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Apple could sell twice as many iPhones by going with Verizon Wireless

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Apple, Inc. (NASDAQ: AAPL) could sell twice as many iPhones if it decided to dump partner AT&T, Inc. (NYSE: T) as the only exclusive provider of the iPhone, according to some Bernstein Research analysts. Would Apple dare do that? Since Apple and AT&T joined exclusive forces almost two years ago, Verizon Wireless has emerged as the largest wireless carrier in the U.S. -- and none of its 87+ million subscribers has an iPhone. Mighty tempting, Apple.


Although Apple would have to possibly sacrifice iPhone profit for market share, the balance could easily lean in its favor. There are some instances when market share makes more sense for the long term (as in, first-mover) as opposed to short-term cash. It could also charge more for the Verizon iPhone as well to help with the burden.

With Apple sitting on a huge pile of cash and doing quite well even in the face of a recession, does it need to push the iPhone to the largest carrier in the U.S.? The opportunity may be there and Apple would blow the doors off the show by indicating at next week's WWDC event that it had indeed joined with Verizon Wireless to make the iPhone even more popular than it already is. Breaking exclusivity with AT&T would cost the company, but it may be worth it. There are probably millions of folks waiting to buy an iPhone once it's available on networks other than AT&T.

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Last updated: November 25, 2009: 05:57 PM

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