Verizon Could Face Up to $14 Billion in Unsold iPhone Purchase Commitments for 2013

[Tiger8]

Exactly, if they put their unlimited plan back, I will be back in a heart beat...I have 3 teenagers on my family plan, I cannot afford for them to go over and pay the penalty

I use Net10 (an MVNO carrier). One thing I love about my plan with them is the fact that I get 1.5 GB of data, and once it's done it's done until the next month. I feel if the big carriers offer you this option (i.e. stop data usage after threshold is reached) then it will make a lot of families with teenagers happy. But they don't, in fact, they are banking on your teenager exceeding their limit

 

[appleisking]

I wonder why that is?

Could it be that people actually WANT something other than the iPhone? No, that couldn't be it! It must be all those Verizon reps that push non-iPhones to the gullible customers! Yeah, that's it!

You guys are like a broken record. Yes, I have the iPhone 5 (on AT&T) and I do like it very much, but you all that stick your heads in the sand and pretend Apple hasn't fallen behind are deluding yourselves. If Apple, and in turn Verizon, want to turn numbers like this around, they've got to realize that one phone model per calendar year isn't going to cut it. Apple has to get serious once again and start bringing innovation (there's that word again) back to the table.

Whether you or Apple want to admit it, consumers WANT bigger screens (and not the pathetic 4" screen the iPhone 5 brought to market that was so revolutionary ). They want more freedom to make their phones THEIRS (and not just by changing the wallpaper behind a grid of icons).

Say what you want, but I firmly believe if Apple brings the 5S out come September...and it's just a rehash of the 5 with a few new "revolutionary" bells and whistles (that Android phones have had for a couple of years now), you're going to start to see the slide quicken. They have to wake up and realize the Jobs Model doesn't work anymore. Google/Android and the OEMs that use it have brought their full weight to bare on Apple and have changed the way the industry (and consumers) work and what they want. Apple had better realize this soon, because folks, Steve Jobs ain't walking through that door to save Apple again.

You have people specifically wanting an iphone walking in and then being turned towards other phones not because they are better but simply because verizon makes more money off of them. Notice how we're just talking about verizon here. The other carriers don't seem to be having these issues.

 

[hudson1]

As a company, if your product can't sell in my store, I shouldn't be held liable. Now if I'm purposely not selling or prohibiting sales of it, then I have no case.

It seems what Verizon is doing is preventing sales of the iPhone, so Apple should push to get the money.

However, I feel Verizon may just drop the iPhone completely. Heck, I'd even disable any off-contract iPhones on the network too. Yeah it may piss off customers, but it'll make Apple give in too.

Verizon Wireless can't give up the iPhone at this point. Mobile service is more of a commodity than even a phone so customers are more likely to switch carriers than handsets.

 

[lolkthxbai]

Not surprised. I see more ads for iPhone on AT&T, Sprint and T-mobile than Verizon. Plus, that NSA scandal with Verizon doesn't make the carrier look any more attractive.

 

[TWSS37]

Verizon should just change the pay out structure to stop the sales people from streering customers to phone that pay a higher commision(at least in the short term).

iPhone sales are easy to make since most people coming in know exactly what they want.

Yet according to multiple posts, the "people coming in know[ing] exactly what they want" walk out with something else?

If you walked in to a car dealership and wanted a truck, would you be able to be coerced into a subcompact?

 

[cdmoore74]

And the geniuses keep training to push their employees to sell non iPhones....

Or maybe the iPhone 5 is not good enough over the competition. Got to stop living in a Apple only universe. And good luck to a iPhone 5s; Apple will need it.

 

[skratch77]

The biggest carrier in Russia just took iphones off there network because apple wanted them to sign a similar contract with them.

 

[Big-TDI-Guy]

According to Wikipedia, the total cost of the Apollo program - in today's dollars, comes out to 18 Billion per moon landing.

Verizon eating 14 Billion in unsold iPhones.... and Nixon thought the Apollo program was a waste of money...

 

[Thunderhawks]

I use Net10 (an MVNO carrier). One thing I love about my plan with them is the fact that I get 1.5 GB of data, and once it's done it's done until the next month. I feel if the big carriers offer you this option (i.e. stop data usage after threshold is reached) then it will make a lot of families with teenagers happy. But they don't, in fact, they are banking on your teenager exceeding their limit

Clearly the best solution to a common problem, but until a regulation body steps in it won't happen!

 

[Popeye206]

Ahhh... who cares? Apple won't make Verizon pay... they won't want to alienate one of their larger channel partners, and Verzion I'm sure will step up pushing the iPhone. It's that simple.

 

[appleisking]

"Too good" for the original? The fact of the matter is that AT&T was willing to be much more flexible with their terms due to their fledgling state that VZW didn't need the iPhone. I'd be willing to bet that VZW would be just fine without the iPhone even today.

Why can't we all just accept that there are *GASP* phones that ARE, in fact, superior to the iPhone and not all people who don't buy iPhones are some slobbering idiots who obviously must have been coerced into getting something else?

Verizon wouldn't be just fine without the iphone. More iphones have been sold than any other phones in the U.S. They'd be losing out on a lot of cash, that's why they joined in the first place. Now due to their practices, they are having serious inventory problems that other carriers are not. Coincidence? Why can't you accept that because verizon makes more money off of other phones it would be more advantageous for them to push them over the iphone?

 

[TWSS37]

Not when you have ten other posts confirming the same thing: verizon reps are specifically chasing customers away from the iphone for commission purposes.

If customers are so easily swayed, then did they REALLY want an iPhone?

I'm not saying that there isn't motivation for selling one product over another based on spiff. I've worked on commission before; this is common.

But if a person came in and said "I want this", it would be my job to listen to why they wanted and since product knowledge of ALL lines was necessary, say, "OK, based on that, this might be a better option." If a customer still said, "no, I want this," I would ring them up and send them on their way. I can't tell you how many times a customer "wanted" a certain product only because they didn't realize an alternative was available.

 

[dragje]

ahm because there are no superior phones ? If you look at the overall image ?
-> Security : iPhone
-> Color reproduction : iPhone
-> ease of use : iPhone
-> build quality : iPhone, HTC One
-> ScreenSize : depends on usage, i like smaller not bigger (i am a one handed user)
-> apps : iPhone

That's Apple fanboy talk i.m.h.o.

-> Security : highly depends on it's user

-> Color reproduction : That's in the eye of the beholder, or: "The ideal option for you may come down to what you use your phone for most. If you like to watch movies and play games on your phone, AMOLED might be the better choice, thanks to its hugely superior contrast ratio compared to LCD.
However, if web browsing and document viewing is more your thing, LCD usually offers slightly crisper text, making it easier to read what's on screen over long periods. In either case, you're unlikely to be disappointed with the best of what manufacturers offer."

source: http://www.techradar.com/news/phone...st-phone-screen-display-tech-explained-951855


-> ease of use : That's in eye of the beholder

-> build quality : According to most magazine's Sony Xperia Z (best hardware)

-> ScreenSize : depends on usage, i like smaller not bigger (i am a one handed user) <- I agree, same here

-> apps : iPhone <- that's true, but competitors gaining ground fast and true is also that 80% of the apps are crap (just as with the other smartphones)

 

[appleisking]

Or maybe the iPhone 5 is not good enough over the competition. Got to stop living in a Apple only universe. And good luck to a iPhone 5s; Apple will need it.

in the U.S, iphones still have the largest market share. Notice also how the report is coming only from verizon. They can't be having that much trouble selling the iphone that they have that many left over.

 

[iSee]

A $14 Billion shortfall seems wildly unlikely.
At the current rate of sales of 2.5 Billion per quarter, the shortfall would be $13.5 Billion. And, of course, when the next iPhone comes out, it is going to sell many times faster than that.

I guess there could still be a shortfall, especially depending on when the new iPhone comes out and how well recieved it is. But even if it's only available in the last quarter and sells moderately well, say, 4x the 1st quarter -- that's not such a big difference considering normal seasonal differences between the pre-Chirstmas quarter vs. the post-Christmas quarter. Then the shortfall would be around $6 Billion.

But, hey, I'm not a profesisonal analyst, so what do I know?

MR should post an update once Version 2013 sales estimate are available so we can see how well the analyst did.

 

[KdParker]

I wonder why that is?

Could it be that people actually WANT something other than the iPhone? No, that couldn't be it! It must be all those Verizon reps that push non-iPhones to the gullible customers! Yeah, that's it!

You guys are like a broken record. Yes, I have the iPhone 5 (on AT&T) and I do like it very much, but you all that stick your heads in the sand and pretend Apple hasn't fallen behind are deluding yourselves. If Apple, and in turn Verizon, want to turn numbers like this around, they've got to realize that one phone model per calendar year isn't going to cut it. Apple has to get serious once again and start bringing innovation (there's that word again) back to the table.

Whether you or Apple want to admit it, consumers WANT bigger screens (and not the pathetic 4" screen the iPhone 5 brought to market that was so revolutionary ). They want more freedom to make their phones THEIRS (and not just by changing the wallpaper behind a grid of icons).

Say what you want, but I firmly believe if Apple brings the 5S out come September...and it's just a rehash of the 5 with a few new "revolutionary" bells and whistles (that Android phones have had for a couple of years now), you're going to start to see the slide quicken. They have to wake up and realize the Jobs Model doesn't work anymore. Google/Android and the OEMs that use it have brought their full weight to bare on Apple and have changed the way the industry (and consumers) work and what they want. Apple had better realize this soon, because folks, Steve Jobs ain't walking through that door to save Apple again.

You obviously haven't tried to buy and iPhone in a Verizon store. They do push other phones for the commissions.

 

[KentuckyHouse]

You have people specifically wanting an iphone walking in and then being turned towards other phones not because they are better but simply because verizon makes more money off of them. Notice how we're just talking about verizon here. The other carriers don't seem to be having these issues.

I get that. But I blame the consumers that don't stick to their guns. It's YOUR money...you're the one that has to use the phone for the next 24 months. Get what you want. In that case, you are being weak-minded if you let the reps talk you in to something else. Like with any big purchase, do your research ahead of time and you'll end up with the phone you want.

 

[newdeal]

If Apple didn't share their hardware roadmap with Verizon I will bet if this happens Verizon will lawyer up and try to get out of it stating that Apples hardware wasn't competitive in the marketplace which forced slower than anticipated sales

 

[appleisking]

If customers are so easily swayed, then did they REALLY want an iPhone?

I'm not saying that there isn't motivation for selling one product over another based on spiff. I've worked on commission before; this is common.

But if a person came in and said "I want this", it would be my job to listen to why they wanted and since product knowledge of ALL lines was necessary, say, "OK, based on that, this might be a better option." If a customer still said, "no, I want this," I would ring them up and send them on their way. I can't tell you how many times a customer "wanted" a certain product only because they didn't realize an alternative was available.

I agree a lot of people just hop on the iphone bandwagon and are ignorant to most of the other competition. But if iPhone profited verizon more, then they'd heavily push the iphone over everyone else even if there are better phones.

 

[Elvergun]

Yet according to multiple posts, the "people coming in know[ing] exactly what they want" walk out with something else?

If you walked in to a car dealership and wanted a truck, would you be able to be coerced into a subcompact?

It depends.

My girlfriend's father (not a techie guy) went into a Verizon store to purchase and iPhone5 based on our recommendation...and they switched him to a 4S (I'm surprised he did not walk out with an Android).

He would have been happy with the 4s, not knowing about LTE or the faster processor or the better camera.

We sent him back in the next day and now he is extremely happy with his 5.

Not everyone is knowledgeable about the latest tech...and not many spend their time on Apple and\or Android forums.

 

[KentuckyHouse]

You obviously haven't tried to buy and iPhone in a Verizon store. They do push other phones for the commissions.

You're right. Because I wouldn't ever USE Verizon and their overpriced contracts. And you guys are starting a circle jerk here...one person mentions that a rep pushed another phone on them besides the iPhone and suddenly there are people coming out of the woodwork saying "Yeah! That's why this is happening!"

You ever stop to think Verizon KNOWS that have this gigantic screw up of a contract with Apple? They KNOW they need to sell X number of iPhones and they know when they're not doing it. Why would they intentionally tank their own company?

 

[\-V-/]

This doesn't come at a surprise to me at all and from what I've heard they kind of deserve it. A buddy of mine works at Verizon and said management purposely tries to sell customers anything BUT iPhones, even if they persistently ask about it. I get that they're trying to sell other phones for commission, but when you're under a contract like this one, it seems rather stupid to sell less iPhones.

 

[TWSS37]

Verizon wouldn't be just fine without the iphone. More iphones have been sold than any other phones in the U.S. They'd be losing out on a lot of cash, that's why they joined in the first place. Now due to their practices, they are having serious inventory problems that other carriers are not. Coincidence? Why can't you accept that because verizon makes more money off of other phones it would be more advantageous for them to push them over the iphone?

I'm not getting into the iPhone sold more/less than something else (phone, company, OS) because you can make the data say anything you want.

And again, I am not saying that salespeople aren't pushing people towards something else, but the common theme here is "oh my friend went in wanting and iPhone and walked out with [something else]." My point is, and always has been, if the customer TRULY wanted an iPhone, they would have an iPhone.

 

[Bahroo]

Now all the people who were on strike and bitching and moaning about Verizon got karma back... Ok guys now you can go home seriously lol

 

[appleisking]

I get that. But I blame the consumers that don't stick to their guns. It's YOUR money...you're the one that has to use the phone for the next 24 months. Get what you want. In that case, you are being weak-minded if you let the reps talk you in to something else. Like with any big purchase, do your research ahead of time and you'll end up with the phone you want.

See that's the thing. Most people don't do research on what's the best. They go with what all their friends have and what's the most popular or trendy. Maybe it is better that verizon is at least pushing the competition but note that they only do so for monetary reasons they don't care which phone is better.