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Verizon vs. AT&T War. Ray McGuinness Ina Kang. The Past. Apple and AT&T partnered to release the iPhone in 2007 – 73.5 million sold in 4 years Originally a two year exclusive deal, extended to four in 2009. Verizon now releasing iPhone 4 .
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Verizon vs. AT&T War Ray McGuinness Ina Kang
The Past • Apple and AT&T partnered to release the iPhone in 2007 – 73.5 million sold in 4 years • Originally a two year exclusive deal, extended to four in 2009. • Verizon now releasing iPhone 4
Verizon’s History of Apple Bashing • Has attacked AT&T coverage for the past few years. • Partnered with Droid –bash iPhone. • AT&T sued Verizon in November 2009 citing loss of “incalculable market share.” • AT&T press release defends image.
AT&T Response • “Typically don’t respond but…” • Some new positioning in business markets • Also, new funny commercials change image. • Still slightly attacking…
Results • Verizon has gotten over 100,000 orders already • According to one survey, 54% of Verizon's Android and Blackberry users said they planned on switching to the iPhone. • Apple taking advantage of both.
Relation to Class • Competitive Rational Appeals • Gone too far? • Transformational Ads • Ads create feelings/beliefs/etc… • Television advertising = expensive!
Sources Mandell, Nina. "Verizon, AT&T Start Ad War after Sales of IPhone on Its New Network Skyrocket." New York News, Traffic, Sports, Weather, Photos, Entertainment, and Gossip - NY Daily News. Web. 05 Feb. 2011. http://www.nydailynews.com/news/national/2011/02/05/2011-02-05_verizon_att_start_ad_war_after_sales_of_iphone_on_its_new_network_skyrocket.html Raphael, Jr. "AT&T's Verizon Ad Battle: Who's Being Hurt Worse? - PCWorld." Reviews and News on Tech Products, Software and Downloads - PCWorld. Web. 05 Feb. 2011. <http://www.pcworld.com/article/182185/atandts_verizon_ad_battle_whos_being_hurt_worse.html>.