Verizon CEO Unruffled by iPhone - Barron's

Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

Verizon: Game Day Is Here by Mark Veverka

Summary: "What does Verizon Communication's CEO, Ivan Seidenberg, really think of the Apple (AAPL) iPhone?" asks Plugged In editor Mark Veverka. At a news conference last week, Seidenberg had nothing but praise (perhaps his tone was a tad disingenuous) for the much-awaited gadget, although it will be serviced exclusively by competitor AT&T (T): "I am actually hoping that the Apple iPhone will do reasonably well," he said, because its emphasis on music, video and internet could 'energize' the sector. Eventually, though, Seidenberg conceded he thinks "the burden is on them" to prove they can redefine the market before Verizon (VZ) considers taking any drastic steps: "We think that we're the premier wireless carrier." Verizon's just-launched V Cast mobile video (based on Qualcomm's (QCOM) MediaFlo) hits 40 cities in July and 120 by year-end. Its Chocolate multimedia phones (made by LG Electronics) are scheduled to get a 'refreshed design' next month. "In the meantime, the Verizon CEO seems to think it's time for AT&T and Apple to stop the pre-game chatter and prove what they can do on the field. Says Seidenberg: 'You've got to buy your ticket and show up for the game.'"

Related Links: Verizon Delusional On iPhone Impact • Verizon May Counter iPhone With LG Prada • Qualcomm: Positive Catalysts Ahead

Earnings call transcripts: AT&T Q1 2007 • Verizon Q1 2007 • Apple F2Q07 • QUALCOMM F2Q07

Comments

[bradah:]

Maybe he didn't like that Apple wanted a closed system with more built-in security.

www.foxnews.com/story/...

2007 Jun 24 02:14 PM

[Ralph F:]

The Chocolate has horrible usability. He's in defense mode.

2007 Jun 24 05:01 PM

[Tom B:]

When Verizon is bought by ATT and Seidenberg is off to wreck a different company (these guys always turn up somewhere else), we'll see how confident he is.

2007 Jun 25 08:34 AM

[Georgie:]

I think Seidenberg is right. Working in the wireless sector, I know that phones are not as simple as a IPOD. Much complex and the burden will be on Apple to prove the Iphone with ATT's GSM's low speed EDGE technology. In my opinion, ATT is not going to make too much money of this deal. Time will tell.

2007 Jun 25 11:50 AM