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Analyst: 17% of Verizon Customers Waiting for iPhone

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Apr 12, 2001
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Fortune reports on a new research note from Morgan Stanley analyst Katy Huberty incorporating survey data suggesting significant upside for the next iPhone upgrade cycle. One of the most interesting pieces of data to come from the survey shows 16.8% of Verizon customers saying that they are "very likely" to purchase an iPhone once it breaks free of AT&T's exclusivity to land on their carrier. Huberty notes that that demand could add 8 million iPhone sales per year once Verizon gains access to the device.

Huberty also raised her target price for Apple from $275 to $310 on the basis of a number of factors.
In a note to clients issued early Monday, Morgan Stanley's Katy Huberty raised her Apple (AAPL) price target to $310 per share (from $275), suggesting that investors continue to underestimate 1) continued iPhone share gains, 2) better-than-expected iPad demand, 3) the growing Chinese market, and 4) increased penetration of the corporate market.
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Huberty also increased her prediction of 2011 iPhone sales to 61.5 million, 25% higher than the current consensus among Wall Street analysts. Driving that projection is a surge in the percentage of customers looking to upgrade their current iPhones and expectations of Apple being able to offer a $99 iPhone 3GS as part of the hardware revisions expected next month.

Morgan Stanley's Huberty was famously pessimistic on Apple and the iPhone in recent years, but has come around in recent months with significant boosts to performance predictions for the iPhone and iPad.

Article Link: Analyst: 17% of Verizon Customers Waiting for iPhone
 
Article Link
https://www.macrumors.com/2010/05/24/analyst-17-of-verizon-customers-waiting-for-iphone/
that's nothing. 100% of current iPhone owners I know are waiting for iPhone on Verizon. AT&T is that bad here in NY.........
 
It'll be nice when the iPhone monopoly ends, and we won't be forced into exorbitantly expensive monthly fees. The great thing about competition is lower prices.
 
if verizon gets the iPhone, i may switch over. i wonder how many others will do the same?
 
Salacion said:
It'll be nice when the iPhone monopoly ends, and we won't be forced into exorbitantly expensive monthly fees. The great thing about competition is lower prices.
Click to expand...

That didn't seem to happen in the UK when the iPhone went multi carrier. :(

A nice price war would benefit consumers no end!
 
Verizon's new ad campaign

Because we couldn't see past the end of our nose on the first time around...announcing the FOURTH generation iPhone, now available on Verizon's network. :D
 
Same here. I don't have a single friend that wants to stay with AT&T. Not one. AT&T is in big trouble.

617arg said:
that's nothing. 100% of current iPhone owners I know are waiting for iPhone on Verizon. AT&T is that bad here in NY.........
Click to expand...
 
Historically speaking for the iPhone, these "will you buy one" surveys have so far been off by a factor of two once sales actually began.

People will often say they want something, but cannot buy it.

So it's a better prediction that 8-10% of Verizon users would buy an iPhone, which is also more in line with what happened on AT&T.

Or at least those users would've gotten an iPhone last year. Now we have to subtract out many or most of those who've already gotten a subsidized Android phone and are committed for a while. Plus those who really want to stay with Android. (Especially if Verizon and HTC drop out a nice Android slate as a complementary device.)

(For a few years I was a number one proponent of the idea that Apple could sell ten million right away to Verizon users. Now I think Apple has waited too long.)
 
ChazUK said:
That didn't seem to happen in the UK when the iPhone went multi carrier. :(

A nice price war would benefit consumers no end!
Click to expand...

What people fail to realize is that the price war isn't about the consumers anymore. The carriers are fighting to see who can raise the price the highest and still hold market, NOT lower it. If you look at phone sales before the iPhone, most were free to consumers, or up to about $129 USD.

Boom. Along comes iPhone at $500. Suddenly, Apple is making money hand over fist. And it saved the cell phone industry from mediocrity for generations. Suddenly, RIM, Motorola, Samsung, and Nokia had a reason to end their subsidies and jack up their phone prices too. And people started buying.

Price wars are not about how low you can go to get customers. It's how high you can get and keep customers. Dell did the whole bottom of the barrel pricing and look where that got them. Flat sales, flat stock prices, bad customer service, and a reputation for all three. So, whether you like Apple or not, the entire industry owes them a nod of gratitude for revitalizing the mobility sector and invigorating the computer business. At least for this go around. Sustainability is now the biggest challenge for Apple. And for any company. You're only as good as your last big hit.
 
Salacion said:
It'll be nice when the iPhone monopoly ends, and we won't be forced into exorbitantly expensive monthly fees. The great thing about competition is lower prices.
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Ha ha. That's a good one.

You seem to have forgotten what industry we're talking about here.

EDIT:

BayouMan said:
Dell did the whole bottom of the barrel pricing and look where that got them. Flat sales, flat stock prices, bad customer service, and a reputation for all three.
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Exactly. These cell carriers all saw what happened to the PC industry and they'll do anything to avoid it. I'm certain that Verizon will prefer to just price their iPhone plan the same as AT&T's. Sure, they might not get as many customers, but they'll avoid a price war. They'd rather have x customers at $30 a month than 2x customers at $10 a month. Price wars would hurt all carriers, and they know it. So they try to avoid them.
 
Salacion said:
It'll be nice when the iPhone monopoly ends, and we won't be forced into exorbitantly expensive monthly fees. The great thing about competition is lower prices.
Click to expand...


I don't think that having the iPhone on multiple carriers is going to create the price war you're imagining. I don't think rates are going to change much, but you might see bigger subsidies. The rate plans are where the carriers make their money, so I don't expect them to change their pricing all of a sudden, but I do see them having better hardware promotions (Verizon buy 1 get 1?).
 
Too bad those people don't realize Verizon doesn't have 40x the data capacity as it has now to sustain the data demand of iPhone users.
 
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