Verizon iPhone – Expanding Apple sales and cost of the iPhone

By Peter Chubb - Feb 27, 2010

We all know or shall I say assume that Apple will launch a new version of its iPhone this year, with June looking like the earliest release date. This may not be for the iPhone 4G or whatever it will be called but a cheaper model or models. However, this could also be the month that we finally see Verizon get the best selling smartphone.

An article on MacNN explains how Morgan Stanley analyst Katy Huberty expects Apple to begin expanding its sales of the iPhone by offering cheaper alternatives. It is no secret that the cost of the current iPhone is the main reason why consumers choose other models.

Apple knows that if they want to increase sales further then they will need to break China, the current high prices is preventing that from happening. There are a number of ways to reduce prices; these could be to reduce the cost of monthly tariffs or to use cheaper technology. We will have to wait a few more months to see if this analyst is correct.

Follow us on Facebook, Twitter or Google Plus.

Also See: Verizon iPhone iOS 5 Update via Wireless, Top of Your Wishlist?

  • Hello there, just doing some research for my Montana 4g website. Can’t believe the amount of information out there. Not quite what I was looking for, but great site. Take care.

  • I have been with Verizon forever, was with Sprint for a year or so but dropped them because I never had a good signal with them. I too want an iPhone but will not go to AT&T just to get one and if they're going to release a "cheaper model" my question is will it still be worth it? I'm eligible for my New Every Two with Verizon this summer so I'm anxious to see how this will all play out. I currently own a Blackberry Curve 8330 and love it! Anxiously awaiting …

  • darlene proctor

    Well i have had an iphone for almost a year and when i first got it my service was great! now my service sucks! when i'm at work I have no service at all except text messaging! I'm ready to toss my iphone in the Ohio river!

  • guest

    We're down in Austin TX- which has great coverage by everyone. My new husband has an iPhone on ATT. I've been on Verizon for 6 years now. Been dating the husband for 3. Despite how much I'd love an iPhone, I've had to deal with my husbands HORRIBLE service since I met him. Calls cut out on his end 10x more often than on mine. Weird things are constantly happening with his service- and this has been over the course of a number of phones, so hardware isn't the common factor. Mind you, this is all IN TOWN where service should be rock solid, I won't even go into the hells of venturing outside the "optimum zone".
    My old Treo died last week, with only a month left on contract- so it would have been the perfect time to jump ship to ATT and a shiny new iPhone. Despite my iPhone lust, and the pain not having a pretty new iPhone box to open- I re-contracted with Verizon and got some cruddy little verizon phone. I just can't risk the cruddy ATT service.
    Hopefully Verizon & iPhone will soon see that a partnership would be in both of their interest, as well as in the interest of the customer.

  • Cary

    Here's a thought on Verizon getting the iPhone this summer. AT&T's exclusive agreement for the iPhone is up for renewal this summer. Apple has already partnered with AT&T for a data service deal on the iPad. What if Apple decided they wanted to end the exclusivity deal on the iPhone because of the continued complaints about coverage issues but still partner with AT&T (and appease them) by giving them the iPad deal? Apple and Verizon might not mention anything right now because an early leak would freeze sales until the iPhone was available. AT&T would still benefit from the buzz about the iPad and people wanting that (with their data service plan).

    I think Apple's smart enough to know that an iPhone on the Verizon network would be absolutely HUGE for them even if they have to make a CDMA version. Unfortunately those with an AT&T version would need a new one to work with Verizon but that would just be more beneficial for Apple. By giving AT&T the iPad data plan, Apple would still be keeping AT&T somewhat happy while getting a much larger share of the market with a Verizon iPhone. I honestly don't think Apple will continue to wait until VZW has their LTE totally up and running before they give them the iPhone. I'm betting Verizon knows they thoroughly screwed up the first time by declining the iPhone and doesn't want to make that same mistake again. They'll probably do whatever it takes to appease Apple because they know that their customers would flock in droves to get one rather then Android powered devices which they're offering as a substitute.

    Again, just something to think about. The proof will be in what happens with the AT&T exclusivity agreement this summer. My guess is that something big could happen for Verizon customers. We'll just have to see.

  • Pierre

    Its seems that most Verizon users would love to have an iphone me included, but refuse to switch to a lesser quality service BRAVO! I have emailed Verizon a few times accusing them of poor smartphone options (this is before the android OS). Apple and Verizon have to get over their cry baby hurt feelings and look at all the money they could be making by expanding with each other, GROW UP both of you! Its a win win quit being stupid and make this thing happen ASAP.

  • Georgette

    Please verizon and apple compromise to produce the iPhone through verizon wireless! I have wanted an iPhone for a while now! I currently have verizon and will never switch to AT&T! The service sucks with AT&T!

  • Don

    I don't understand. You can have both. I do. My wife and I have a simple verizon plan, get family calling, my phone is an old beater that simply channels through to my iphone. Yes I have an iphone. The cost is there but I have an iphone and love it, and all my friends can still call me via my verizon phone and if I find myself while traveling out of at&t service I can grab my old verizon phone and make a call.
    Cost is there but you can have the best of both. I also have a mifi so my iphone works off that too!

    • Janee

      well i guess you're made of money. not everyone can afford 2 calling plans, i can barely afford one and with those $30 data fees – its crazy.

      • darlene

        MY THOUGHTS EXACTLY!

  • I am a Mac user, I have and iPod touch and use Mobile Me…. I LOVE how all of these items work so well together…. I don't , however, have an iPhone because of AT&T…. I tried one two years ago and couldn't get coverage in my house or out in my backyard… and I live in the middle of Los Angeles!!!! I have friends with AT&T service that constantly drop calls…. to me that is unacceptable. I have been using Verizon for over ten years now and although I don't like the fact they cripple features on phones and make you use their proprietary software, they have great coverage and customer service……. please Verizon and Apple, make a deal….. give us an iPhone!!!!

    • Notanapplesheep

      AMEN!!! I have Verizon and refuse to switch to att just to get an iphone. My best friend lives in Pasadena about 2 miles north of the 210. On any given day I am at their house, his wife asks to use my Verizon phone to make a call. He is brainwashed apple, so regardless of the lack of att coverage he thinks the phone is the best thing since sex, even though it cant function as a phone half the time. She says that the phone is cool, but not worth the terrible customer service from ATT, the dropped calls and just the fact that she does not get a signal on her iphone when she needs it.

  • r darrell

    Dying for an IPhone….won’t use any provider but Verizon…I and millions of other Verizon customers are in the same boat. The IPhone looks SO good….but I’ve tried the other providers including AT&T and there is just no comparison.

  • Rithy

    ATT has good coverage in New England, so I only have good things to say about them.  Even with their billing and customer service, they've always been good to me.  However, I am mad tha they still haven't offered iPhone tethering.

    If Apple does offer Verizon the iPhone, it will indeed be a cheaper version.  Apple prides its iPhone in the simultaneous talk & internet usage capability, which makes me think they won't be going with Verizon's CDMA network that doesn't allow such a thing. especially since that capability has become an important part of Apple's marketing strategy.  In my opinion, it would be show inconsistency if they provided an iPhone that couldn't do that, and I'm pretty sure Apple is very concerned about consistency.  

    Anyways, I read a while ago Apple was kinda mad at Verizon for turning their "There's an app for that" slogan into "There's a map for that" and tried to sue Verizon for it

    • thy

      and I have to add… I have found that I do use the phone and Internet simultaneously more often than I thought I would. using google maps requires Internet usage, and there have beeen plenty of times friends have called me asking where the nearest so and so is, and it's nice to not have to hang up with and possibly even guide them.

      I actually work at a verizon wireless (but not for them) andtge sales reps say "when would u ever want to use both?"… believe me.. you give human beings luxury… they WILL use it

      • mrsvagant

        Just remember, ANY phone that offers Wifi DOES have capability for the user to talk on the phone & be on the internet at the same time. I even saw a Free Wifi sign hanging at a Burger King for goodness sakes! Talk & talk on the web at the same time with Verizon? Yes you can.
        May I dare say…. there's the HTC Imagio, Blackberry Storm2 & Curve2, just to name a few, are Wifi capable.
        Did I fail to mention D-R-O-I-D. Yes my fellow tech-heads, you CAN talk & surf on the web at the same time with the DROID as well! You do not have to be hooked up to Wifi to do so. It works on CDMA. Plus, it's the same software developers who provide apps between the IPhone & the ANDROID phones.

    • Dee

      Att probably works well in New England because it is so heavily populated, and small but out west where it can be hundreds of miles between towns. (Nevada, Montana come to mind.) with Verizon I have gotten service in the middle of nowhere. When I had ATT (I live in Seattle) I had dropped calls all the time when I called to ask about that it their response was well you live in a town with a lot of hills. That did not happen with my prior cell company. And the biggest hill is only about 650 feet. I have had Verizon about 8 years now and can only count about 5 times i have ever had a dropped call. That's been my experience. :)

  • Thy

    I live in Mass so I’m biased because ATT has good coverage in New England. I only have good things to say about ATT because even with billing issues and customer service, they’ve always been pretty decent. However, I am mad they’re not offering iPhone tethering.

    If Apple does offer Verizon the iPhone, it will indeed be a cheaper version. Apple prides their iPhone in the simultaneous talk & internet usage capability. This has become an important part of their marketing strategy, which makes me think they won’t be going with Verizon, but more likely some other carrier. Verizon’s CDMA network does not allow this simultaneous talk and surf capability.

  • spoonplayer

    I've been wanting an iPhone for years, but a) don't like AT&T and b) can't use AT&T. Verizon's excellent coverage manages to include our remote cabin in northern California, and our reception there has improved significantly over the last 3 years. I used to have to stand on one foot, face north and hold my mouth right to get a signal; now phone calls are hardly ever a problem, and texting always works beautifully and quickly. This matters, because our phones are literally lifelines for two sixty-somethings in the deep woods. We don't have electricity or running water, but we can get help if we need it. I can't throw out what works just because I lust for an iPhone. I had high hopes for a Verizon/Apple alliance so I could finally get my iPhone this year. Now it looks like the possibilities are as remote as our cabin.

  • terrence i

    i love the iphone and i have had verizon,t-mobile,sprint.now at&t the service for the iphone on att drops to many calls i hate it if verizon who in my experience has the best service i would pay the early termination fee to get out of att to verizon.

  • tootles134

    Yup, I won't leave Verizon for AT andT. I need my phone to actually have a signal all the time.

  • Elexa

    I agree with Melinda. I have been wanting a iPhone for a while and so does my mom and dad, but we only get verizon where I live and it is a good company. They are being very stubborn, though, with their 'You missed out on me already and I dont need you' attitude and it is quite annoying. I am no genius so I cant do that little legal trick and stick some microchip up my phone's butt.

    I disagree with 3Geo because you have got to remember WHO IS MORE POPULAR: and that would be verizon. Sprint is kind of small, and Tmobile is still stuck with the sidekick-obsessed. Verizon has been foolish, but with so many oppurtunities, they eventually will get it right. Its just a matter of patience.

    • natalie

      IPHONE came to Verizon because the IPHONE wanted Verizon's network; however, IPHONE had "demands" that didnt fit into the CREDO and ethics of verizon so Verizon politely declined.

  • 3Geo

    Another blow hard bites the dust. Who stands to gain from the speculation about Verizon getting the iPhone. That'd be Verizon, but not because of whay you may think. It would be to create hesitation for those Verizon customers who have held hope that the iPhone will arrive on the Verizon network. It will in time, when Verizon has the next generation network to support Voice and Data on the LTE network that will be constructed over the next 24-36 months. This summer will find the next generation iPhone to hit the AT&T network, and if there is another carrier to add, it will be TMobile, not Verizon, and not Sprint.
    I predict that AT&T will surpass Verizon as the largest subscriber by the end of 2010.
    I have Verizon, but I know of plenty of people that gush over the iPhone and what it can do, as well as the simultaneous use of voice and data. Nearly all secretly will say they haven't "personally had any real issues with AT&T", but do enjoy the day when they have a choice of carrier. That choice will be available in the next upgrade cycle after this summers iPhone.

    • JWalk

      While Verizon certainly will benefit from getting the iPhone, Apple will have the opportunity to gain an additional 89 million customers as well. It would be a good fit for both parties if they can come to some sort of agreement. I wonder, though, with the Android OS being so heavily favored with Verizon, if VZW will ever see the iPhone. Maybe when 4G LTE launches but I'm not holding my breath. The iPhone is great, but the iPhone would be much better on the better network. I know of several people who have switched to Verizon from AT&T because they were dropping calls in the middle of cities. I live in a fairly well populated city and I know for a fact the AT&T does not have very good coverage here. I guess it depends on where you are.

  • Melinda

    I don't believe the cost is the reason not everyone has an Iphone, I believe it's the AT&T service plan attached to it. I've never heard a single person refer to AT&T as good service. There are many phones in the same price range as the Iphone.

    • Alan

      +1 on that! I would love to have an iPhone, but I've been screwed by ATT before and swore never to go back to them… and I won't. I'm not AS happy with verizon compared to Alltel, but so far so good. If verizon went to an iPhone offering, I'd bite. Of course, I'm still a year + out on my Treo Pro device… by the time that contract is up, ANYTHING will look great. LOL

    • Steve

      I absolutely agree. I run a business with my smart phone and I don't even want a cheap phone, I want a smart phone that works, and the iPhone works very well except for the ATT service. I get around it by using a Verizon MIFi for a data hotspot. It works everywhere for data. If I really need voice in a spot without ATT service I borrow my wifes Verizon phone. Can't wait for the Verizon iPhone.

    • Cheryl

      I would be all over it if Verizon could get the iPhone. I would also hope that I could keep the iPhone I have now just have it work on their network (it is only 6 months old). I have always loved Verizon but needed the functionality of a smartphone and I did not like any of the phones offered by Verizon. I VERY reluctantly when to AT&T-but it has only been 6 months and I am miserable. I currently have an iPhone with AT&T and just got a nasty gram from them stating I went over my data limit (I thought it was unlimited). I had to travel to another state for my fathers funeral last week and was apparently on a partner network most of the time and where I used to much data (again I thought it was unlimited-apparently there ARE limits -only 24MB- if you are not on AT&Ts network). Anyway since then and after talking to a rep for over an hour, I found that where I live is not covered at all by AT&T and that there are limits for voice usage on partner networks too (they kindly added a banner to my phone that tells me I am out of network now since my data ordeal). However I also found out from the rep if I go over 40% of my minutes using a partner network I risk (if you want to call it a risk) them canceling my contract-yeah no early termination fees!!!! (as stated from the rep too) I only hope that Verizon can get the iPhone before they decide to cut me off. I will just have to be extra careful of my usage until then. I am begging to you Apple and Verizon PLEASE work together to offer the BEST solution for smartphone users EVERYwhere.

      • jamie

        you wont be able to keep it because verizon and att work off different frequencies. : / lame, but it needs to come to verizon. much better coverage. it is definitely not the cost thats keeping people away, its the fact that they have to drop their carrier to go to att .