Verizon Wireless has finally got the iphone onto their network. It is stated in the article that they had the most sales in the first day than they had with any of their other phones such as the Storm and Driod. Now that they got the iphone it will most likely make their overall revenue increase. They also may gain customers back who went to AT &T when they first got the iphone. The economics of the cellular industry is give and take because it is based upon who has better coverage and who has obtained the rights to the best new technological devices. To choose a provider based on coverage is based solely upon where one resides, therefore if they move they might change cellular services. Cellular companies compete through the devices but also through prices. A lot of people will choose what cellular provider to use based upon the better/cheaper deals. Do you think the price of the iphone will decrease since AT&T now will be competing with Verizon?
3 comments:
I think you made a good point there since the competition among the both companies are rising. But I think I'm more interested in how they will improve their services to attract more customers and to introduce new products. Successful examples have lead to a large amount of profits for the largest career companies in the states and I wonder how other small businesses will maintain their revenues while competing with Verizon and AT&T.
I think that verizon will get their customers back with the iphone now available in their network. This is a big opportunity for verizon to make good offers to customers and provide good services at good prices. I think the competition between AT&T and verizon will increase.
Sapir
Good post - this is a very important event in the telecom industry. I don't necessarily think that prices of the iPhone will go down and that isn't something that I would focus on as that fall more in the consumer electronics industry. I would want to know how this is going to effect AT&T's business and what they are going to do in reaction to the increased competition.
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