Why an Apple iPhone on Verizon is Bad – Would the FCC Step in?
Right now Apple has the corner on the Smartphone – 40 percent market share, to be exact in the US alone. Apple also has the corner in Applications – 99.4 percent of Applications sold are from the iPhone. So if January 27th comes and they announce a 4G phone in CDMA format working on Verizon, they will have officially pushed the envelope and poised themselves to monopolize the mobile phone industry. That could have a horrible reverse impact for Apple as the FCC will then step in.
It is no secret the Apple iPhone is the device to beat. It pretty much wrote the book on smartphones – taking over what Microsoft and Palm couldn’t accomplish. The only real change in the device was the switch from EDGE to 3G, and that became an added feature – have an underlying network to catch what 3G might not.
Remember those rumors surrounding the 2nd gen iPhone? People would notice changes, like a “3G” option in the settings, shipment transfers of 2 Megapixel cameras and 3G chips. The rumors flew back then before the announcement. Just like today with this upcoming announcement.
But there is one rumor that – if true – may hurt Apple more than help. If this rumor is true, the phone can dominate in the top 2 U.S. phone carriers’ markets. It could shift the power and give Apple at least 55% of market overnight – with a possible reality of 75% by Q3.
Step in the FCC.
Not to mention step in Palm and any Android phone maker. Example: Motorola Droid is a great phone in its own right. They found a good place in Verizon. Apple moving over could crush them. Verizon just took the Palm Pre Plus from Sprint. If Verizon was to also get the iPhone, do you think Palm won’t look for legal action?
This would definitely cause companies to complain, just like they did with Microsoft in the 90’s and IBM in 1969 with the Sherman Antitrust Act. Complaints that the FCC cannot ignore.
I suppose you could move the iPhone completely from AT&T to Verizon, but that might just cause a lot of issue with customers. It would definitely bring lawsuits from other phone companies that have special contracts with Verizon. It would definitely be a mess that not even Apple would want to get into.
Now to change gears a bit – if the tablet was to go to Verizon, thinking might be different. One would guess it’s a great idea– iPhone on AT&T and the tablet either on Both, or just on Verizon. Then again, there might be a rift between Apple and AT&T and people might not get the tablet if it means having 2 separate contracts.
Another thing to keep in mind – An iPhone takes a lot of wireless resource. Even though a possible 4G option is upon us, the infrastructure is just not there just yet.
Putting more 3G and 4G devices out there means you need to have more tower coverage. It’s not like you can put one tower out there and expect a 250k population to easily access it on a constant basis. Some cities like Chicago or New York – who have over 1 million people – would never be able to keep a phone connection.
So it goes to say if you were to switch a popular phone that takes up twice the resource as other phones, you might find that the full 3G coverage wouldn’t amount to a hill of beans if it’s oversaturated.
Could Verizon handle an iPhone revolution? It’s got coverage, but not speed. Slower download means someone could log more time on the phone just waiting for results. The sooner someone checks email, the sooner they get off the phone and move to something else. Then the next person has the connection to get their stuff done.
While it’s not what people would want, the best solution would be to keep the iPhone on AT&T and have the Tablet on both networks. A limited multitasking phone that takes up twice the resource in a GSM environment seems to be the best fit. It would also keep market share to a reasonable level and a partnership in good standings.
Oh yes. ONE MORE THING: While CDMA phones take less power, CDMA seems to “chatter” more, therefore taking more battery power than a GSM phone. If you think your iPhone battery is horrible now, just wait and see how fast the battery drains on a CDMA/3G iPhone. Even the Droid’s battery does not last a whole day if used in the same fashion as the iPhone.
That is, unless Apple and the chip makers came up with a remarkable new technology to keep the power consumption low. I suppose it could happen…