by Thomas Sayle
January 13, 2011
As we all know, Verizon Wireless made the announcement earlier this week regarding the launch of the iPhone 4. Guess we can finally put that rumor to bed, right? Coupled with their most reliable network in the nation, the phone should do fairly well.
Yesterday, Verizon announced that they were doing away with all early upgrades and discounts for existing customers. The move forces people to upgrade before January 16th to get their discounts or be forced to pay full price when upgrading their phone.
Facebook, Twitter and many other social media sites are booming with people who are upset that this is happening. So, why did they do it?
Business, nothing more.
Verizon knows that millions of customers are getting ready to jump ship and move over when the iPhone launches. Instead of depleting iPhone inventory with upgrades from existing customers, Verizon is saving that inventory for new customers. New customers will pay $199 for the iPhone, and Verizon will cut its losses down by forcing existing customers to pay full retail for their new phone.
Don't be surprised when Verizon Wireless stores ask you if you are an existing customer when purchasing the iPhone in a few weeks. Just as they did when the Blackberry Storm launched, stores will more than likely hold their inventory for new activations instead of upgrades. New activations are worth twice the money that an upgrade is.
Now, if you want my opinion on the iPhone coming to Verizon, see my blog post titled, "Is the Verizon iPhone too late?"
Until next time,
T
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