VodkaPundit

So Long and Thanks for All the Dropped Calls

It’s official — iPhone is coming to Verizon. They haven’t announce the date yet, but think weeks, not months. And probably not many weeks.

What will happen to AT&T’s bottom line, losing iPhone exclusivity? Not very much at first. Customers are locked in two two-year contracts that are expensive to break out of. Also, it’s very difficult to get people to change carriers, even ones with as many issues as AT&T has. So, yes, AT&T will lose iPhone users to Verizon, but not all that many or at least not all that quickly.

The thing instead to keep your eye on is how big a hit Verizon has here. In other words, what will iPhone do to Android and BlackBerry sales? iPhone expansion won’t be any kind of nail in any kind of Android coffin — but I suspect it will accelerate Android’s “race to the bottom” as the low-cost leader.

And will we see a price war between AT&T and Verizon?

UPDATE: Place your orders as soon as February 10. Same prices as the AT&T models, but with an included mobile hotspot for up to five devices. To compete, AT&T will have to lower prices or allow tethering. Sweet, delicious competition!