Late last night, I spent 1,500 words explaining why Verizon’s Droid, like the dozens of competitors before it, is not the ever-sought-after “iPhone killer.” I really should have just waited until this morning and listened to Verizon’s earnings call. After all, Verizon CEO Ivan Seidenberg more or less said it himself.
When asked about a possible partnership with Apple in the future with the iPhone, Seidenberg had this to say, “We obviously would be interested at any point in the future that they would be interested in having us as a partner. … This is a decision that is exclusively in Apple’s court.”
Judging from the first Verizon commercial about the Droid project, it would seem that they clearly believe it is better than the iPhone. But if Verizon is so confident in this new device, why would they put themselves through the hassle of dealing with Apple to get what they view to be an inferior device?
Because they don’t actually think that.
The first sentence of Seindenberg’s remarks today reads like pandering. The second sentence sounds like Verizon’s way of telling their customers, “we’re doing all we can to get the iPhone.” The latter also confirms what everyone already knew: That Apple and Verizon are talking.
But should we believe that it’s entirely up to Apple if they wants to launch on iPhone on Verizon? Probably not. As the largest carrier in the U.S., Verizon still has some cards it can play against Apple, and you can be sure they’re doing just that. If I had to guess, I would bet that Verizon and Apple are arguing over things ranging from revenue sharing for the App Store to something silly like Verizon demanding their branding be more visible on the device.
Apple, probably not too hot on the idea of rolling out a CDMA iPhone when Verizon is working to roll out its LTE network, probably doesn’t mind stalling and sticking firm in its ground to get the same sort of deals it gets from AT&T. But Verizon, again, as the nation’s largest carrier, probably knows that without exclusivity, Apple has less of a power-play to make some of those demands.
In the coming months, Verizon will continue to play its cards by rolling out better devices on its huge and largely reliable (compared to AT&T anyway) network. They’ll launch the Droid devices, and roll out the Palm Pre. They’ll do more ad campaigns like “iDon’t” and “There’s a map for that.”
Meanwhile, Apple will either re-up its AT&T exclusivity (set to end next year) for some insane deal, possibly extending it for a year — or they’ll spread the wealth a bit more by rolling the iPhone out to that other U.S. GSM carrier, T-Mobile. Both would put more pressure on Verizon.
What we have is a stand-off. Leverage is the weapon.
But let’s be clear: Not even Verizon views Droid as an iPhone killer. And that’s because it’s not. Instead, it’s likely to be the best device running Android yet — until the next best one comes out in a few weeks or months. Android is all about being everywhere. Again, that’s why it’s a Windows Mobile and Symbian killer, not an iPhone killer. And Verizon knows it, despite their ads.
Would be nice to have Verizon service with the iPhone since AT&T is less than desirable.
How can I find an employee like that. http://www.urbanaffairz.net
Apple ran ads decrying Intel chips before using them. Not as big of a deal as you would like to make it.
Thats because a lot of things changed about Intel chips in comparison to Power PC and their future roadmap compared to Power PC.
The PowerPC chips were “better”, but they were more expensive than Intel chips and Motorola couldn’t produce them fast enough for Apple. Plus, Intel chips had the advantage of being able to support Boot Camp. Plus, if Apple adopted Intel’s chips, they’d be on Intel’s aggressive roadmap, instead of Motorola’s.
Sometimes good enough is the wiser choice.
Didn’t bootcamp only come out after their users created it for them?
The PowerPC was the first step in the right direction for processors. Processing Efficiency > Clock Speed.
The Pentium 4’s were super fast, but extremely inefficient by design, which was patched by adding “Hyperthreading”, allowing the CPU to do something else while it waited for the system to catch up.
When AMD rolled out the Athlon64, it spelled death for the PowerPC, because here is a processor that can do heavy lifting without running hot, and it was already twice the clock speed! Compared to the Pentium 4, it was running only 2/3 the clock speed and curb stomping it.
Apple isn’t too fond of names that bring thoughts of “cheap” and “value”, so they had to stick with it until Intel invented the Pentium M / Core series, which is a return to the efficient design of a Pentium 3 (a vaguely similar evolution) with the speed of an Athlon 64. Only then could Apple make the jump to a more standard hardware, as Motorola was not able to keep up with the CPU arms race.
One device can be better while you still try to get the other. I’m not going to say the Droid is better or inferior, but getting the iPhone doesn’t change that.
It just says that Verizon realizes there is a market for both phones.
There are people that will never buy a Apple computer. That doesn’t mean per se Apple makes inferior computers.
true. but it’s also very much leverage (the ads especially). it behooves verizon to have all the popular phones on its network, but it’s all about getting the right deals for verizon…
VZ is not talking to apple, Would techcrunch partner with engadget if they were attacking them?? The Iphone on T-Shit?? you kidding on what 3G
Arrington wrote in one of the comments that he saw a phone that will blow people’s socks off. I believe him – its just a matter of time till Android will be better that the iPhone on all fronts.
There is zero reason at this point to think that. It remains to be seen how well Android will do. It hasn’t exactly set the world on fire so far.
Actually MG, what’s he’s saying is:
“If Apple come up with the right deal we’ll take it otherwise sod them.”
You know, like he’s been doing for the last three years.
Like if they put a Verizon logo on it, the Verizon app store, limit what it can do to lines Verizon’s pockets. The usual. Verizon has loosened up a little because they have lost a whole lot of money form the many, many people who left Verizon because of the iPhone but never underestimate Verizon managements greed and stupidity.
Except Verizon have been steadily increasing subscriber numbers – they’re currently at 89 million.
The point is that if a customer’s not profitable then they’re not wanted. Until Apple offer a deal that meets Verizon’s profitability criteria it’s not going to happen.
If they pick up a relationship with Apple, that will certainly do a lot to make disenfranchised iPhone owners happy that they can now switch to a better network. But, the same action will have a hugely negative impact on hardware mfgs adopting Android. Jeeze, seems you just can’t win against the Borg these days.
I used to like the “I’m a Mac” commercials… but they seem overly pompous to me now. It was fine when they blasted Vista, but I actually do like Win7… and the fact that 9 out of 10 people use MS, I guess most of us are the retarded PC guy.
At least they Apple isn’t attacking Linux, yet
^ The above was typed in response to the commercial aspect (e.g. the “iDon’t” commercial).
They can’t really blast Linux since OSX is based on BSD. ‘Sides, Linux users use linux for a reason, I don’t think they’re going to be switching with a few ads.
The purpose of these ads is to make Mac OSX more relevant than what it really is in the Windows world (this is from a Mac user) and lead to articles like the one from the New York Times in which Microsoft doesn’t get any respect http://www.nyti...ess/18msft.html even with their overwhelming market share.
here here! Apple’s ads through the years have always been about belittling their competitors. I used to edit Mac spots back before Jobs got fired by Scully; It started then with 1984. I guess that Steve got picked on in high school. To me, I will always view them as an insecure bully. Of course they have no reason to be as they make beautiful hardware and their OS used to be superior, though now…. it’s fine but no better than Win7. They should grow up already. and yes, I’m a PC. I just can’t stand not being able to resize a window from any corner and I like my 2 button mouse.
MG, you know this is just standard marketing hubbub.
Verizon ha sto be competitive and Apple of all companies, understands this.
Sure Verizion will sell the iPhone the first chance it gets, who wouldn’t. But business must continue.
For instance, Apple could sell Macs with Widnows 7 pre-installed for dual-boot. But they don’t, why? Because Apple has to keep their culture seperate from Windows, even though they allow the ability to install it on their machines. Even still, Apple hammers Windows in commercial spots, but they know the key to business users buying Mac is allowing Windows compatibility.
Verizion are just doing their jobs. I will say when they start ot roll out blanket Wifi over the FCC white space (which they won in the auction), the iPhone armed with Skype or Google Voice is going to be the hottest device on the planet period.
So this is all just the last hoorah before AT&T and Verizion become the only 2 major data carriers in the U.S.
When we get blanket Wifi going, the device Apple has waiting will indeed be the ultimate winner of all smart devices.
All the CEOs of the major cell companies are treading lightly in their criticism of Apple. Remember Daniel Hesse telling Charlie Rose that the iPhone was the “Michael Jordan of cell phones.”
The guy wants it on his network. I wouldn’t be surprised if Steve Jobs gave the iPhone to everyone but Verizon. Four years ago, they went to Verizon first and Verizon turned them away. Then Verizon went to Congress and complained about the iPhone being exclusive.
Now Verizon is running this stupid Droid campaign, that only appeals to hardcore geeks, but is enough to get them on Steve Jobs’ crap list. I doubt very much if Verizon is ever going to get the iPhone now.
“why would they put themselves through the hassle of dealing with Apple to get what they view to be an inferior device?”
Come on, MG, when have you EVER seen a commercial that gave praise to a competitor?
This has nothing to do with which device is better. It has to do with which device sells better and for the CEO and the Investors, the bottom line is strictly based on the number of units sold and new accounts created.
The PR people will do whatever they need to do to draw attention and in this case have done a great job. The iDon’t campaign is great. When they have the iPhone, it will be an anti-AT&T campaign. That is just how PR works and how this business works.
Keep in mind that there is absolutely nothing wrong about that commercial either. They state exactly what the iPhone does not do and put it in a catchy way. But again, it does not matter. When Apple does allow them to sell the iPhone, they will advertise its strengths.
Nothing will kill the iPhone anytime soon because everything else is either not cool enough to compete (iDroid, HTC, etc…) or is too technical and pricey (N900) to compete on such a mass market. I don’t see the iPhone Moms buying a $649 N900 anytime soon.
poor fanboi, you’re hopeless
I disagree with this article. At some point, Apple will be hampered by AT&T to the point that they will have to join another carrier. We all know it won’t be Sprint because they aren’t jumping on the LTE bandwagon. And T-Mobile is too small to really handle the amount of traffic that the iPhone generates. Plus, Verizon has the best network around.
It’s not that Verizon is going to succumb to Apple just to get the iPhone. Verizon isn’t hemorrhaging customers left and right like other carriers. But Verizon’s trump card is the fact that it’s LTE network will be launching next year and will be a few years away from full maturity. And with it brings crazy fast broadband speeds. Apple would definitely want all over that.
And as a brand, the carrier which Apple is currently on is suffering from a lot of setbacks. The Apple-AT&T marriage is one only of convenience, and not of love. The MMS/tethering fiasco further proves that AT&T’s network isn’t up to snuff (and that is downright disturbing that MMS didn’t come sooner).
droid has a physical keyboard….anything claiming to be an iphone killer needs to get rid of the physical keyboard
Hence, the Droid Passion, and the Droid Desire. I am a Verizon customer and would be the first one to yell at their previous dumb mistakes. I have to say though, I think they are getting it right though the good thing about this new advertising campaign is that it says what Droid does, but it does not tie droid to one phone, but many. Verizon has managed to make droid a sub-division which means it doesn’t have to pit one phone against the Iphone. You don’t want a keyboard, well Droid Does(passion/desire) want a keyboard Droid Does(moto droid/calgary) they are smart.
I have to take the other side of that argument. I know plenty of people (iPhone users and other) that want a physical keyboard. Additionally, full support of Adobe Flash in Android will cause churn in the iPhone userbase.
Regardless, the idea is not to defeat a phone, it’s to provide a solution that meets the needs of the largest group of people possible. Forget about the phone wars, this is a mobile internet story. Everyone involved wins (rising tide lifts all boats).
All stupid Apple and iPhone fanboi are retarded. Droid is 1,000 better than the iPhone. And windows 7 rules.
Now that’s what I call a cogent argument
well it is direct and to the pont. very efficient. I concur. I can’t wait to dump my iphoney.
Of course, they don’t not want it. They would be stupid to not have the iPhone especially since so many people are still with AT&T only because of it. The Verizon network can handle it fine. Also, didn’t I read somewhere that they are testing a 4G iPhone on their 4G network?
Why does the iPhone have to be “better” for Verizon to want it?
The words you’re looking for are “popular” and “profitable”. Being the best has never been a surefire way to make money in the past, it’s all about marketing and trends. Apple have the app store, they have a huge user base and they have a phone that no one can say a bad thing about, why wouldn’t a carrier try get their hands on that?
You are right MG, its all about where the money comes in and i believe if he talks about partnerships with apple, then Verizon can make make millions such a AT&T is making now
I am now watching the driod does videos again lol here
http://thetechn...-at-the-iphone/
Woah.. just because the Verizon suits understand the importance of the iPhone in today’s market does not mean they do not believe they have a superior (technological) phone in their hands. It’s all about marketing, iPhone already has it’s fan base and it’s app store, and that’s what’s going to keep it running, it has nothing to do with which phone is better than the next.
Hit the nail right on the head. The author’s logic used in arriving at the conclusion that “Verizon’s interest in the iPhone is an admission that the Droid is an inferior product” is entirely flawed. From a business perspective, why would Verizon NOT want the most popular smart phone in the market (by FAR) in its portfolio of phones? In no way does this suggest that they believe the iPhone is superior–they’re simply acknowledging the fact that tons of people own an iPhone and tons of people WANT to own an iPhone. While I am skeptical as to whether or not the Droid will truly be an “iPhone Killer,” I couldn’t disagree more with the manner in which the author arrives at his conclusion.
When reading MGS’s posts, there’s facts and then there’s analysis all mashed together. Usually if you separate the two and analyze the facts, you might reach a different conclusion. However, the value is in the facts and he produces them every once in a while.
I don’t think MG can ever be accused of using logic to arrive at his conclusions.
Siegler, you are such an Apple fan boy. You will take any bit of news and spin it favorably to Apple. When Seidenberg said the ball is in Apple’s court, most people would assume that means Verizon has dictated their terms and Apple is refusing to accept. Only you would translate that statement to mean Verizon think all of their phones are crap and is ready to take it in the ass in order to get hold of the glorious iPhone.
Why doesn’t Apple just buy Sprint and double-dip on the hardware and the network?
Because Sprint sucks. Verizon is the dominant force and doesn’t need, but would like, the iPhone available to it’s subscribers. Bottom line, it’s Verizon’s subscribers, not Apple’s.
What is an iPhone killer? A phone that will get all iPhone users to leave Apple and switch to a new device? Or just a phone that is technologically equal or better to the iPhone?
No such thing as an iPhone Killer.
But their are now some Droid Winners.
“The second sentence sounds like Verizon’s way of telling their customers, “we’re doing all we can to get the iPhone.”
October 29, 2009: The day that MG finally lost the plot.
I think people should stop speculating about the iPhone and carriers. It’s making it seem bigger than it actually is. There are lots of other phones that are as good if not better. I’d rather focus on the future rather than 2007’s technology wonder.
“Verizon: iDon’t Not Want The iPhone”
so they do want it? (double negative)
Of course they want the iphone….because every idiot out there thinks its the greatest thing ever.
MG, will you stop defending Apple and bashing their competitors everyday? Really, we all know what the point of your article will be before we read it, so why bother? We know you are an Apple lapdog; trust me, everyone knows. So why don’t you give it a rest, and use your TechCrunch stump to talk about something else?
rofl Verizon dosn’t care about the ipone what it wants is all the yuppies and hipsters that throw there money down the drain for inferior service just so they can have a apple product rofl. to be a true ipone killer u have to get that crowd and google is one of the few names that has the the juice.
As a Verizon customer I wish I could have an iPhone but I am unwilling to sacrifice my coverage to do so. I am also not a fan of Apple’s heavy handed control of their products. But I do understand that its this control that makes them work so well…
rubiconn.com
I can only hope Verizon gets the iPhone. I love the quality of service. I get clear phone calls when most of my friends have no bars.
I have no desire to switch networks, but would love to trade in my blackberry for a iphone.
In last 20 days I owned a Verizon MiFi(used it with iTouch) then got rid of it to get a HTC Hero from Sprint, which I got rid of that too! FInally i went to the darkside and now am a happy iPhone owner; no issue with network in Baltimore and Google Voice via the web works (phone/SMS) fine!
Though I’m seeing Internet/Media Net notifications under my pay per data on my AT&T bill. WTF is that – no one I talked to at AT&T knows or makes any sense to why that charge appears. I’m receiving all my SMS(s) through Gmail & responding there; turned off send SMS to phone. Maybe someone else is seeing this confusing charge (possible charge). Random I know but do wonder….
I think rule #1 in technology development is that the better product doesn’t always win. BetaMax vs. VHS is the classic example everyone loves to use. Verizon can try and move on to the better product, but they would be nuts not to try and make a deal with the product that already has the fanbase.
I don’t think the Droid name is very good and it will turn off people from buying it!
droid name SUCKS… I mean reeeeeeallly sucks. Android is way better.. but well… just stupid.. bet they never did any studies or focus group on that.. the dude who came up with it should get his ass fired.
Did your poor feelings get hurt by the verizon adsi/map ads? Poor fella. This post sure showed them though!
Back in reality – Verizon never said that they had an iPhone killer – the only people dumb enough to use that term are hopeless columnist like yourself and Mcnamee. They aren’t saying anything really different than they have been – of course they’d take the iPhone if the deal was right.
The thing is – until now they haven’t had anything that even competed with iPhone let alone threaten its life! So yeah, the iPhone is always going to have the soccer moms – most of them don’t even realize what their phone can’t do. But Verizon appears ready to give the world a phone that isn’t hobbled beyond all recognition – finally – and there is a geek squad contingent of users who would like a powerful phone on a network that isn’t craptastic – these ads are aimed at them.
Geeks are a minority. Verizon has to market to the “soccer mom” crowd to make any substantial gains in moving mind share away from the iPhone.
And just because I don’t want to waste time micro-managing my gadgets does not make me a “dumb” user. I don’t care who you are… Cryptic settings and complex user interfaces is not an ideal experience.
I believe I read a while back where VZW’s CTO said that even after LTE launches they will continue to use CDMA to carry voice traffic for several years beyond the initial launch of LTE.
With that said, anyone who has speculated about Apple waiting on VZW’s LTE network may be missing a key point. Any voice device that is launched on VZW for at least the next 2 years will likely have to have CDMA – or be VOIP based. I doubt VZW would launch a device that relied on VOIP as this has never been mentioned as a technology path by them.
Even if they rolled out a CDMA iPhone this summer, Apple could still roll out a new and improved LTE version in 2011 when both ATT and VZW would be deeper into their LTE rollouts.
IMHO.
What about everything iDo?
I remember when EVERYTHING APPLE was a exclusive/closed community. Now all the newbies have taken over.
JG – you are correct about CDMA. They will also need it for coverage (as well as voice) for several years.
Google is the biggest proponent for AT&T – Apple to re-up….Apple – AT&T is just fueling Android on everything else – phones and networks…
The iDon’t commercials don’t make sense– not unless you are already clued in. In fact, they sound as if someone is attacking and discrediting the Droid, listing all the things it can’t do (I don’t do x, I don’t do y).
The name of the phone is a turn-off, too. “Droid” sounds off-putting, like a metallic, dumb, mindless robot–as in the way it’s used to put someone down. Don’t be a droid!
I’m in the camp that thinks they may have ticked Jobs and Apple off–or is Steve waiting to get the last laugh when the Droid has some fatal flaws, viruses, security lapses, slow response time, etc.?
If the iPhone was available on Verizon, then myself and most people I know would have an iPhone. Verizon’s service is much better than AT&T.
Is it
“There is an app for that”
or
“There is a map for that”
CONFUSING!!!!!
LOL
When I selected my smartphone, I had a choice between getting Blackberry, Palm, Windows, or an iPhone.
I got a Saga.
Why?
On Windows phones, you can download or upload anything you want.
You can install anything you want, as long as it is Windows Mobile compatible.
The phone’s browsers have Flash Player support, and the OS is fully multitasking.
Oh yeah, it syncs flawlessly with Windows.
Call me a Microsoft fanboy and moan about it like a 4chan zombie who puts 1’s in with their !’s, but my phone does things the others combined don’t. Even though it is not the best Windows phone out there.
I have been a 10+ year Verizon customer and at the end of this year my signed-in-blood 2yr contract will be up. If Verizon doen’t get the iPhone I am moving to AT&T because I am a mac user and they just get how technology should function. If you have a great device that can do it all why settle for something else.
[quote]Judging from the first Verizon commercial about the Droid project, it would seem that they clearly believe it is better than the iPhone. But if Verizon is so confident in this new device, why would they put themselves through the hassle of dealing with Apple to get what they view to be an inferior device?
Because they don’t actually think that.[/quote]
This is absolutely an absurd statement. Let me give you an example:
Betamax was FAR superior to VHS. The picture quality was better, the sound quality was better, it was a better medium. More people bought VHS becuase of the price. More VHS players meant more movies in VHS format, meant the end of Beta, and NOT becuase it was inferior.
I’m not going to say that the Droid will “kill” the iPhone, I’m not even saying the Droid is better (I honestly don’t know, but I do like the multi-tasking and removeable media available on the Droid), but let’s use a little common sense in our statements.