From 24% share in 2005 to 32% in 2008 – can Verizon continue to gain more market share?

+3.94%
Upside
17.60
Market
18.29
Trefis
T: AT&T logo
T
AT&T

In a previous note we had mentioned the potential positive impact of the Google Android phone on Sprint.  Verizon recently announced that it will be introducing two phones that run on Google Android as well.  It’s rumored that the phones are the Hero smartphone, made by Taiwan-based mobile phone maker HTC, and Motorola’s Cliq.  After giving up the iPhone to AT&T, the Palm Pre to Sprint and being reluctant to adopt Android, this development reveals that Verizon is recognizing the importance of a strong smartphone product portfolio for attracting customers.

The introduction of Google Android phones on Verizon’s network so soon after Sprint touted its own offering means that Sprint will once again need to search for more product advantages that it can use to lure away subscribers from Verizon and AT&T.  Sprint continues to be focused on reversing subscriber losses with offerings like Android-based phones and the Palm Pre.

Verizon’s market share of US mobile phone subscribers has increased from 24% in 2005 to about 32% today due in part to its acquisition of Alltel.  Customer retention and growth has been buoyed by the perception that Verizon’s mobile network is one of the best.  The company has missed out on some highly popular smartphones like the iPhone and Palm Pre but nevertheless is able to attract customers with a wide range of phones.

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The mobile phone business constitutes about 48% of Verizon’s stock.  We believe that Verizon will continue to be able to increase share up to 36% by the end of the Trefis forecast period.  Within Verizon’s content on our site, you can see the impact on Verizon’s stock if the company’s mobile phone market share were to remain flat instead.