ITC Analyst: Why Verizon Needs The iPhone To Stay On Top

Posted Dec 13, 2010

Aymco, a market intelligence company, compiled data gathered from ITG Investment Research analyst Matthew Goodman. The data is ?based largely on our proprietary daily point-of-sale data from thousands of independent wireless retailers across the US,? said Goodman.

Based on the information at hand, it appears that the iPhone stole a lot of Verizon’s growth. Another conclusion is that Verizon is facing the prospect of a single OS platform supplier (notice growth of Android and WM). The Android is not competitive against iOS devices either. This could end up costing Verizon from no longer being the #1 telecommunications company.

Verizon volumes had grown from 2.7 million in Q1 of this year to 3.3 million in Q3. During the same time period, the iPhone at AT&T went from 2.7 million to 5.7 million. These numbers are staggering. Verizon’s customer base is about 92.1 million and AT&T now has 90.1 million. RIM’s growth hit a downward trend in August 2010 around the same time the iPhone 4 was released.

Horace Dediu, the author of the Asymco report also implied that the ITG data may not paint an entirely accurate picture as he pointed out by saying “assuming the data is accurate.” ITG is not working with any insider data whatsoever. Whenever Verizon gets the iPhone, Dediu believes that at least 8 million iPhone sales will be made on their network within a year.