Thursday, January 13, 2011

Will Verizon iPhone Hurt Android Sales?

Will the launch of the Verizon iPhone 4 slow Android's growth? Some will say yes, others no.

Charlie Wolf of Needham and Co., and Shaw Wu of Kaufman Bros. both believe Apple's deal with Verizon will hit Android sales. The notion is that Android phones will suffer because Verizon users bought Androids in the past primarily or largely because the iPhone wasn't available on Verizon. Once it is, they will switch when they can.

The alternate view rests much more on the range of price points Android devices will be available in, at least on a global level. So the answer might well be "both of the above." It is conceivable Verizon will see at least a momentary dip in Android sales as iPhone sales begin. But on a global basis, the Apple deal with Verizon does not affect the overall dynamics of competition between Android and iPhone.

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