Verizon Cant Win with Just BlackBerry, Android Phones

By Don Reisinger  |  Posted 2010-09-23 Print this article Print

5. Google's power consideration 

As with other carriers, Verizon should be concerned about Google's growth in the mobile market. With a dominating operating system, the search giant could wield an unprecedented amount of influence in the space, which might eventually affect Verizon's business negatively. For now, Verizon needs Google as a technology and market ally. But if Google becomes too big in the mobile market, due in large part to Verizon's reliance on it, the carrier might be wishing for the iPhone more than ever before. 

6. RIM won't cut it 

Research In Motion is currently an influential and important mobile company, and it's helping Verizon generate significant revenue. But its influence is being diminished at the hands of Android OS and the iPhone. Should Verizon be forced to compete with BlackBerry and Android devices against AT&T-which has the iPhone as well as Android OS devices-it's hard to see how it will stay atop the mobile space for much longer. RIM just isn't enough to help Verizon in an iPhone-less world. 

7. Apple keeps innovating 

If Verizon doesn't get the iPhone in 2011, expect Apple to keep innovating, regardless of which carrier runs its device. And as those innovations continue, more and more consumers will want to get their hands on Apple's smartphone. Meanwhile, Verizon's value proposition will diminish. In fact, the company might have an extremely difficult time selling consumers on its service over AT&T's, which will undoubtedly continue to offer the iPhone. Simply put: Verizon needs to capitalize on Apple's new designs-it's imperative for its future success. 

8. It makes future announcements suspect 

The issue with all the news that has broken lately about Verizon getting the iPhone is that, if it doesn't, future announcements from the carrier will be suspect. And consumers likely won't believe that Verizon will actually get the device until it's available in company stores. Consumers don't like being told that something they've expected won't happen. Should those promises be made once again, well, "fool me once, shame on you . . . ," etc. 

9. The financial impact could be huge

Verizon, naturally, wants to generate more money every year. If the iPhone hits its store shelves in 2011, the carrier can almost be assured profits will rise. But if it doesn't, the financial impact on the firm could be disastrous. Verizon will probably lose subscribers, resulting in a calamitous revenue decline. Plus, investors might opt for other stocks over Verizon's because the company wasn't able to ink a deal with Apple. Financially, an iPhone-less Verizon would be a very wrong number. 

10. Another competitor could step in 

In the end, it's entirely possible that Apple could offer its smartphone to an AT&T competitor that's not Verizon. In fact, T-Mobile might be one of the first companies Apple works with. T-Mobile is currently an iPhone partner in other countries, so why wouldn't Apple consider tapping it to be its U.S. iPhone carrier of choice? Verizon might seem like the obvious choice, but the company could, in the end, lose out to competitors. And that certainly wouldn't be good for business.

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Since then, he has written extremely popular columns for, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at

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