It’s bad enough for Verizon that they keep losing customers to AT&T because of the iPhone, but the iPod Touch must also be an increasingly huge thorn in their side.  Verizon is trying to get its customers to trade up to smartphones and data plans, but for the millions of Verizon users who have an iPod Touch, many, if not most, are quite content to keep using their old Verizon phone for calls and the iPod Touch for everything else.  Having an iPod Touch makes it palatable for Verizon users to wait another year to see if Verizon gets the iPhone.

Its rather incredible to think about it, but all those millions of iPod Touches are being carried around by people who also carry around phones, except for young kids.  As for the kids with iPod Touches and without cell phones, each year hundreds of thousands will be old enough to get their first cell phone.  Most of them will want an iPhone, and some of them will get the whole family to switch to AT&T to get it. 

Until there is an Android competitor to the iPod Touch with more marketshare and mindshare than Archos, the wireless Telcos that don’t have the iPhone are suffering a one-two punch by the iPhone and the iPod Touch.

macorange - 25 November 2009 04:04 AM

It’s bad enough for Verizon that they keep losing customers to AT&T because of the iPhone, but the iPod Touch must also be an increasingly huge thorn in their side.  Verizon is trying to get its customers to trade up to smartphones and data plans, but for the millions of Verizon users who have an iPod Touch, many, if not most, are quite content to keep using their old Verizon phone for calls and the iPod Touch for everything else.  Having an iPod Touch makes it palatable for Verizon users to wait another year to see if Verizon gets the iPhone.

Its rather incredible to think about it, but all those millions of iPod Touches are being carried around by people who also carry around phones, except for young kids.  As for the kids with iPod Touches and without cell phones, each year hundreds of thousands will be old enough to get their first cell phone.  Most of them will want an iPhone, and some of them will get the whole family to switch to AT&T to get it. 

Until there is an Android competitor to the iPod Touch with more marketshare and mindshare than Archos, the wireless Telcos that don’t have the iPhone are suffering a one-two punch by the iPhone and the iPod Touch.

Sucks to be them.  They not only have to develop a competitor for the touch but one for the iTunes jukebox…,and one for the iTunes music store…,and one for the iTunes App store.  Even if they manage to put all of that in place, they have to convince an entire generation to switch.  These aren’t folks that have been disgusted with Microsoft forever.  These are iPod users with some of the best consumer satisfaction numbers ever seen.  Good luck with that!

Google will have a Touch competitor soon, with their own “Google Phone” without needing a cell provider.  That is what an iPod Touch is with Skype installed.

—on a side note, why is this labelled a hot topic on the main page?

*raises hand* Oh, I’m one of those people carrying around a regular VZW cell phone and an iPod touch. The majority of the time I’m either in front of a computer, connected to WiFi with my iPod touch, or both. So I don’t really have a need to get a smart phone and pay another $30 (minimum) for a data plan I won’t even use that much. I would get the Droid, but I don’t want a data plan. I’m staying with VZW because I get great signal, but I’m also sticking with my iPod touch.

macorange - 25 November 2009 04:04 AM

Until there is an Android competitor to the iPod Touch with more marketshare and mindshare than Archos, the wireless Telcos that don’t have the iPhone are suffering a one-two punch by the iPhone and the iPod Touch.

Creative Zii will run Android. The Zii Egg is available now with a developer kit for $399. Creative appears ready to make it available as ODM or OEM next year in various configurations. The solution to Verizon’s iPod Touch problem may very well be a Verizon Zii with free access to a network of WiFi spots. The Zii has HDMI out and adequate processing power to drive it.

Zii is not a threat to iPod Touch today, but they are doing everything right and enabling themselves to line up lots of partners and hit attractive price points. And they’ve got a huge chip on their shoulder from losing their early lead in the MP3 market to Apple.

As a Verizon customer and an owner of an iPod Touch, I definitely agree with you. It’s annoying thave to carry two devices around, but I only have a Verizon phone because of the discount I get through my employer, and it’s the cheapest plan they offer. Data plans have no interest for me due to the cost. I’m hoping my next phone will be an iPhone, assuming they have plans that are cheaper or have a no-data version so I can keep the cost down (while convenient, the data plans offer no enticement for me to make up for the huge increase in price.) So yeah, while inconvenient, I would never ditch my two devices for one crap smart phone from Verizon; I would only do it for an iPhone.

I’m with AT&T and have been considering getting an iPod Touch with Skype for a while now. I pay $45-50 a month, have to pay extra for text messages and have no data plan. Other services aren’t that much different in price. Going VOIP would save me $30-35 a month and is probably a good idea since I’m rarely out of wifi range and often just answer phone messages anyway…  The Touch and Skype (among others) are a thorn for many providers, not just Verizon, at least for a certain number of potential phone customers.

I’d been aware of this option, but not sure of the viability. Sounds like I can drop my $150/month to Verizon down to $40 or $50, throw my Treo in the lake, get a tiny phone and an iPod Touch and be in business. No more old technology, no more waiting for empty rumors, no more debating longer-term viability of Android, no more toying with switching back to AT&T.
I can keep my options open, my contract as-is (i.e. none), and see where the market heads.
What’s left to decide?

They may compete with a phone, and they may compete with a media player, but until they do it better and cheaper than Apple they will keep competing and Apple will continue winning.

Bosco - 25 November 2009 12:23 PM

Creative Zii will run Android. The Zii Egg is available now with a developer kit for $399….Zii is not a threat to iPod Touch today, but they are doing everything right and enabling themselves to line up lots of partners and hit attractive price points. And they’ve got a huge chip on their shoulder from losing their early lead in the MP3 market to Apple.

No doubt. On the other hand, I figure this will work out as well for Creative as the last “war” it declared on Apple:

http://www.engadget.com/2004/11/17/creative-declares-war-on-apple/

Ditto. The data plan has to be cheaper to draw me in. $30/month x 2 year contract = $720. Ouch. I’ll be happy with the Touch until then.

I think Verizon will be a world of hurt if the iPhone 4GS or whatever it will be called is announced in June 2010 as AT&T only.

All those people who had been waiting to see if Verizon will get an iPhone might not want to wait until June 2011.  For those waiting for a Verizon iPhone, would you wait yet one more year?

I am in the category of having an iPod Touch and a Verizon phone.  Mainly due to AT&T not having service in the south half and part of the north half of the county that I live in. 

The iPhone would be ideal for me.  I get pictures of homes and get their gps location.  My scheduling is all keep up with on my iPod, along with my notes, pdf files, and other apps.  So that is actually carrying around 4 items, gps, camera, phone, and iPod.

I see where there are some add on gps’s coming out for the iPod touch, so that will help.

Looking forward to Verizon coming out with a CDMA version of the iPhone.  I personally do not need to talk and access the web at the same time.

Or, AT&T updating coverage in my area, then I would make the switch.

George.

I’m a Verizon customer (long time) and also have a Touch.  I tried the Storm and had so many issues I returned it and went back to my LG8300 “dumb” phone.  then I tried the Storm2 and had issues that caused me to return it also.  Since I have a MiFi unit, I get the best of both worlds—a great browser in the Touch, along with the reliability of my LG.  I won’t get any kind of smartphone until they make one that doesn’t require rebooting constantly to keep it functional.  In my case, Verizon wins, because my MiFi monthly expense is identical to the cost of 2 smartphone plans.  But the MiFi is so much more useful than just a smart phone.  We can hook up our netbooks or other computers we own, to the MiFi, when on vacation or when our home network or Comcast internet goes down.  MiFi is pricey but awesome!

BTW, I will NEVER, EVER get an iPhone if that means switching to AT&T.  They SUCK.  Verizon’s coverage is excellent, so I am not about to switch carriers just for a phone.

dave1812 - 25 November 2009 09:33 PM

...  Since I have a MiFi unit, I get the best of both worlds—a great browser in the Touch, along with the reliability of my LG.  ...  In my case, Verizon wins, because my MiFi monthly expense is identical to the cost of 2 smartphone plans.  But the MiFi is so much more useful than just a smart phone.  We can hook up our netbooks or other computers we own, to the MiFi, when on vacation or when our home network or Comcast internet goes down.  MiFi is pricey but awesome!....

I had never considered the use of a MiFi and touch.  That is pretty smart.  You could even use a VoIP app with your Touch and cut down on your minutes plan.  Thanks for the clever Verizon hack.

XSemper Idem5 - 25 November 2009 12:12 PM

*raises hand* Oh, I’m one of those people carrying around a regular VZW cell phone and an iPod touch. The majority of the time I’m either in front of a computer, connected to WiFi with my iPod touch, or both. So I don’t really have a need to get a smart phone and pay another $30 (minimum) for a data plan I won’t even use that much. I would get the Droid, but I don’t want a data plan. I’m staying with VZW because I get great signal, but I’m also sticking with my iPod touch.

ditto.