Verizon iPhone 5: How The Release Threatens AT&T

Previously we have reported on the Verizon iPhone and how it could possibly be an initial positive for AT&T as they will get a lot of cancellation charges when people switch from their network. Now we are going to look at the other side of the coin and see how it threatens AT&T.

There have been recent claims that Apple will host one of its product revelation announcements on Valentines Day. The way things stand currently, AT&T have exclusive rights over the iPhone. This means that the current most popular cell phone on the market is on what has been described in the past as the worst wireless carrier for customer satisfaction. Verizon on the other hand have a pretty good reputation coupled with a reliable service. It makes sense for the iPhone and Verizon to go hand in hand doesn’t it?

Verizon have already ruled the Verizon iPhone from the CES 2011 event, they are staging this as an Android only event, but they will perhaps unfairly be asked continually about the imminent Verizon iPhone release. Another theory was that Apple would show up displaying a CDMA enabled iPhone, although we are yet to hear any further developments there. It’s pretty clear that we looking at the device making its way onto the scene at some point after CES 2011, but currently nobody can give a concrete answer of when.

According to Bloomberg Businessweek’s Peter Burrows, AT&T stands to lose around $6 billion annual revenue, in total that is around 10% of their projected figures for 2011. A clever move on AT&T’s part was to put people who wanted the iPhone 4 onto a 2 year contract, which would span over to the time that AT&T will be sharing the iPhone with another carrier. With that in mind they have upped the early cancellation fees from $175 to £325, a bit cheeky but it will make anybody on their 2 year deal think twice about leaving straight away.

For further information on this, with all the supporting figures, head over to Peter Burrows’ article by clicking here. Could this be the last iPhone in Apple’s range? Some sources seem to be thinking it will be.

What are your theories on the Verizon iPhone? Will you be switching from AT&T when the iPhone is available on Verizon? Let us know your thoughts in the comments below.

  • duane

    This is my prediction.. The iphone will be released early this year. In June Apple will probably release an updated LTE model. This is very probably since it will increase the units Apple will sell, as most people will upgrade to this phone.. I must say after first giving up my iphone for verizon black berry last year i dont know if i would have the ability to wait for this summer to see if there will be an LTE phone or just say screw it and buy the first available…

  • Chris

    I am currently a Droid 2 user with Verizon…I’ve been hoping for an iPhone for the Verizon network just as long as anybody…I had Att before I locked in with Verizon back in 2007 and I an one to admit That Att isn’t a good nor reliable carrier…so I am excited and yet glad That Verizon is getting the iPhone…I’ve enjoyed and had little problem with my Droid but once the iPhone is released I will be probably one of the first people to get one.

  • NOBAMA

    I love my iphone, I hate AT&T and will go to court with them over the cancellation fee. I have reported to them each time they have not lived up to their end of the bargain concerning the contract that we have together. They can kiss my a**