5 Reasons Verizon Won’t Sell The iPhone

The grass is always greener and everybody with an iPhone lusts after Verizon’s massive network.  Don’t listen to Luke Wilson — Verizon’s network is better than AT&T’s.  And Verizon’s dad can beat up AT&T’s dad too.  So the rumor mill churns out story after story about Verizon carrying the iPhone, but guess what — they shouldn’t sell it. They won’t sell it.  It’ll be bad for business.  Here’s why:

They have a good thing going with Google

Verizon and Google are BFFs and there’s a good reason — Google-powered phones are selling great.  Verizon hit a big home run with Motorola’s Droid and they’ve continued their streak with the HTC Incredible and the Droid X.  The Droid 2 will be another hit.  And they’re even drafting policy together — Verizon and Google just announced their not-quite-net-neutrality policy recommendations.  They like each other.  Like like.  Verizon isn’t going to cheat on its sweetheart.

Android is now the leader

Thanks largely to Verizon, Android is now the leader of the smartphone market.  Sure, the iPhone still sells well, but Android-powered phones are selling at a rate of 200,000 a DAY.  That’s a lot of Google phones.  And they have all the good buzz.  Apple, as a company, is freaking people out — the Gizmodo thing, the response to the iPhone 4 antenna issues, the App Store rules — nobody understands them.  By positioning itself as the opposite of Apple, Google is building a huge audience.  Google knows it can win against Apple in the mobile OS market — just like Windows beat out Apple for control of the PC OS market.  Hell, Mark Zuckerberg just switched.  He’s the face of the future, not Steve Jobs.

Verizon doesn’t want THOSE customers

If Verizon were to carry the iPhone, the first to switch over would be the loudest, whiniest, most demanding, most hard to please customers.  Verizon shouldn’t want them as customers.  The ideal customer is somebody that’s willing to pay a lot but expects a little.  Sure, the AT&T abandoners will be willing to pay a premium, but they’ll be resource hogs and data addicts.  Verizon should go after other customers.

Carrying the iPhone will help AT&T

The customers most likely to jump-ship and switch to Verizon are likely the customers causing AT&T the most harm.  It’s in Verizon’s best interest to have these customers continue to harm their competitor.  If they steal these customers, it’ll help AT&T by reducing the strain on AT&T’s network.  It’s better for Verizon to confound these customers with a Sprint/T-Mobile decision.  The grass is definitely greener with Verizon, but will these customers jump to Sprint or T-Mobile?  Maybe not.  Verizon should gamble on this and allow AT&T to continue to struggle with the iPhone.  The iPhone is a noose around AT&T’s neck and Verizon shouldn’t loosen the knot by carrying the iPhone too.

Perpetuating the Verizon myth is good marketing

As long as AT&T struggles and Sprint and T-Mobile are smaller, the Verizon pastures will continue to have an allure.  This myth is great marketing, and an influx of iPhone subscribers could hurt the myth.  Better to perpetuate it longer while other networks continue to hurt.

So my money is on a Verizon snub.  They shouldn’t want the iPhone.  They were smart to pair up with Google and the Apple-AT&T deal will likely be a long-term failure.  AT&T and Apple have had a good run, but Verizon is still king of the networks and Google will soon be the undisputed king of the mobile OS market.  And it’ll be easier for Verizon to stay king by continuing to favor Google and by ignoring the iPhone.