January 24, 2012
It looks like Sprint’s strategic decision to focus on the iPhone has finally allowed Verizon Wireless to sell more 4G phones than Sprint, according to financial numbers released Tuesday. According to Verizon the company sold 1.6 million 4G LTE smartphones during the quarter, as well as another 700,000 4G devices like USB modems and Wi-Fi hotspots. And while Sprint never calls out its 4G numbers its 4G partner Clearwire today pre-announced some Q4 metrics including 900,000 new 4G wholesale activations, which you can pretty much translate into being mostly Sprint 4G smartphones and a small number of other devices, like hotspots and USBs.
(Editor’s note: You won’t find the 4G LTE device breakout numbers in the Verizon press release; the numbers were discussed during the conference call, and a quote with the figures was provided to us by Verizon.)
What’s the 30-second analysis on all this? Sidecut Reports sticks by the premise of our latest report, the 4G LTE Market Report for January, 2012, in which we conclude that 4G LTE phone sales for all providers, including Verizon, are going to stay essentially flat until we see an LTE-capable Apple iPhone hit the market. As proof of the iPhone’s continuing popularity look no farther than Verizon’s Q4 numbers: 4.3 million iPhone activations vs. 1.6 million 4G LTE phone activations. Almost a 3-to-1 preference for the 3G iPhone vs. any 4G LTE choice.
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January 13, 2012
If you’ve got an iTunes account, congratulations — you can now more easily purchase a Sidecut Report, our new 4G LTE Market Report for January, 2012. Just download iTunes, go to the iTunes store and search “LTE” and check the results under Books — you’ll find our red-covered report if you scroll down a bit.
It’s a buck more when purchased on iTunes (gotta pay the middlemen) but at $2.99 it’s still a bargain and it gets you up to speed on the speediest wireless networks in town — LTE. Get your copy for your iPad today and start Sidecutting — iBookstore style!
January 5, 2012
For a company that has spent most of the past few years defending a sub-par infrastructure, AT&T looked impressive today, announcing 11 new markets for its next-gen 4G LTE service. But as impressive as that sounds, you can expect sales of phones for AT&T’s new network to be slow, trailing far behind the ho-hum numbers being generated by Verizon Wireless, whose LTE network covers far more markets than AT&T’s.
If you’ve been following our coverage of Verizon’s LTE experiences, you can surmise that the same problems keeping folks from buying 4G LTE phones from Verizon — a lack of compelling new devices or applications, plus a general interia of preference for the Apple iPhone — will hit AT&T, probably even harder since AT&T will have the additional hurdle of trying to convince folks to buy phones that don’t work in every U.S. market just yet. Kevin Fitchard over at GigaOM points out quite clearly another flaw in that even in its “live” markets, AT&T doesn’t have anywhere near full coverage, making it even a tougher sell to the network-savvy folks who are likely to be the first customers for a 4G device.
While we expect to hear more news about forthcoming LTE devices from AT&T at its annual developer conference next Monday, the current crop of LTE-capable smartphones for AT&T has the same pricing problem of Verizon’s roster — the AT&T LTE phones range in price from $199.99 to $249.99, the latter a premium over the basic iPhone pricing of $199.99. So — kudos to AT&T for building out its needed next-gen network a little faster than expected. But that shouldn’t mean any pickup in 4G LTE phone sales, if Verizon’s history is any barometer.
Want more detail on why we see a reluctance in the marketplace to buy 4G LTE phones? Buy our 4G LTE MARKET REPORT for January, 2012, for just $1.99, downloadable immediately.