Saturday 24 December 2011

Verizon Customers Hold Out for the Apple iPhone 5?

Verizon Wireless (VZ) can expect to see its sales surge his year now that it finally has its hands on the Apple iPhone, analysts say. They predict the largest U.S. carrier will see a large boost in February, whenVerizon Wireless launches the iPhone 4. But Verizon could see another boost in July if Apple launches its next-generation iPhone, says Ross Rubin, executive director of industry analysis for research firm NPD Group.

Historically, Apple (AAPL)has introduced new versions of its popular iPhone in June, with July typically marking the largest month for sales, according to Rubin, whose research firm tracks monthly iPhone sales. July tends to mark the largest monthly sales month because folks living on two-year iPhone renewal contracts got their start back in June 2007, when thefirst iPhone came out.

"February will probably have a bigger bump in sales, because there will be more competition on the Verizon network in July when all the [Long Term Evolution] handsets that were announced at [the Consumer Electronics Show] will be available," Rubin says. Verizon's 4G LTE network is designed to run at a blazing-fast speed, which could potentially give Apple's iPhone 5 a run for its money.

Will Customers Wait for the iPhone 5?
Folks who are weighing whether to buy an iPhone 4 or to wait for an iPhone 5 are likely to make the decision based on when their current contract expires -- and whether they have a family plan that allows all family members to switch contracts at the same time, according to Deutsche Bank analyst Jonathan Goldberg. Such timing and contractual issues will likely be a bigger decision point than the phones' features, he says.

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