As the enclosed article reports; it appears that Apple’s partnership with Verizon not only dinged AT&T but apparently it also stunted the rapid growth of their main rival (Google).
Should this really come as any surprise? Towards that end; you’ve got the two largest carriers (in America) with on-going complaints about one (AT&T) whereas the other is hammering away with advertising on how their network is vastly superior (Verizon)… which meant that a large percentage of would-be iPhone buyers either a) bought an alternative smart phone from another carrier (which was a major contributing factor to Android’s appeal / rapid growth); b) bought an Android-powered device because the were not interested in owning / burnt-out on all the hype, etc. regarding iPhone; c) waited to buy a Verizon iPhone in the hopes that they’d get a better end-user experience via their ‘vastly superior network’ (which turned out to be otherwise) and/or d) they held-off on buying an Android smart phone due to Apple’s usual release-cycle (which meant that it’d be available this summer versus this fall as is now the case).
Finally; this article is obviously just focused on America (which is fine) however, with the demand in the grey-market for Apple devices (prior to the official release in Vietnam the phone was selling for $1000.00, etc.) and the simple reality that outside of the OECD a large percentage of consumers use prepaid plans (whereas they’re not contractually obligated to a specific carrier via a 2-year contract)… among other contributing factors… this is really not that hard to grasp. In other words: Apple got out of the gates first (building a huge lead via redefining this entire segment). Others jumped in and put forth a massive ‘me-too’ push in order to make up for lost ground… an alternative option was availed (open as opposed to closed akin to the old Mac / PC debate) newer and more powerful handsets have been released from the likes of HTC and/or Samsung (to name but a few) with more power; features; functionality, etc.
Alas, Apple is under siege (perhaps a bit too strong of a term) and they respond by a classic, defensive flank (leveraging one party against another in order to ‘divide and conquer’). Coming full-circle to America, if it is indeed the case, this obviously was a tactical / strategic decision that played out well for the firm. And, should this also really come as any surprise: Apple is a consumer device company and they’re going to do everything within their power to protect and further their dominance (as would Microsoft or any other industry leader within their respective market space).
From the Washington Post: http://goo.gl/52CLO