A Verizon iPhone Could Offer Huge Profits, New Market For Apple
October 12, 2010
If an iPhone from Verizon is really coming in 2011, it could provide a huge profit windfall for Apple. Plus, it would allow the Cupertino, California-based company to offer its top selling product to CDMA customers for the first time.
There are currently 543 million CDMA users globally compared to 3.45 billion GSM phone users in the world. Based on these numbers, you might conclude that Apple should simply stick with the GSM network and its current handset. But, that isn’t the whole story.
According to asymco, a CDMA iPhone would increase Apple’s addressable market for an iPhone by 16 percent:
It would be safe to assume that the iPhone will be able to address 543 Million additional users. They represent about 13% of all mobile subscribers but the increase in addressable base is about 16%.According to Gigaom, the average selling price of an iPhone is $600 per handset. The Apple Blog estimates that 10 million Verizon iPhones could be sold in the first year, which represents a potential $6 billion in additional sales revenue for Apple. Apple’s total potential incremental revenue, when considering the entire worldwide CDMA market is $32.4 billion. To put this into perspective, Apple total revenues in 2009 were $36.5 billion. A Verizon iPhone could be huge for Apple, Verizon and the entire worldwide CDMA handset market. Stay tuned.
