Verizon Takes a Bite Out of Apple

By Varney and Co

The day that Verizon consumers have been waiting for is finally here! The largest U.S. wireless carrier is adding the iPhone 4 to its inventory, bringing an end to Apple’s exclusive agreement with Verizon rival AT&T. But analysts question, will Verizon’s network be able to handle the new demand? Will Stofega, Program Director of Mobile Device Technology at IDC, joined Varney & Co. this morning to discuss Apple and Verizon’s announcement.

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“Verizon certainly thinks they are going to be able to handle it,” said Stofega. “I think a lot of it will be up to how well they are able to take on new subscribers, and we think it will be a flood of new subscribers.”

Today’s announcement provides a major boost for Apple and it’s Smartphone business, which has been facing stiff competition from phones powered by rival, Google. Verizon currently has 92.3 million subscribers, and analysts predict that the carrier could bring Apple millions of iPhone users.

“We are thinking roughly between eight and ten million subscribers over the next year,” said Stofega. “This is going to help Apple increase their marketshare and maybe hold back the flood of Android devices in the marketplace.”

The iPhone will be available on February 3rd to existing Verizon Wireless customers. One week later, February 10th, the iPhone will be available to everyone at Verizon Wireless online, Verizon Wireless stores, Apple stores and Apple online.

“There’s been a lot of time for preparation,” said Stofega. “There’s been a lot of time to understand the data loads on the network and hopefully Verizon will walk away with some satisfied customers.”