The iPhone 5 will be simultaneously released on AT&T and Verizon w/ a trade in option

Discussion in 'iPhone' started by wikoogle, Jan 15, 2011.

  1. wikoogle, Jan 15, 2011
    Last edited: Jan 17, 2011

    wikoogle macrumors 6502a

    wikoogle

    Joined:
    Jun 12, 2009
    #1
    I've been pretty accurate with my predictions over the years, about the 3GS, iPhone 4, and early rumors indicate that the bulk of the major features requested here will become a reality in the next update... http://forums.macrumors.com/showthread.php?t=1021233

    And this is what my gut is telling me is going to happen re: Verizon...

    a.) Verizon WILL NOT tolerate being left behind in June. Having to sell an old device while their chief competitor gets the new iPhone with a dual core processor, better GPU, no buttons and either a 3.8" or a 4" screen will be a slap in the face. Multiple rumors point to Apple switching to a new antenna chip that supports both CDMA and GSM dual band. They can sell the exact same device to customers on both networks. So it's a no brainer for Apple to release the iPhone 5 for both AT&T and Verizon.

    It's basic business sense. If you were Verizon, why wouldn't you want Apple to release their newest product on your network especially since your competitor will be getting it.

    And if you were Apple, and you already have an antenna that can work on both CDMA and GSM networks, why wouldn't you want your newest product to be sold as widely as possible. Apple makes some serious cash each time an iPhone gets sold.

    b.) Verizon will offer a trade in program for early adopters of the iPhone 4 to get the iPhone 5 for a subsidized price. This keeps their customers happy, and really wouldn't cost Verizon anything. The Verizon iPhone 4's are still in very high demand. Tons of iPhone 4's can be sold refurbished to their current customers for $49 with a 2 year contract renewal. And that still makes Verizon lots of money. I expect that Verizon iPhone 4 owners will be able to trade their iPhone 4 to Verizon, in order to be able to upgrade to the iPhone 5 for likely $199 but possibly for as little as $99. Lots of trade in sites give you $300-400 for old iPhones which they in turn sell to other customers for more, Verizon can do the same.

    Thanks to Apple's brand name and the Retina Display, the iPhone 4 and subsequent iPhone versions will always have much higher resale value than other comparable smartphones. Last July, once I got my iPhone 4 for $199, I sold my 3GS unlocked on ebay for $422, and sold my brothers old 3G unlocked on Craigslist for $270. I doubt a 1-2 year old android phone would have fetched anywhere near as much. I made $322 more money selling my 3GS on ebay than I would have if AT&T allowed me to trade in my 3GS to them, and pay $99 to get myself the iPhone 4. Few people realize just how much money their old iPhones command. AT&T and Verizon could and likely will capitalize on this by letting people trade them in, and if nothing else, turning around and reselling them on ebay at a substantial profit.

    Apple is not going to push back the iPhone upgrade for the sake of Verizon. The iPhone is sold around the world. Lots of new carriers were added mid year only to get a new iPhone released (available on their network as well), a few months later. What makes Verizon so special?

    After 4 years of a new iPhone announcement in June and release in July, customers around the world have an expectation. They know to expect a new iPhone every July. Apple will not let them down. If Apple meant for this Verizon iPhone to be considered the new iPhone model for the whole year, they would have branded it as the iPhone 4V or the iPhone 4S or something. Instead, they are marketing it as the iPhone 4. This is the iPhone 4, the same one they released last July, just with a slightly different frequency. The actual iPhone 5 will be released (on both networks) this July.

    Apple has no reason to screw over Verizon either. They will release a new iPhone in July, and it will be available on both AT&T and Verizon. I'll bump this thread in July once it happens, and if it doesn't, I'll eat my hat.

    As for Verizon's trade in program. It seems very logical, and basically free for Verizon to do something like this.

    They let customers trade in their iPhone 4s, pay $99-$199, and get the iPhone 5. They turn around and sell the iPhone 4s for $49-99 refurbished with a new contract (which is the equivalent of $500 in revenue for them). Their customers are happy. It's win win.

    Both AT&T and Verizon supposedly will have their 4G/LTE networks up and running in 2012. Verizon is promising that it will be ready by February 2012, giving Apple plenty of time to abandon CDMA and test out their new network prior to the iPhone 6's release. Here's how I see this playing out...

    June/July 2012 - LTE/4G iPhone 6 announced and released on Verizon and AT&T simultaneously, iPhone 5 reduced to $99 price point, refurbished iPhone 5's sold for $49 or $69, possibly a trade in program for people with an iPhone 5 to upgrade to the iPhone 6, iPhone 4 phased out completely.

    June/July 2011 - Dual band GSM/CDMA iPhone 5 (or a seperate but otherwise identical CDMA and GSM iPhone 5) announced and released on Verizon and AT&T simultaneously. iPhone 4 reduced to $99 price point. Refurbished iPhone 4's (purchased by Verizon through the trade in program), sold for $69 or $49.

    Cost conscious customers will be able to get their hands on a really awesome refurbished smartphone for a paltry $49/$69 with a two year contract, and that's going to lead to an influx of iPhone adopters. So basically, Verizon will let customers trade in their old iPhone 4 to Verizon, pay $99, $149 or $199, and get their hands on the iPhone 5 with a brand new 2 year contract. Verizon turns around and sells these phones to customers refurbished for $69 with a new two year contract. That $30/$50 in losses they suffer + the cost of refurbishing the phone, will be more than made up for by the 6 month extension that iPhone 4 customers added to their contracts.

    If AT&T opts not to move up people's contracts again as they did with past iPhone releases, they would be wise to offer such a similar trade in program. Trade in your iPhone 4, pay $99, sign a new two year contract, and get yourself an iPhone 5. The trade in phones get sold as refurbished units for $49 with a new contract.

    Apple has every reason to encourage such an aggressive pricing scheme because it will dramatically increase the sales of their devices. This in turn increases app sales, market penetration, and will help them stay well ahead of Android, BB and Windows Mobile 7 phones. Many people who aren't tech enthusiasts, and thus would never consider paying $199 for a smartphone, even an iPhone, probably wouldn't think twice about paying $49 for one, even if it is refurbished. Unlike, Verizon, AT&T and Apple, many people do not take into account just how much the two year contract renewal is going to cost in the long run. Same applies to young people with limited month to month disposable incomes.
     
  2. jav6454 macrumors P6

    jav6454

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    #2
    a) Agree it's a slap to the face to Verizon, but I don't know about this. Manufacturers do this all the time, let one carrier get it first and then release with with everyone

    b) Verizon is not charity.
     
  3. Shasta McNasty macrumors 6502a

    Shasta McNasty

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    #3
    Yeah, keep thinking that. You make no sense. Do you know how many pissed off customers there would be if they did that? Its probably in some part of the contract that they (Att & Verizon) remain separated on iphone schedules. People keep seeming to forget that Verizon needs Apple more than Apple needs Verizon. I highly doubt that they will release two iphones within 5 months.
     
  4. Shasta McNasty macrumors 6502a

    Shasta McNasty

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    #5
    ^Your "duke bound" how does that not make sense? :rolleyes:
     
  5. kdarling macrumors demi-god

    kdarling

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    Location:
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    #6
    If you mean an antenna that would support all the frequencies used by both kinds of networks, they already have that in the current GSM iPhone.

    Or perhaps you meant a newer version of that one, with the death grip issue solved or moved.
     
  6. Rodvette macrumors regular

    Joined:
    Jan 15, 2011
    #7
    Your reason has a possible flaw. Apple very well could skip their cycle this year and wait till January of next year to release both phone at the same time OR wait till next June 2012 to refresh VZ and ATT at the same time.
     
  7. wikoogle, Jan 15, 2011
    Last edited: Jan 15, 2011

    wikoogle thread starter macrumors 6502a

    wikoogle

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    #8
    Lmao, no. Apple is not going to push back the iPhone upgrade for the sake of Verizon. The iPhone is sold around the world. Lots of new carriers were added mid year only to get a new iPhone released (available on their network as well), a few months later. What makes Verizon so special?

    After 4 years of a new iPhone announcement in June and release in July, customers around the world have an expectation. They know to expect a new iPhone every July. Apple will not let them down.

    Apple has no reason to screw over Verizon either. They will release a new iPhone in July, and it will be available on both AT&T and Verizon. I'll bump this thread in July once it happens, and if it doesn't, I'll eat my hat.

    As for Verizon's trade in program. It seems very logical, and basically free for Verizon to do something like this. They let customers trade in their iPhone 4s, pay $200, and get the iPhone 5. They turn around and sell the iPhone 4s for $49-99 refurbished with a new contract (which is the equivalent of $500 in revenue for them). Their customers are happy. It's win win.

    Whatever it is, engadget is reporting that Apple is switching over to an antenna so that they don't need separate devices for Verizon vs. AT&T. Every device supports both basebands.
     
  8. Moyank24 macrumors 601

    Moyank24

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    #9
    :eek:

    I like the one that gets me a new phone in June (via AT&T) ;)


    Well, maybe they want to make some serious cash 2x/year instead of 1.

    Seriously, though, people will come out with 20,000,000 theories about how it is going to go down, but at the end of the day we all won't know for sure until Steve makes (or doesn't make) the announcement in June.
     
  9. -aggie- macrumors P6

    -aggie-

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  10. wordoflife macrumors 604

    wordoflife

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    #11
    In the UK, other carriers (like Orange) were allowed to start selling the iPhone in the begging of the year. Then they started selling the latest iPhone in June too.

    I think it'll be the same with AT&T/Verizon.
     
  11. Givmeabrek macrumors 68030

    Givmeabrek

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    #12
    Except AT&T and Verizon use different iPhones!! It's not like Verizon is selling an existing phone. It's a new model. Big difference. :cool:
     
  12. drew077 macrumors member

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    May 22, 2008
    #13
    Yes manufactures do this all the time, but you can not compare apple to other manufacturers. They are the only ones that held a phone exclusive to one carrier for 4 years.
     
  13. wikoogle, Jan 15, 2011
    Last edited: Jan 15, 2011

    wikoogle thread starter macrumors 6502a

    wikoogle

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    Jun 12, 2009
    #14
    Not really. It's still the same phone. Other than the change from a GSM frequency to a CDMA frequency, the phone is identical.

    If Apple meant for this phone to be considered a new iPhone model, they would have branded it as the iPhone 4V or the iPhone 4S or something. Instead, they are marketing is as the iPhone 4. This is the iPhone 4. The iPhone 5 will be released (on both networks) this July.
     
  14. -aggie- macrumors P6

    -aggie-

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    #15
    You seriously think Apple is going to release two iPhones for Verizon this year???
     
  15. Rodvette macrumors regular

    Joined:
    Jan 15, 2011
    #16
    lmao, no. Apple broke "the cycle"/expectations by releasing a different version of the iphone 4 on the Verizon Network when their was theories flying around that they wouldn't do this till June to stay in sync with "their cycle"

    I am not shooting your theory down because it's not so far out there to believe, just saying i have my own opinion.


    in the end...

    ^this wins :)
     
  16. pika2000 macrumors 68030

    Joined:
    Jun 22, 2007
    #17
    Will Apple ever sell officially unlocked iPhone in the US?

    edit: wrong thread
     
  17. buryyourbrideau macrumors 65816

    buryyourbrideau

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    #18
    Its a chip.
     
  18. Mliii macrumors 65816

    Mliii

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    Southern California
    #19
    I can't see Apple doing this for Verizon and not doing it for AT&T. After all, the bulk of their US iPhone user base will STILL be on AT&T come June. I think the backlash would be substantial.

    Now, it would be different if Verizon was willing to do something on their nickel, but as someone else said, they aren't a charity and I can't imagine it makes business sense for them.

    Consumers buying now know the drill. And if you decide to buy now, you are doing so knowing full well that Apple is likely to refresh the phone come June.
     
  19. 4phun, Jan 15, 2011
    Last edited: Jan 15, 2011

    4phun macrumors member

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    #20

    If this happens Verizon will have effectively kicked Android not only to the curb but out into the street and under the bus!

    No wonder the giveaway OS created by a company that is a master in online advertising is in trouble. Google sees this and has moved this week to try and destroy the use of HTML5 and HD video for cheap images and a crappy video standard that will suffice for shoving advertising on mobile.

    Google doesn't care about their Android users, just about how to shove them into some market to fleece them by some sleazy advertiser. Meanwhile you have a bunch who don't care and live in a fantasy world of free praising the fact others should have flocked and locked into Android with its ubiquitous advertising.
     
  20. wikoogle thread starter macrumors 6502a

    wikoogle

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    #21
    Yes, absolutely, just they did in the past on Orange and multiple other carriers worldwide that they added the iPhone to mid-upgrade.
     
  21. rossihvac macrumors regular

    rossihvac

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    Jun 22, 2009
    #22
    You and pretty much everyone else on this board predicted what was going to happen it doesn't mean your right. In fact I think you are way off. If apple had plans to release a new phone on both carriers, then I think they would have waited till June. My prediction is that they are going to wait until LTE is available on both carriers then release one phone to rule them all. Until then, att gets the new phone and verizon waits.
     
  22. rossihvac macrumors regular

    rossihvac

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    #23
    But those were gsm carriers, it's easier to provide phones to companies who share the same tech
     
  23. Hubba Wubba Suspended

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    United States
    #24
    1. You have way too much free time on your hands.
    2. Just because you predicted a few things doesn't mean you 100% know what's going to be released before anybody else. That's like me making a list of 10 things that will be on the next iPhone, and when a few are right I think that I'm God and know exactly what Apple is going to do from then on. Get over yourself.
     
  24. vong macrumors 6502a

    vong

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    #25
    xbox 360 getting call of duty maps first stead of ps3 is one of 'em i suppose:p
     

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