Verizon Attacks the iPhone, Hints at Upcoming Droid

motorola droidIn one of the boldest attacks on Apple’s iPhone so far, Verizon unveiled a TV commercial and website over the weekend that touted Droid, a new smartphone from Motorola, as a device that does everything the iPhone doesn’t.

Verizon’s “iDon’t” TV commercial and website (warning: Flash-centric site) displays a series of statements aimed directly at the iPhone, such as ‘iDon’t have a real keyboard, iDon’t customize, iDon’t allow open development,” but without naming the iPhone directly. (You can watch the Droid ad on YouTube, or scroll down to see the video here.)

The ad took industry watchers and analysts by surprise.

“It is very unusual in advertising to spend most of your time talking about your rivals,” says Tero Kuittinen, a senior analyst at MKM Partners. “The downside is that people will do exactly what Verizon has advised them to, which is to make direct comparisons between the Droid and iPhone.”

But, he added, “that may not always work out in Droid’s favor.”

The Droid, formerly codenamed ‘Sholes’ and also referred to at times with the codename ‘Tao,’ is an upcoming Android-based smartphone from Motorola. Droid is expected to have a 3.7-inch screen, a 5-megapixel camera, GPS, Wi-Fi, and access to the Android app market. It will also be the first phone to use the Android 2.0 operating system, aka “Eclair.”

It’s Motorola’s second Android-based phone. Last month, the company launched Cliq, its first Android phone on T-Mobile’s network. Droid will be Verizon’s first Android device and is expected to be available at the end of next month.

Verizon’s ad campaign for the Droid is the first official mention of the phone on the company’s network. But the carrier’s move to criticize the iPhone so openly and so early has left industry watchers such as Chandan Sarkar, an analyst with Auriga, a New York-based research and trading firm, puzzled.

“Given the tone of the commercials, it might risk upsetting Apple,” Sarkar says.

Verizon could also risk disappointing consumers later with the Droid because of the high expectations that it has set.

Sarkar says that it is clear that Verizon is betting on the Android OS as a way to fight Apple’s rise in the smartphone market.

“The question for Verizon is not whether Droid will be worth it, but whether Android will be worth it,” Sarkar says. “Verizon doesn’t have to hit a home run in the first wave but they want to establish a strong beachhead against Apple.”

Droid won’t be a run-of-the-mill Android phone, the two analysts interviewed by Wired.com say. Verizon has worked closely with Google and Motorola to develop the device, Sarkar says. Verizon may also be working with Google to develop applications for its LTE network (also known as 4G), he says.

Verizon might risk damaging its relationship with Apple. Though AT&T has a five-year exclusive contract, starting June 2007, to offer the iPhone in the U.S., Verizon has been seen as trying to get the device on its network. Apple also is reportedly working on a tablet that it might launch in partnership with a telecom carrier. Verizon is one of the contenders for that device.

“Verizon wants to send a message that they are not desperate for the iPhone and they have alternatives to the iPhone,” Kuittinen says. “But this kind of in-your-face attack is more than what anyone, including Apple, may have expected.”

See Also:

Photo: Leaked pic of the Motorola Droid/Boy Genius Report


No Responses to “Verizon Attacks the iPhone, Hints at Upcoming Droid”

Post a Comment