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Thursday, January 13, 2011

Verizon Wireless to sell iPhone in February (Reuters)

NEW YORK (Reuters) - Verizon Wireless plans to sell the iPhone to Apple Inc. for as little as $200 beginning next month, putting the smartphone in the Centre of his battle of high-stakes with AT & T Inc., for wireless clients.

Announcement of Verizon Tuesday that it would begin selling the phone February 10 puts an end to the status of three years AT & T as the exclusive U.S. provider for iPhone. Pré-Commandes start February 3.

Verizon Wireless, said phone, a version of the iPhone of Apple 4 designed to run on the Verizon network, with a two year contract $199.99 for the 16 GB model or $299.99 for the 32 GB model to sell.

Prices are the same than fresh AT & t for models.

Verizon, a company of Verizon Communications and Vodafone Group Plc, said that the phone would be available to 2,000 stores across the country. She refused to comment on service price plans.

AT & T, who loses his beloved place exclusive U.S. provider for iPhone, should face its toughest year since 2004 in the Verizon deal with Apple.

"The real question is not how much Verizon iPhone will sell, but only AT & T in response," said Bernstein analyst Craig Moffett, who attended the event from Verizon.

Analysts, pointing to the years of pent-up demand among the customers of Verizon Wireless, expect the company to sell iPhone from 9 to 13 million this year.

CALL TO ALL COMPETITORS

Kim Caughey Forrest, a senior analyst with Fort Pitt Capital Group, which holds shares of Verizon, said that she believes that many people in the Eastern United States who wanted an iPhone, but have been reluctant to get a reason for concern about the quality of AT & T network.

She cited her hometown of Pittsburgh, Pennsylvania.

"Many people in Pittsburgh is really excited at the idea of having an iPhone from Verizon. I do not think that they are alone. I do not think that we are a single market, "she says."

Nevertheless, at & T, who came under fire for sparse wireless service in some cities, added a 15 million new iPhone customers in 2010. Now, it is planned to launch a new advertising campaign hitting Verizon.

IPhone users who want faster speeds, the ability to speak and use applications at the same time and unrivalled global coverage, the only choice is to AT & T, "a spokesman for AT & T said after the announcement of Verizon." "

Another company that threatens new deal is phone maker Motorola mobility, which has made a return as the flagship phone salesman for Verizon Wireless for the past year.

Motorola phones run on software Android from Google Inc., which became more formidable rival Apple in cell phone technology.

Last week Verizon Wireless said that it was committed to selling products from Motorola, including a high-speed phone, called the phone Bionic Droid and a Tablet called the Xoom.

Verizon Wireless problem can be the high cost of sales of Apple products come at a premium to other smartphones, said analysts.

As AT & T, Verizon Wireless shall bear the cost of devices to convince people to sign long-term contracts.

Verizon Wireless will have to pay $ 400 for each iPhone sold if it retains the award in accordance with the provisions of the AT & T, John Hodulik estimated UBS analyst.

Verizon shares fell by 2% to $35.16, while AT & T shares were down by 1.3% to $29.97. Apple shares slipped less than 1% to $341.50.

(Additional by Gabriel Madway in San Francisco, Jim Finkle at Boston and Jennifer Saba Ritsuko Ando in New York.) Written by Paul Thomasch. (Editing by Robert MacMillan)

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