Ensquared the leading phone insurance Internet Site brings you latest on AT&T and Verizon interface on iPhone: Verizon iPhone, after two years of AT&T exclusivity, launched the Apple iPhone device through their outlets with much fanfare, but also under a lot of controversy. Without question Apple and the iPhone are corporately and technologically cutting edge entities in the cell phone space respectively, and the inclusion of Verizon as a distributor was a big coup for the latter – and on the surface a dampener for AT&T.
Any iPhone is an expensive device to cover if damaged lost or stolen. From an iPhone insurance viewpoint Verizon offer a one year coverage against Lost and Stolen and Accidental Damage for $119 pa as long as:
1. The customer also acquires their recovery kit,
2. Buys the device from Verizon and takes out iPhone insurance cover within 60 days of activation.
AT&T iPhone insurance is closer to $144pa with 30-day from activation leeway. In this regard Internet solutions on iPhone insurance from Ensquared, the #1 authority on iPhone insurance in the US and Canada, at $129.99 for two year Lost and Stolen or $89.99 for two years accidental (excluding Lost and Stolen) should be considered as extremely viable options. Advantages to the customer is two different products at affordable prices; unlocked iPhones bought from outlets other than AT&T and Verizon qualify; both AT&T and Ensquared exceed the claim limits offered by Verizon of $700 and don't require recovery kit purchases. Verizon have around $75 deductible but it entails buying their recovery kit while AT&T has a $200 deductible on iPhone 4 (no kit required). Ensquared iPhone insurance product range offers deductibles from $50 to $150 (depending on product acquired) with lower premiums and no special kit purchase requirements.
Moving beyond this back to the device itself there is much more than meets the eye. Firstly, AT&T who have had two years head start in establishing family plans are going to hold on to these customers as the cost of breaking the plan is not insignificant; secondly, just because Verizon has the iPhone does not mean that there is a rush away from AT&T. In fact, initial observations indicated that store sales at Verizon were disappointing. Verizon countered this by saying they were phasing the iPhone in and that many sales were executed online – up to 60% in fact. They estimate that stores offering the iPhone will increase to 8000 from 50% that number very shortly
A big thing that is not evident is that there is huge cash flow strain on Verizon in taking iPhone on. Simply put: The iPhone 4 real cost is in the region of $700, yet new subscribers are being offered the device with Verizon contract at a fraction of this cost (approximately $100), which means that Verizon are subsidizing the cost to the consumer. All this will impact Verizon bottom line.
The big winner of course is Apple. They are now distributing to both AT&T and Verizon and the service provider marketing and pricing is really not their problem. They make their margin either way. How the iPhone war will pan out in the end is interesting. There is a viewpoint that both AT&T and Verizon will be net winners, as they will each gain by a vastly expanded market for iPhones. If this bigger distribution boosts the overall market this is a big possibility. Then it boils down to which of the two offers a better service and more pointed marketing. AT&T has a reputation for dropping too many calls. Can Verizon take advantage of this?