Verizon iPhone 4G Sounds Appealing to Big Red Subscribers, 17% of Them Would Upgrade

May 25, 2010, By Sanjeev Ramachandran

A study conducted by Morgan Stanley analyst Katy Huberty has revealed that the idea of Verizon as an iPhone 4G carrier is quickly gaining popularity. Many faithful customers of Big Red are showing a growing interest in a Verizon iPhone 4G, according to the study.

There have already been many rumors of the iPhone 4G releasing through Verizon’s network. Katy Huberty’s study points to 16.8 percent of Verizon’s existing customers wanting to switch over to a Verizon iPhone if and when it becomes available. They would readily buy a CDMA/LTE 4G iPhone from Verizon, helping the mobile carrier to sell nearly 8 million iPhones annually, in a period of two years.

Compared to the figures for Verizon, only 14.6 percent of existing AT&T subscribers show “extreme interest” in an iPhone from AT&T. The overall extreme interest shown in the iPhone has been recorded by Katy at 7. 5 percent. However, AT&T will not be affected even if consumers prefer the Verizon iPhone, says Katy. She also believes that the expiry of the exclusivity deal between AT&T and Apple will not be as disastrous for AT&T as widely imagined. The two companies will even maintain the partnership between them. AT&T’s customers could also remain with the network to avoid paying the Early Termination Fee required to terminate a service contract.

This has been demonstrated in countries like France, where carriers that lost iPhone exclusivity have not been affected very badly. Yet the increasing interest in Verizon iPhone is good news for Apple as it will receive an opportunity to increase iPhone sales. Besides GSM, a CDMA version of the iPhone is also necessary for Apple regardless of the chosen carrier network. This could be the reason for the rumor about 10 million CDMA iPhones being manufactured by Apple.

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