Verizon talking to Microsoft about iPhone rival partnership? Here we go again.

Posted Apr 29th 2009 6:30PM by Brian White
Filed under: Competitive Strategy, Microsoft (MSFT), Verizon Communications (VZ)

Verizon Wireless, a division of Verizon Communications, Inc. (NYSE: VZ), and Microsoft Corporation (NASDAQ: MSFT) may be partnering soon to take on the Apple, Inc. (NASDAQ: AAPL) iPhone. The iPhone, which has re-defined the mobile handset and has racked up huge sales worldwide in the 22 months in existence, needs a strong competitor. So far, all the iPhone "killers" have been anything but.

Can Microsoft change that? The company has a history in the last half-decade of chasing innovation set by others (think Zune), and it's hard to imagine Microsoft coming out with a paradigm-shifting wireless handset that could equal or surpass the iPhone and the iTunes/App Store double punch Apple uses to keep iPhone users glued to the brand.

But Microsoft can't stand still. PC sales are flagging and wireless smartphone sales are booming despite the recession. The only problem is this: it will be late to the game behind Apple. With millions of iPhones sold worldwide and over a billion applications downloaded from the Apple App Store, Microsoft would have to deliver an incredible knockout punch just to be in the game with Apple and other smartphone manufacturers. Apple's strength is that it controls the iPhone ecosystem (like the iPod ecosystem) -- can Microsoft exert the same with Verizon Wireless as a partner?

Tags: DEnny Strigl, DennyStrigl, iPhone, Microsoft Corp., MicrosoftCorp., MSFT, Verizon iPhone, Verizon Wireless, VerizonIphone, VerizonWireless, VZ

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Reader Comments (Page 1 of 1)

4-29-2009 @ 11:56PM

patriot555 said...

This reminds me of how Verizon tried to get into the Nextel-dominated 'push-to-talk' phone biz. You gotta get in the game earlier!

4-30-2009 @ 3:06AM

The Large Moose said...

Ah boo on the cell phone companies, they always find new and exciting ways to screw us. Oh well at least I can get e-mail in Antarctica if I wanted to!

4-30-2009 @ 1:12PM

sitruc said...

BloggingStocks fails once again. Ever heard of Windows Mobile? MS is big in mobile phones and has been long before Apple. Also, what is wrong with speculation around an iPhone on Verizon? Verizon didn't want Apple because Apple wanted a nice piece of the contract along with the handset cost. That is not the norm for handset manufacturers. It wasn't a good deal and I doubt Verizon would do things over. The negotiations have always come down to what is the service provider willing to give up to Apple. What should be looked at is that Verizon is moving towards a LTE network as are most GSM carriers. It is more likely that Apple will make a LTE version of the iPhone than a CDMA phone.

7-08-2009 @ 12:09PM

Richard H said...

I use WM 6.1 on a pretty powerful handset (HP iPaq 910c) and I think Microsoft have missed the boat. WM7 may help but I think the right moves from an alternative (like Google or more from Apple) could leave MSFT behind.

If MSFT had put the right investments in Windows Mobile it could have been a common platform for phones, media players and more. I think people are looking for something that is consistent in managing entertainment and communication. I like Windows Mobile because I already am a big user of Outlook, MS Office etc. But Apple probably has the best entertatinment platform linking home, phone and portable media player.

I would like to see MSFT get rid of that Sync thing and make Windows Mobile the basis for an in-car system - linked to (or embedding) a WM phone you'd have internet access, navigation, web radio etc. Then use WM instead of Zune and then you have a consistent platform from home to phone to media player to car etc.