Monday 1 August 2011

iPhone still needs to gain access to 25% of Americans

Looks like signing a pact is more efficient than living in competition. It is the case of Verizon and AT&T, who have been outselling one another in a direct rivalry. Now, with the new iPhone 5, displaying both Verizon and AT&T simultaneously, Apple went from a potential market of less than half Americans to gaining about three quarters of them. The remaining quarter is unlikely to become a prey, the iPhone 5 and the Apple’s iOS does not appeal to the unpersuadable part of the market, who are still faithful to Sprint and T-Mobile. Even if the truce brought Apple a significantly number of potential clients, it seems that the figures are still not enough.

Since there is no doubt that Apple can’t win T-Mobile and Sprint’s part of the market, they will have to aim at Android and BlackBerry’s share, targeting their phones in an effort to gain some new costumers or to retain their own. On the other hand, Sprint and T-Mobile may pull their tricks in case their clients wish for an iPhone, offering network experiences or reduced monthly pricing for iPhones.

Such offers would sure put a pressure on Verizon and Apple, rushing them to come with better deals to their users. Verizon might need to rethink better strategies, while AT&T should consider providing an improved networking cover, since users from smaller cities (less than five thousand people) can’t even get a 3G signal. So, even if a truce between the iPhone 5 and Sprint or T-Mobile would attract the other 25% of the population, there would be no competition left. And without a competition, there is no pressure and no need to winning the customers, to offering improved services and an improved iPhone 5 experience.

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