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To: sylvester80 who wrote (3036)2/28/2011 4:47:13 PM
From: Eric LRead Replies (1) of 3170
 
Magnificent Failures ...

Verizon Wireless sold more iPhone 4s during its initial launch than any other product in the carrier's history, said Chief Executive Daniel S. Mead

Syl,

<< Why has the verizon iPhone has been such a dismal failure ... Come on.... step up and answer the question ...>>

>> Verizon Wireless CEO Says iPhone Sales Strong

Shayndi Raice
The Wall Street Journal
February 25, 2011l

online.wsj.com

Verizon Wireless sold more iPhone 4s during its initial launch than any other product in the carrier's history, said Chief Executive Daniel S. Mead.

Mr. Mead, who made the remarks in an interview, tried to counter reports that sales of the iPhone were not meeting the company's expectations. Compared to the usually large crowds that have greeted previous launches of the iPhone, the Verizon iPhone launch saw modest crowds at some high-profile locations in major cities.

Despite the concern, Mr. Mead said it wouldn't release iPhone sales figures until the company's next earnings release. Mr. Mead said reports of lackluster sales were incorrect, arguing that the modest store lines were due to heavy online sales and an intentional strategy aimed at spreading out the purchasing activity.

Oppenheimer & Co. analyst Timothy Horan estimates that Verizon Wireless will sell 3 million to 4 million iPhone 4s in the first quarter of 2011, and 10 million for the year. Last summer, Apple said it sold 1.7 million iPhone 4s during the first three days the device was available to customers. However, that number was for total world-wide sales.

Verizon first offered pre-orders of the phone to existing customers on Feb. 3, and then began selling it in stores one week later. Mr. Mead said the company staggered the launch of the Apple Inc. device in phases so that customers would have a smooth purchasing experience. "It was a conscious decision to spread the launch over three phases," said Mr. Mead.

Mr. Mead said more than 60% of iPhone sales occurred online. That heavy activity online contributed to short lines on launch day, which were noted by many news outlets. "If we had not done online, you would have seen a much different flow in the pictures," he said. In a few days, the company will double the number of stores that sell the iPhone, going from 4,000 to 8,000.

Mr. Mead also said he expects Apple to offer mobile devices on the carrier's 4G technology, although he declined to specify the nature of those products or when they would be released. Verizon's fast fourth-generation wireless network, which it recently launched, runs on a technology known as Long-Term Evolution, or LTE.

"You'll see more coming from Apple on LTE," he said. "They understand the value proposition of LTE and I feel very confident that they are going to be a part of it."

Although Verizon is heavily promoting its launch of the iPhone, Mr. Mead said the company will continue to strongly support other operating systems such as Google Inc's Android, Research In Motion Ltd.'s BlackBerry, and eventually Microsoft Corp.'s Windows Phone 7.

When Mr. Mead heard that Nokia Corp. had struck a partnership with Microsoft to adopt Windows Phone as its principal smartphone operating system instead of its own Symbian software, he said he contacted Nokia Chief Executive Stephen Elop to congratulate him and express his interest in learning more about the company's plans.

"When you think about the capabilities of those two companies, we are very interested," he said. At this stage, Mr. Mead said Verizon is waiting to hear from Nokia on how to move forward.

Verizon Wireless is a joint venture between Verizon Communications Inc. and Vodafone Group PLC. ###

>> For Every $100 In Sales That Motorola Makes, $28 Is From Verizon [Eggs In A Basket]

Stefan Constantinescu
IntoMobile
February 21st, 2011

intomobile.com

Motorola’s story throughout the years has been riveting. The firm practically invented the mobile phone, had several iconic products including the StarTAC and RAZR, but then all of a sudden thing just stopped working. They got too big, too confident, found a forumla that worked for them in the past, and just kept on executing it despite getting less and less money each quarter. That all changed when Motorola announced it would split up, that the mobile division would become their own unit, and that the new CEO, Sanjay Jha, who used to work at Qualcomm, would bet the future of the company on Android. Things have indeed paid off, and while Motorola isn’t the size that it once used to be, they are making money, and they’re making products that people love. The various DROID devices on Verizon have been a smashing success, so much so that during 2010 about $28 for every $100 Motorola made in sales came from that sole operator. That figure used to be 17% in 2009 and 13% in 2008. During those 2 years revenue from Sprint measured 13% and 7% respectively.

The company needs to ask themselves though, is this healthy? Their smartphone strategy isn’t in their hands. It’s all Google. They dictate release dates, features, everything. MotoBLUR, created in an attempt to differentiate Motorola’s products versus the slew of other Android devices on the market, is just a terrible and shows how difficult it is for them to grasp good software. Verizon, what if one day they wake up and say to themselves that they need more Samsung products in their portfolio, or what if LG catches up to the competition in 2011 and 2012 with their awesome new devices, where does that leave Motorola?

>> Motorola Admits Verizon iPhone Triggered 'Slowdown' in Droid

Motorola Warns Verizon iPhone already damaging

Electronista
January 26, 2011

a5i5.sl.pt

Motorola chief Sanjay Jha during the company's fiscal results call acknowledged that the Verizon iPhone was already damaging his company's smartphone performance. Shipments were not only down both in the wake of the January 11 Apple news but even in the weeks before it was made official. The CEO wouldn't quantify numbers but admitted that anticipation for the iPhone had led some to hold off on buying a Droid.

"We have seen a little slowdown in our sellthrough of our devices," Jha said. "We have seen that effect even prior to the iPhone."

He was still optimistic that Motorola could succeed but was counting primarily on diversifying its high-end Android mix in the US beyond Verizon, such as with the Atrix 4G at AT&T. Motorola also still had a "meaningful relationship" with Verizon. He didn't assume that Motorola would necessarily hold its leading position at the CDMA carrier and said "time will tell" as to whether the iPhone or Droid lineups would be more popular in stores.

The phone designer added that mid-tier smartphones were a problem in the US. Even after US carriers like AT&T and Verizon imposed bandwidth caps or offered lower tiers, which Motorola assumed would drive users to cheaper phones, customers kept buying high-end phones like the Droid 2 and Droid X. That worked against Motorola as it misjudged sales and had to compete more in the same space as rivals like Apple. ###

This should be an interesting quarter. Verizon currently accounts for fully 28% of Motorola sales and they are Moto's largest customer for both featuere phones and smartphones, their smartphones are all Android based, and they are the 3rd largest supplier of Android based smartphones globally. Will Apple dent 'em this quarter? How badly? Will Motorola Mobility be profitable on either a GAAP or pro forma basis this quarter? Will Apple once again be the leading mobile wireless revenue and profit producer and increase product sales sequentially in what is generally a down quarter (although they surprised to the upside in that regard last year?

Anyone here care to gueesstimate how many iOS based iPads and iPod Touch's will be sold-in to channels globally and/or sold through from channels to end users globally this quarter?

- Eric -
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