new applications while keeping the iPhone secure and reliable."
Apple Inc. (NASDAQ: AAPL) is one of the top 20 innovators of The Innovation Index, and is the number one innovator for 2007 according to BusinessWeek.
Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.
Download Now
Bottomline:
Rival wireless operators are worried, to say the least. They are betting that iPhone fails. If iPhone succeeds beyond expectations, watch out!! AT&T has the most to benefit, besides Apple. In a move to create a larger base of developers, applications and users, Apple wisely chose to open up iPhone to use any Web 2.0 Internet standard application. This will take some time to sink in, but once it does sink in, can iPhone become a mobile platform? Only time will tell.
Also check:
Countdown to Apple iPhone Launch - Day 3 - June 29 release
Countdown to Apple iPhone Launch - Day 2
Countdown to Apple iPhone Launch - Day 1
Marketwatch - June 12, 2007
WASHINGTON (MarketWatch) -- While AT&T Inc. (NYSE: T) executives talk confidently about gaining market share in the wireless business after the iPhone is released, skeptical rivals have reserved their fire. Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA Inc. all say they are prepared for the iPhone, but none has offered a clear strategy to combat the introduction of the highly anticipated device.
....
AT&T has repeatedly called the iPhone a "game changer," saying more than 1 million potential customers have made inquiries about the device. Many of them have declined to re-sign annual commitments with their current providers so they'll have a chance to check out the iPhone, AT&T executives say.
"We believe the big shift that will occur is it's going to be an opportunity to take share," John Stankey, AT&T's group president for operations, told investors at a Bear Stearns conference.....
Because the iPhone is a data-intensive device -- Web surfing and music playing are two of its most crucial features -- AT&T expects customers who choose the device will spend more each month. Data plans are priced significantly higher than voice-only service.AT&T executives also figure that iPhone users will prove more loyal, helping the company to cut its current churn rate of 1.7%.
.....
Nonetheless, rival operators and handset makers have expressed skepticism about whether the iPhone will truly shake up a wireless market in which the vast majority of consumers pay less than $100 for the handsets they own.
They point to the iPhone's $500 starting price tag and note that consumers would also have to sign up for more costly monthly plans."It's an expensive device," Forsee said. "If the customer is buying that for music, then we're going to be able to provide very significant alternatives to that at a much cheaper price point."
.....
But just in case the iPhone proves to be a huge hit, Verizon executives are plotting out their response. "You will see you will see more products from us by year-end, so stay tuned," Denny Strigl, Verizon's chief operating officer said.
iPhone to Support Third-Party Web 2.0 Applications
Apple Inc. (NASDAQ: AAPL) announced on June 11, "that its revolutionary iPhone(TM) will run applications created with Web 2.0 Internet standards when it begins shipping on June 29. Developers can create Web 2.0 applications which look and behave just like the applications built into iPhone, and which can seamlessly access iPhone's services, including making a phone call, sending an email and displaying a location in Google Maps. Third-party applications created using Web 2.0 standards can extend iPhone's capabilities without compromising its reliability or security."
"Developers and users alike are going to be very surprised and pleased at how great these applications look and work on iPhone," said Steve Jobs, Apple's CEO. "Our innovative approach, using Web 2.0-based standards, lets developers create amazing new applications while keeping the iPhone secure and reliable."
Apple Inc. (NASDAQ: AAPL) is one of the top 20 innovators of The Innovation Index, and is the number one innovator for 2007 according to BusinessWeek.
Download Apple's Innovation Strategy and Learn how Steve Jobs made Apple the #1 Innovative company in the world.
Download Now
Bottomline:
Rival wireless operators are worried, to say the least. They are betting that iPhone fails. If iPhone succeeds beyond expectations, watch out!! AT&T has the most to benefit, besides Apple. In a move to create a larger base of developers, applications and users, Apple wisely chose to open up iPhone to use any Web 2.0 Internet standard application. This will take some time to sink in, but once it does sink in, can iPhone become a mobile platform? Only time will tell.
Also check:
Countdown to Apple iPhone Launch - Day 3 - June 29 release
Countdown to Apple iPhone Launch - Day 2
Countdown to Apple iPhone Launch - Day 1
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