Once Apple’s iPhone is introduced on Verizon Wireless, Google may lose business. Announcement may happen today in New York that the iPhone will be on the Verizon network. Dan Hays, a partner at Gartner Inc. said a Verizon iPhone may cannibalize about 2 million Android phone shipments a year. The current iPhone carrier in the U.S. is AT&T.
According to Gene Munster, Piper Jaffay Co. analyst, 80% of smartphone purchases in the 3rd quarter is the iPhone and Verizon customers may choose iPhone over Android run devices. Current Android Verizon customers may switch that half may do so.
With its partnership with Verizon, Apple tends to ship 9 million in addition to 11 million shipped to AT&T.
Apple remains to strictly control over the handsets that run its software, Google, supplier of Android to phone manufacturers like Motorola Mobility Holdings Inc. and Samsung Electronics Co.
ComScore Inc said Android is the U.S. top seller with 26% in November’s smartphone market compared with iPhone’s 25%. Research In Motion Ltd.’s BlackBerry share was 33%.
MKM Partners LP analyst Tero Kuittinen said Android phones’ Verizon 1st quarter sales may be cut in half after the iPhone is introduced. But he doesn’t expect the impact to last because the carrier will likely begin promoting its faster long-term evolution network in the second quarter.
Compared with Google, Apple may do a better job at getting more switchers to smartphones said Carl Howe, Yankee Group analyst. 38% of AT&T customers use smartphones against Verizon’s 30%.
iPhone users bills is near $120/month. Howe added that if Verizon can get people who are currently on feature phones to upgrade, that would be huge because smartphone users pay a lot more.
Google didn’t immediately respond to requests for comment.
Google would gain on AT&T’s aggressive promotion for Android devices after it lost iPhone exclusivity. Motorola will roll out its dual-core-processor Android-run smartphones under AT&T this quarter. The new handset will receive massive promotions.
Kuittinen said that as AT&T now has an incentive to promote Android more than it’s done until now, Android there will growth to compensate for much of the decline at Verizon.
AT&T has slashed iPhone prices. Customers were given upgrade options. iPhone 3Gs on AT&T were reduced to $49. Remember that AT&T was showered with dropped calls and slow speed complaints.
While iPhone may get a good U.S. share, it may not have the same effect globally.