Verizon iPhone Pre-Orders to Start at 3am ET on February 3rd, Offering AT&T iPhone Trade Ins
Verizon has begun sending out information to corporate customers with more details about their iPhone launch. Verizon is offering existing customers a chance to buy the Verizon iPhone on February 3rd, a week before the general public.
Context & Ripple Effects
Two weeks after Verizon Wireless and Apple announced the iPhone 4 partnership ended AT&T's exclusivity, the launch mechanics are now public: after listings briefly appeared on Apple's site, Verizon has told corporate customers that pre-orders open February 3rd at 3am ET, a full week ahead of general availability.
The rollout is aggressive on two fronts — an early-access window for existing subscribers and trade-in offers aimed squarely at pulling AT&T iPhone owners across. It lands on a subscriber base where only 26% carry smartphones, and alongside the $30 unlimited data plan COO Lowell McAdam confirmed ahead of Verizon's investor meeting. The story has drawn wide pickup, including AppleInsider flagging a BlackBerry glitch on Verizon's network that raised reliability questions days before launch.
First-order effects
- AT&T iPhone owners get their first official exit ramp: Verizon's trade-in program lowers switching costs just as the device becomes available on a second US network for the first time.
- Verizon's existing and corporate customers can buy a week before the general public, concentrating launch-day demand — and churn risk for AT&T — into a single overnight window.
Second-order effects
- AT&T faces pressure on both price and retention: Verizon's $30 unlimited plan undercuts the value of AT&T's tiers, and AT&T has reportedly begun adjusting its messaging plans in response, though that move remains unconfirmed.
- RIM is exposed on its home turf — the AppleInsider-reported BlackBerry network glitch hands Verizon's new iPhone pitch an availability argument against the devices Verizon subscribers would otherwise default to.
Third-order effects
- If the pattern holds, US iPhone distribution shifts from carrier exclusivity to multi-carrier competition, with differentiation moving from who sells the phone to data pricing, network claims, and upgrade economics against a base where roughly three-quarters of Verizon subscribers still lack smartphones.
The trend: The smartphone market is moving from exclusive-carrier launches to open multi-carrier competition, with early-access windows and trade-in programs as the new churn weapons.