Verizon Wireless CEO Dan Mead, left, and Apple COO Tim Cook announce that Verizon will carry Apple's iPhone.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, when Verizon 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 the first 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.

But what features are we talking about? A number of industry-watchers predict that any upcoming Verizon iPhone 5 will likely include global phone capabilities via the addition of a Global System for Mobile Communications (GSM) chipset.

Roughly 70% of carrier networks overseas use GSM. And although Apple makes a GSM-only iPhone for AT&T (T), it didn't include the technology in its iPhone 4 for Verizon. Instead, the Verizon iPhone uses a Code Division Multiple Access (CDMA) chipset, which runs on Verizon's older CDMA network.

"Some people may wait for a bigger and better deal with the iPhone 5, but the iPhone 4 is here and now," Goldberg says. "The average consumer doesn't pay attention to tech blogs or product road maps to even know an iPhone 5 is coming."

That may be too bad for consumers, because once they sign a two-year contract with Verizon or rival AT&T, they'll be locked in -- unless they're willing to pay a penalty fee to break their contract or pay the full price for a new phone without any rebate help from their carrier. A Verizon Wireless spokeswoman notes that upgrades are allowed only if a customer's contract has expired.

"No Inkling" of What's Coming

But not much is yet known about the features for Apple's next iPhone, Rubin says, and consumers would be foolish to hold out for the unknown.

"At this point, there is no inkling of what the next iPhone will bring," Rubin says. "In the spring, Apple usually gives us the next version of its iOS [mobile operating system], and that may give us an inkling then. But I can't imagine someone holding off a purchase without knowing anything except for some notion it will be better."

Apple may be considering adding LTE capabilities to the Verizon iPhones, for example, but Rubin doesn't expect that to occur for at least a couple of years. He thinks Apple will wait for LTE chipsets to mature and for Verizon's LTE network to expand.

In a recent report, Forrester Research analyst Charles Golvin wrote that Verizon could win big if it convinces Apple to add LTE capabilities to the iPhone.

"[LTE] is the future '4G' technology path for both Verizon and AT&T," Golvin wrote. "Verizon's LTE network is live today for roughly 100 million Americans, delivering jaw-dropping, if scantly utilized, speeds; AT&T will not launch until later this year. If Verizon can convince Apple to accelerate its incorporation of LTE, the carrier will be able to deliver a significantly accelerated iPhone experience to more customers than its competitor when the product launches -- and attract a significant number of the first wave of buyers, including the Apple acolytes."

That's just what Verizon love would to see.







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18 Comments

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dotd446

This article is full of spelling and grammar mistake, how embarrassing for AOL. I stopped reading after the first sentence. If you can't spell the words right, it's not worth my time to read it!

January 15 2011 at 9:00 AM Report abuse rate up rate down Reply
2 replies to dotd446's comment
obiwan49

if you stopped after the first sentence then how do you know the article is full of grammar mistakes?

January 15 2011 at 9:16 AM Report abuse +1 rate up rate down Reply
wingsontime

at least they try professor? don't forget that you use toilet paper to.

January 15 2011 at 6:55 PM Report abuse rate up rate down Reply
jeffgdw

This is just to the ones saying that they don't understand why people use cell phones. It's a choice number one and just because we choose to use them doesn't mean you have to. But don't flag me down because your car broke down and you have no way to call someone for help. You can just walk your little happy butt to the nearest place or just sit there and either freeze to death or die of heat stroke, depending on the time of the year. Secondly, I would rather have a phone that I can take with me in case something does happen, instead of paying for a landline that would get absolutely no use. Come to think of it, I don't know one single person that even has a landline any more. Third, with the phone I have, Sprint Epic 4G, it is basically a theatre, a computer, a phone, a gaming system, a gps system, plus more, all in one device. So now I only need to carry one item instead of loading up several different ones every time I take a trip. It is much more convenient in my opinion.

Last, why do you drive the car you drive? Why do you wear the clothes you wear? Why do you drink this type of soda? I mean come on already. I can sit here and question every thing you do or I can just mind my own business and not worry about what other people do with their life or time. I choose the second and I would advise the same to you. You don't pay for my lifestyle and you have no say so over what I choose to purchase and use. Thanks and hope you don't break down on your way home today. Lord knows carrying a tiny device in your pocket just in case is way too much to ask of some people.

Android does kill the iphone though. Everyone I talked to says it has to be jailbroke to even do anything, whatever that means. Besides that, the plan rates are a huge difference when you start comparing the companies. AT&T from my understanding charges seperate for each thing, so much for internet, plus texts, plus the plan price, where Sprint just has one flat fee that comes with all of those features included in the price. That alone makes me stay away from those other companies.

January 15 2011 at 8:32 AM Report abuse rate up rate down Reply
Aftermath Alex

Why people are so nice on this blog..chill guys...anyways I'd wait just because of the CDMA network for sure... http://iphone.blogupdates.net/verizon-iphone-facts/

January 15 2011 at 6:41 AM Report abuse rate up rate down Reply
Dave & Wendy

I'M NOT WAITING FOR YHE NEW I-PHONE, I'M WAITING FOR MY CONTRACT TO EXPIRE, SO I CAN DROP VERIZON. I NEVER HAD ANY PROBLEM'S WITH ALTELL, BUT AFTER VERIZON HI-JACKED THEM I,VE HAD NOTHING BUT PROBLEM'S

January 15 2011 at 6:05 AM Report abuse +1 rate up rate down Reply
pivo12

I wouldnt bother with the I-phone. I love my Droid. You can talk to it to do web searches, etc. For example, one evening, we were driving and I needed to know what time bed bath and beyond closed. I simply said "Bed Bath and Beyond" into my droid and the nearest store location came up with their number. then we wanted to make a reservation at Olive Garden, So i did the same "Olive Garden" the nearest one poped up and dialed the number to call them. My buddy was in the back with an I phone. By the time his search for Bed bath and beyond came up I was already done calling both places.. It could have been a great commercial for the Droid...

January 14 2011 at 7:28 PM Report abuse +1 rate up rate down Reply
sabdouch

My 4 contracts are up but I will wait for the 4g iphone, with the compitition on the verge of 4g release it wont be long 3g is old hat

January 14 2011 at 4:12 PM Report abuse rate up rate down Reply
1 reply to sabdouch's comment
rose

I am waiting to see if they come out with the 4g access iphone too. Supposedly Verizon is coming out with 4g here in the south. Woohoo, 3g is so slow it is too frustrating.

January 15 2011 at 7:29 AM Report abuse rate up rate down Reply
donut999

it would seem nuts to jump over to verizon if you already have an iphone or even
if you just wanted to change over to one. it is not far-fetched to envision a
headline 3 or 6 months from now ala "verizon subscribers up in arms over service
problems" and the story being the millions of new and switched have caused a system overload and service problems for all verizon customers. this is what happened to at&t. I won't necessarily wait for the 5, but am going to wait a bit. if everyone leave at&t, it may turn out their service will be the best out
there.

January 14 2011 at 4:06 PM Report abuse rate up rate down Reply
sporty1jro

I would say customers shouldn't wait for iphone 5 or bother with iPhone 4. Get an Android based phone. There are more varieties from more manufacturers with more features with the Android. Apple makes 1 model once a year for 1 carrier (now 2 but they are identical except for the CDMA change) and they can't get that right. My Droid has a larger screen, a user repalceable battery, external memory, and so far 5 friends that have tried it have all given up their iPhones for a Droid because they say it is so much better. I got the iPhone 4 and admitted he regrets it now, not only for the phone but also AT&Ts network.Plus I'm not a slave to Apple only authorized software and apps. No thanks to iPhone, regardless of who carries it.

January 14 2011 at 3:20 PM Report abuse +1 rate up rate down Reply
1 reply to sporty1jro's comment
rose

I will stick with my iphone. My brother has a droid and loves it but I still love my iphone more than I do his droid.

January 15 2011 at 7:29 AM Report abuse rate up rate down Reply
Novasol

On another note, my environmental impact owning and using a cell phone doesn't exist because I don't own one. Remember this "LESS IS MORE" and apply it to almost every aspect of your life. You'll be happier.

January 14 2011 at 2:38 PM Report abuse +2 rate up rate down Reply
sharp914

Yes the Verizon/Apple Iphone 5 is by far the best one made. It faster and far less flaws. expect to see it at your local verizon store in august 2011.

January 14 2011 at 2:36 PM Report abuse rate up rate down Reply