Saturday, January 15, 2011

What The Verizon iPhone 4 Will Mean For AT&T, Android

New numbers released by ComScore hint at why Verizon campaigned so hard to get the iPhone in its stead.  Its users are rich and loyal -- the very kind of customers any carrier could ask for.

According to ComScore's data, majority of iPhone users fall in some of the most desirable age bracket for marketers, apart from having household incomes that are equally attractive.  But, that's not really a surprise.  We've all, pretty much, known about that a long time ago.  Instead, the question that's lingering on everyone's mind is: What does the Verizon iPhone 4 mean for AT&T and Android?

AT&T's Woes,

AT&T has the largest US smartphone share at 38%, with Verizon tailing behind at 27%.  A lot of the disparity obviously has to do with subscribers who chose the once-exclusive iPhone over other offerings on the market.

Over the past year, though, AT&T has seen that market share eroded by 7%, all while Verizon (bolstered by its Droid line) saw theirs rise by 4%.  It's a worrisome trend for the carrier, especially now that customers can get the same Apple smartphone from a reputedly more reliable network.  It will be ironic, though not surprising, to see a lot of  iPhone users under AT&T make the switch to a different carrier for essentially the same device.

Android's Future

Between August and November, Android managed to increase its US market share by 6.4 percentage points, all while the iPhone's numbers held steadily.  Of course, RIM still has both platforms beat, but that could all change drastically once the Verizon iPhone 4 rolls out.

If Verizon can manage to give the new batch of iPhone refugees better service than AT&T, we might see a big shift throughout the course of the year.  Worth watching.