Tuesday, January 11, 2011

Apple is the Big Winner: iPhone Shipments Will Grow 25%

The Verizon Wireless announcement that it will offer the iPhone to its subscribers will accelerate worldwide shipments of the code division multiple access (CDMA) version of Apple Inc.’s smart phone, helping boost sales of the device by about 25 percent this year, according to new IHS iSuppli research.

IHS iSuppli forecasts Apple will ship 12.1 million CDMA iPhones through Verizon and other global CDMA wireless carriers in 2011. This will increase global iPhone shipments to 61.2 million units for the year, up 24.5 percent from the 49.1 million high-speed downlink packet access (HSPDA) and high-speed uplink packet access (HSUPA) phones offered by AT&T in the United States and other carriers worldwide.

The CDMA model will play a critical role in sustaining the growth of iPhone shipments this year, with total iPhone shipments expected to rise by 33.3 percent for 2011. Excluding CDMA, shipments would climb by only seven percent.

Verizon Launches iPhone: Video

"Speed" Not an Issue for Verizon Wireless iPhone

Verizon turns your iPhone into a WiFi hotspot

Verizon says users will be able to turn their phones into five-person hot spots, though pricing does not yet seem to be available.

The feature turns the IPhone into a MiFi device. Depending on how the feature is priced, at least some users might find that that hotspot feature becomes the most-used feature of the device.

Comparing AT&T iPhone and Verizon Wireless iPhone

AT&T
Verizon

Price (on contract)$199 16GB, $299 32GB$199 16GB, $299 32GB
Data plan1$15 / 200MB

$25 / 2GB

$45 / 2GB with tethering
$15 / 150MB?

$29.99 / unlimited?

$49.99 / unlimited with 2GB tethering?
Early upgrades available at launchYesNo
Global roaming capabilityYesNo
Simultaneous voice / data on 3GYesNo
WiFi mobile hotspot optionNoYes
4G data (HSPA+ / LTE)NoNo
Rated talk time2G voice:
14 hours

3G voice: 7 hours

3G web: 6 hours

WiFi web: 10 hours
2G voice:
Not available

3G voice: 7 hours

3G web: 6 hours

WiFi web: 10 hours
1Verizon hasn't announced iPhone plan pricing yet, so current smartphone pricing is used here for comparison.
http://www.engadget.com/2011/01/11/atandt-iphone-4-vs-verizon-iphone-4-whats-changed/

Internet-Connected TVs Could Change Multichannel Video Business Models

It would have been hard to miss the 'Internet-connected TV' theme at the recent Consumer Eletronics Show, any more than the tablet, smartphone or '3D' TV angles. The 2011 version of the Consumer Electronics Show highlighted many Internet-connected TVs, Blu-ray players and other devices.

That leads some observers to argue that TV manufacturers now own the relationship with the customer. That probably overstates matters too much.

It might be more accurate to say that the application and service providers featured as part of TV menus will increasingly be in position to try and do so, but that it is not the TV manufacturer but the application providers that will be able to contend for viewer loyalties. But most of that potential shift of gatekeeper control lies in the future, so long as the Internet apps featured on connected-TV menus provide much less than the variety of popular programs normally associated with cable TV, telco TV or satellite TV.

That noted, the growing installed base of Internet-capable devices, ranging from TVs and Blu-ray players to game consoles and even smartphones and tablets, increases the likelihood that content owners will someday come to financial terms with one or more distributors able to substantially replace the expected lost revenue from other distribution channels.


Why Verizon's Big iPhone Deal Has Risk, Not Just Reward

It's official: Verizon Wireless is going to be selling the Apple iPhone 4. Nothing has been said so far about rights to sell the iPad, though.

It's easy to see the upside for Verizon Wireless as it now can sell and support the Apple iPhone. The iPhone is an iconic device and the inability to sell it obviously hurts any mobile provider that doesn't offer the device. Beyond that, the iPhone exclusivity arguably has allowed AT&T to gain some customers Verizon Wireless was not able to compete for, including, doubtless, many former Verizon Wireless customers.

But there are challenges, as well. Verizon Wireless might have to spend $3 billion to $5 billion to subsidize customer purchases of the device in 2011 alone, based on the expected $400 per iPhone subsidy Verizon will absorb. That will hit profit margins, a concern analysts have had about AT&T as well.

DIY and Licensed GenAI Patterns Will Continue

As always with software, firms are going to opt for a mix of "do it yourself" owned technology and licensed third party offerings....