Wednesday, December 8, 2010

Munster Says Apple Made Two Big Errors When Launching the iPhone

Piper Jaffray analyst Gene Munster says 'Apple has made two meaningful errors since its entrance into the iPhone business in 2007'

● The company did not originally subsidize the iPhone, but it quickly corrected this error by offering the original iPhone at a lower price shortly after its release, and offering the iPhone 3G at a subsidized price one year after the original iPhone launched
● We also believe that Apple's exclusive agreement with AT&T has limited demand for the device. We expect Apple to correct this issue by the end of [the first half of 2011] and add Verizon to the list of carriers that sell the iPhone in the US.

Munster believes the fact that only AT&T is carrying the iPhone is why Google Android phones are outselling iPhones in the United States.

"As an example, in countries where the iPhone is available on multiple carriers and competes with Android, we see the iPhone outselling Android. The greatest factor in the success of Android has been Verizon. Customers are loyal to their carrier, and once Verizon gets the iPhone, we believe Android's success in the US will be tested."

*thanks iclarified*

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- Posted using my iPhone 4

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