Tuesday, January 11, 2011
Verizon to Sell 3G Apple IPad
Verizon Wireless will sell a version of Apple Inc.’s iPad tablet computer that can connect directly to its 3G network, according to Francis Shammo, Verizon Communications CFO, but the availability of that device is not yet announced.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Verizon iPhone Either 'No Danger' to AT&T or 'Big Trouble'
At this point, nobody knows what impact the Verizon Wireless offering of the Apple iPhone will have on Verizon itself or AT&T. The sanguine view is that there will be some loss of iPhone customers on AT&T's network, but that such defections will not amount to more than 20 percent of the current iPhone base on AT&T. You can decide for yourself whether that is a significant problem or not.
Piper Jaffray analyst Christopher Larsen is among those who say the impact on AT&T will be manageable. For starters, most customers who want iPhones and are customers of AT&T already own them, so the incremental level of demand for AT&T already was somewhat limited. Of course, the argument is that there is a significant level of pent-up demand on the part of Verizon customers, but the iPhone impact there will be mostly about retention and a bit of incremental data services revenue.
But Hudson Square Research analyst Todd Rethemeier thinks the business impact on AT&T could be bigger. In 2010, AT&T had 11.1 million postpaid gross adds, with 8.6 million disconnects, resulting in 2.5 million net adds. About 37 percent of those gross adds, or 4.1 million, were on the iPhone, Rethemeier said.
If one assumes that AT&T loses 50 percent of the iPhone gross adds (AT&T and Verizon split the new iPhone sales evenly), this means that AT&T’s gross adds will drop by about 2.05 million (50 percent of the 4.1 million). That would suggest AT&T’s overall postpaid gross adds dip to nine million (11.1 million less the 2.05 million).
Piper Jaffray analyst Christopher Larsen is among those who say the impact on AT&T will be manageable. For starters, most customers who want iPhones and are customers of AT&T already own them, so the incremental level of demand for AT&T already was somewhat limited. Of course, the argument is that there is a significant level of pent-up demand on the part of Verizon customers, but the iPhone impact there will be mostly about retention and a bit of incremental data services revenue.
But Hudson Square Research analyst Todd Rethemeier thinks the business impact on AT&T could be bigger. In 2010, AT&T had 11.1 million postpaid gross adds, with 8.6 million disconnects, resulting in 2.5 million net adds. About 37 percent of those gross adds, or 4.1 million, were on the iPhone, Rethemeier said.
If one assumes that AT&T loses 50 percent of the iPhone gross adds (AT&T and Verizon split the new iPhone sales evenly), this means that AT&T’s gross adds will drop by about 2.05 million (50 percent of the 4.1 million). That would suggest AT&T’s overall postpaid gross adds dip to nine million (11.1 million less the 2.05 million).
But it is net adds where the pain could come. The important number is the net adds figure. Rethemeier thinks net adds could drop to 400,000, down from 2.5 million. That is a big deal.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Physical Delivery Still Trumps Online Video Delivery
The U.S. home video entertainment market, consisting of the rental and sale of movies and television shows either on physical media or using networks, amounted to $18.5 billion in 2010, Screen Digest’s preliminary forecast indicates. Network-delivered rentals and sales via the Internet and subscription TV systems accounted for $2.3 billion of this revenue, representing 12.2 percent of the total market.
Growth in network sales and rentals was dwarfed by the growth in the sales and rentals of Blue-ray titles. Revenue from all types of network delivery rose by 21.9 percent for the year, while Blue-ray retail sales soared 64.2 percent and rentals boomed by 105.5 percent.
“With consumers continuing to be very cautious in their spending habits, the popularity of the rental model reasserted itself in 2010,” said Tom Adams, principal analyst and director, U.S. Media, for Screen Digest. “This consumer mindset sent Blu-ray rentals soaring and could be seen on the Internet too, where video-on-demand (VOD) rentals jumped 55.7 percent. In contrast electronic sell-through (EST) on networks grew by just 27 percent."
Growth in network sales and rentals was dwarfed by the growth in the sales and rentals of Blue-ray titles. Revenue from all types of network delivery rose by 21.9 percent for the year, while Blue-ray retail sales soared 64.2 percent and rentals boomed by 105.5 percent.
“With consumers continuing to be very cautious in their spending habits, the popularity of the rental model reasserted itself in 2010,” said Tom Adams, principal analyst and director, U.S. Media, for Screen Digest. “This consumer mindset sent Blu-ray rentals soaring and could be seen on the Internet too, where video-on-demand (VOD) rentals jumped 55.7 percent. In contrast electronic sell-through (EST) on networks grew by just 27 percent."
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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.
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.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Verizon Launches iPhone: Video
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
"Speed" Not an Issue for Verizon Wireless iPhone
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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.
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.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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