Motorola might be doing well in today's mobile market, but the company could be facing several problems if Apple brings its iPhone to Verizon's network in the coming months.
The
talk
over Apple's iPhone coming to Verizon's network won't go away. More and
more reports are piling up, claiming that the device will be landing on Verizon's
network in January. If and when that happens, the market will be a much
different place. Millions more customers will have a chance to get their hands
on Apple's smartphone. And all the devices that currently enjoy success on
Verizon's network could be in trouble.
One of those devices is Motorola's Droid X. Widely regarded as
the best alternative to Apple's iPhone, the Droid X boasts a big, 4.3-inch
display, a 1GHz processor and some of the best entertainment functions of any
smartphone on the market. It's supported by the Droid 2, another fine iPhone
alternative to Motorola. For now, both devices are enjoying relative success.
But Motorola's success in the mobile market could be
short-lived when Apple's iPhone arrives on Verizon's service. The carrier will
focus its efforts on Apple, the market will buy into the hype, and all the
while, the Droid X and Droid 2 could flounder on store shelves. Simply put, a
Verizon iPhone would be bad news for Motorola. Here's why:
1. Verizon would go elsewhere
If the iPhone comes to Verizon's network, expect the carrier
to
focus all of its efforts on Apple. Whereas Verizon currently helps to
promote and support Motorola's smartphones, an iPhone running on its network
would change all that. To some extent, the change makes sense. Apple's iPhone
would be the biggest release on Verizon's network in years. And it would
undoubtedly take the sales lead. Why wouldn't Verizon want to work hard to make
the iPhone an unbridled success?
2. The hype would be overwhelming
Considering Verizon customers have been waiting for an iPhone
for four generations now, the hype surrounding the device would undoubtedly
drive unprecedented demand for the smartphone. That, in turn, could
significantly hurt demand for Motorola's smartphones. All the customers who might
have purchased a Droid X would turn to Apple's smartphone instead. The hype
following the Verizon iPhone's announcement could single-handedly take out
Motorola's smartphone efforts.
3. It's heavily invested in Verizon
Motorola has become heavily invested in Verizon.
Because
AT&T has the exclusive rights to the iPhone, Verizon needed to find a
viable alternative for its customers. It did so with the Droid and the Droid X.
And so far, Motorola has reaped the rewards of that. But by putting so many of
its eggs in Verizon's basket, it's leaving itself wide open for problems when
the iPhone comes to the new carrier. That's not a good thing.
4. Apple would make the Droid X look bad
Make no mistake that Apple has the unique ability to make the
competition look bad. When the iPhone was first launched, AT&T displayed it
prominently in stores. Consumers were then able to compare, say, a BlackBerry's
functionality with the iPhone's. Upon doing so, they fell in love with Apple's
smartphone. The same will undoubtedly happen at Verizon stores. When consumers
need to renew their contracts and compare a Droid X to an iPhone, they will
pick the latter every time. The Droid X is great, but it's not an iPhone.
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