Today’s Verizon iPhone announcement came as no surprise. Even though their CDMA network is aging (and will be superceded by LTE), and Apple famously doesn’t invest in dying technology, there were strong business motivations for creating a CDMA-compatible iPhone. Android has come on strong and taken a market leading position – probably catching Apple off-guard.
Horace Dediu of Asymco makes an astute observation, pointing out that CDMA represents about 16% of the world’s mobile market, or about 543 million subscribers. Verizon accounts for about 90 million of those subscribers, or about 1/6th of the CDMA market. If we assume 10% of the 543 million switch to the iPhone — this would mean 54 million new subscribers, not too shabby considering there have been just over 70 million iPhones sold in total over the past 3.5 years. Shrewd business move.
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