Verizon Loses Ground to AT&T's iPhone as RIM and Palm Fade

Asymco's Horace Dediu offers an interesting analysis of new data on Verizon's smartphone device sales over the past year, concluding that, despite a growing Android platform, Verizon finds itself in a position in which it may have had little choice but to accept Apple's terms to bring the iPhone to the carrier.

104044 dediu verizon quarterly

Dediu's analysis is based on that fact that sales of Android and Windows Mobile smartphones at Verizon have grown only slightly faster than the rate at which sales of Research in Motion's BlackBerry and Palm's webOS devices have fallen so far in 2010, yielding an overall sales growth rate for Verizon far short of that seen with the iPhone on AT&T. But even Android by itself (and a small fraction of sales for Windows Mobile devices that can't be separated out from the Android data) isn't selling as well or growing nearly as quickly on Verizon as the iPhone is on AT&T.

In an apples-to-apples comparison, in Q3 the iPhone at AT&T outsold Android at Verizon (remember, same addressable market) by a factor of 2.5. This is with a variety of devices and vendors thrown in the market. We hardly ever get to see this finely grained a comparison when looking at platforms.

104044 dediu verizon monthly

Analyzing the data on a month-by-month basis reveals an even sharper trend of a steep drop in Verizon smartphone unit sales since August as a diversifying range of smartphone vendors have been unable to sustain overall handset sales for the carrier in the fact of the iPhone 4 on AT&T.

Dediu concludes that Verizon has likely been forced to reconsider its 2009 strategy that saw the carrier betting on Android to slow the trend of customers defecting to AT&T for the iPhone. That change of heart coming with the realization that the iPhone is continuing to steal growth from Verizon's offering may have been responsible for the carrier finally sitting down with Apple to get a deal done for a Verizon iPhone.

Of course, there has been much rumor and speculation about AT&T's exclusivity period for the iPhone, which almost certainly played a significant role in the timing of negotiations between Apple and Verizon, but if the sales data presented in the new report is true, it represents an interesting look at Verizon sales figures that suggest that the carrier may truly need to offer the iPhone if it wishes to fight off AT&T's iPhone-driven momentum in the smartphone market.

Related Forum: iPhone

Popular Stories

m5 macbook pro deal

Why You Shouldn't Buy the Next MacBook Pro

Tuesday February 10, 2026 4:27 pm PST by
Apple is planning to launch new MacBook Pro models as soon as early March, but if you can, this is one generation you should skip because there's something much better in the works. We're waiting on 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips, with few changes other than the processor upgrade. There won't be any tweaks to the design or the display, but later this...
iOS 26

Apple Releases iOS 26.3 and iPadOS 26.3

Wednesday February 11, 2026 10:07 am PST by
Apple today released iOS 26.3 and iPadOS 26.3, the latest updates to the iOS 26 and iPadOS 26 operating systems that came out in September. The new software comes almost two months after Apple released iOS 26.2 and iPadOS 26.2. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes, ...
maxresdefault

Apple Shows Off a Key Reason to Upgrade to the iPhone 17

Saturday February 7, 2026 9:26 am PST by
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie. "Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
apple wallet drivers license feature iPhone 15 pro

Apple Says These 7 U.S. States Plan to Offer iPhone Driver's Licenses

Monday February 9, 2026 6:24 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
Apple Logo Zoomed

Apple Expected to Launch These 10+ Products Over the Coming Months

Tuesday February 10, 2026 6:33 am PST by
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more. Apple is expected to release/update the following products...