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 . . .
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.