Lead: The author said the foreign media today, Verizon may not be short-term benefit from the right to operate the iPhone, but AT & T would be able to reduce costs through subsidies to improve profitability. In any case,Christian Louboutin Declic 120 suede pumps, Verizon version of Apple's iPhone is the biggest beneficiary.
following article summary:
Verizon Wireless is expected to start operations on Tuesday announced the iPhone, thus breaking the AT & T's exclusive carrier in the U.S. position. The face of it, Verizon seems to derive great benefits from. But for various reasons, iPhone improper timing of landing Verizon,discount Christian louboutin shoes, Verizon's earnings outlook is difficult to make clear.
no doubt, Verizon version of iPhone will attract millions of buyers. In addition, when the nation's largest mobile operator in competition with AT & T smart phones when customers, iPhone will also provide more opportunities.
been issued since the iPhone 2007, AT & T has been the product's exclusive carrier in the United States. The reason why many people did not buy the iPhone, because there are already with other carriers entered into a contract, or is AT & T network congestion misgivings, New York and San Francisco in particular.
about Verizon version of iPhone rumors have been circulating for years, even the clamor in recent months is the dust. Some media reports, Verizon will launch on Tuesday announced with Apple, and will officially go on sale this month iPhone.
Verizon,Christian Louboutin Declic 120 leather pumps, Apple and AT & T have not confirmed the news.
analyst estimates, Verizon version of iPhone sales this year will be 5 to 13 million between,Christian Louboutin Henry Tan, some of which came from the AT & T the contribution from the sales. AT & T iPhone is an important business: 9 months by 2010, through the company's iPhone activation of up to 11.1 million.
many analysts believe the quality of AT & T's network problems, leading to the market there is a lot of pent-up demand, so Verizon in the U.S. this year, the number of iPhone sold more than AT & T.
However, there are some factors that may make potential buyers hesitant Verizon version of iPhone.
Verizon version of the first generation iPhone may only support 3G networks. Broader coverage of the network, and excellent reliability, congestion is also lower than AT & T, but the data transmission speed is far less than the AT & T and Verizon are building the 4G network. Use Verizon's 3G network can not talk while surfing the Internet.
In addition,Christian Louboutin black cutout letter leather Tell Me 120 pump, Apple introduced a new generation every summer the past iPhone, do the same projections, iPhone5 also be released soon. But Verizon may have to wait until next January to be able to operate this product, which will give AT & T's first-mover advantage. This is because the Verizon version of iPhone may be the same one-year upgrade cycle will be followed.
most importantly, operators usually spare no effort to retain customers with contracts. AT & T executives stressed to investors last year, most iPhone users are home and business packages, so you want to unilaterally change the operator will be more difficult.
Because of this, both UBS analyst Rick Johns (John Hodulik) that, in his forecast of 13 million Verizon version of iPhone buyers, 77% will be available from Verizon registered users, rather than new subscribers. This will be a big problem, because Verizon needs to provide subsidies for the iPhone and hope that through a long period of service charges to compensate for this cost.
fact, registered users should upgrade to existing services, Verizon to pay large sums of money. Huodu Rick said that even if Verizon iPhone can bring more services revenue, but subsidies will result in the product this year, Verizon's net loss of 425 million, equivalent to 0.15 U.S. dollars per share.
However, analysts believe that Verizon version of iPhone will not have much impact on stock prices as investors have digested the news.
Verizon Wireless Verizon Communication by the United States and British Vodafone Group, a joint venture. Since mid-July last year,Christian Louboutin Brigette 140 python shoe boots, Verizon Communication stock has risen 40%, AT & T rose 20% over the same period. Monday, Verizon Communication fell 0.03%, to close at $ 35.92, AT & T fell 1.8%, to close at $ 28.34.
for AT & T, the long-term contracts, and other factors will help to retain some iPhone users. U.S. investment firm Stifel Nicolaus analyst Christopher King (Christopher King) estimates that within two years, with 600 million users switched to Verizon, the Barclays analyst James Ratcliffe (James Ratcliffe) expects to switch to Verizon's Users only 100 million.
Huodu Rick said, AT & T will in fact be short-term benefit from lower subsidies, is expected to save 590 million U.S. dollars this year, equivalent to 0.10 per share.
but can not sell the iPhone, so the third and fourth largest U.S. operator Sprint Nextel and T-Mobile will face more competition. Sprint has recently begun to reverse the loss of registered users for many years, but this trend is not stable, and T-Mobile registered users figures stagnate.
other companies may be adversely affected is Google and Motorola mobile companies (Motorola Mobility). In response to the hot-selling iPhone, Verizon has been working closely with Google's co-operation launched to promote the Android mobile operating system. Motorola is one of the main beneficiaries, through the focus on developing Android phones, the company reversed the decline in performance for many years. According to the U.S. financial services firm BMO Capital Markets analyst Tim Long (Tim Long) estimates, Verizon currently contributed about 45% of Motorola's sales of smartphones.
U.S. investment bank Kaufman Brothers analyst Shaw Wu (Shaw Wu) said, Verizon version of iPhone He believes that this will prove to be Android's market share growth is a strength of the dictates, or just a temporary trend, thanks to the weak performance of the BlackBerry's iPhone and other competitors.
correct the error
and the whole process, the biggest beneficiary is the apple. In hindsight,Discount Christian Louboutin shoes, the original alliance with AT & T is entirely a strategic error.
mobile phone manufacturers usually provide a carrier for the U.S. exclusive rights to operate aircraft models, but time is typically only about 6 months. The reason why Apple and AT & T signed a contract for several years, probably because AT & T to break a lot of industry practices. Apple have full control over the software, and will direct users to the Apple music and video store, not AT & T. When the App Store on the line a year later,Christian Louboutin Christian Louboutin Multi Booty 140 boots, still under complete control of Apple.
but with AT & T's exclusive iPhone agreement still limited sales in the United States, partly because many people have been locking the original operator, the other is AT & T's network in the iPhone Users under the huge data usage overwhelmed.
Apple has not carriers of other countries signed a multi-year exclusive agreement, while the U.S. is currently one of the few that only a single iPhone carrier state. But after a few weeks, this treatment will end. (Ding Hong)> Related Topics: Apple and Verizon to launch CDMA version of iPhone Topics> Related reports: Verizon in the first year or $ 5,000,000,000 for the iPhone to provide subsidies to attack Verizon version of AT & T iPhone: Verizon is like entering the slow lane will provide users with unlimited data services iPhone Steve Jobs, or will attend the news conference, said Verizon Verizon iPhone will be released on Tuesday iPhone (map)