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The 1 Thing to Know About Apple and Verizon

By Fool TV – Updated Apr 6, 2017 at 12:51PM

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In this video, Fool.com analyst Eric Bleeker looks at the reports from "well-placed" sources, maybe even from Verizon (NYSE: VZ), that Apple's (Nasdaq: AAPL) iPhone is cruising over to Big Red next January. First, a point of caution: There have been a ton of reports around this story previously. So as an Apple investor, don't count your chickens before they hatch.

However, the important thing to remember when this deal is actually signed isn't the guessing games over how many iPhones will be sold next year. Bleeker says he has already seen numbers close to an additional 3 million iPhones moved a quarter, which would be huge. Yet, in the long run, that's not the most important aspect of this deal.

The important idea to keep in mind is that smartphones are platforms. Once you have users who bought your phone once, they download apps, they start using media software like iTunes, they get used to the user interface. Simply put, winning converts now gives a platform the advantage in a trend -- smartphones -- that's absolutely massive.

So, while everyone might be counting the potential ramifications next year, look to the strategic long-term implications. Apple can't wait to join Verizon because it needs to prevent Google's (Nasdaq: GOOG) Android from accelerating the user base around its platform, where they're more likely to remain once they've bought their first Android device.

Apple should see some short-term gains here, but the long-term implications are massive. They've been successful launching to multiple carriers in other countries, and it was essential they do it here. Speaking for Apple shareholders, Bleeker really hopes, this time, that the Apple and Verizon reports are more than hot air.

To see his full thoughts on an Apple and Verizon tie-up, view the video below:

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Eric Bleeker owns shares of no companies listed above. Google is a Motley Fool Rule Breakers selection. Apple is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Google. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$39.52 (-1.03%) $0.41
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$98.74 (-1.40%) $-1.40

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