Verizon Wireless Focuses On Network Performance In Lieu Of Having Snazzy Smartphone Line-Up

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Verizon Wireless Focuses On Network Performance In Lieu Of Having Snazzy Smartphone Line-Up

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Verizon Wireless (NYSE: VZ) has drawn the short straw when it comes to smartphones.

AT&T (NYSE: T) continues to be the only U.S. carrier to sell the iPhone. Third-place Sprint (NYSE: S) is selling the Palm (NSDQ: PALM) Pre exclusively, and T-Mobile USA is close to launching its third Android phone. So, what’s Verizon’s flagship handset? An article in Wired magazine asks: “Why does the U.S. carrier known for the best network have the worst smartphones?”

Playing off the network problems that AT&T has faced from selling the iPhone, Verizon spokesperson Brenda Raney said they would rather focus on the network than on the devices, “It isn’t so much about the device as it is about the delivery. We have the nation’s largest 3G network so when we offer devices on our network, customers can be assured that they will deliver as promised.”

So, what is Verizon doing about it? To be sure, the carrier is not standing still. It has a close relationship with RIM’s BlackBerry. It was the first to offer the BlackBerry Storm (although it had a rocky start), and it has been offering a popular buy one, get one free deal for awhile now.

In fact, that’s where it seems to be focusing—on price. For instance, Verizon is selling the HTC Touch Pro 2 phone, a hefty smartphone running Windows Mobile, for $200, whereas Sprint and T-Mobile are charging $350. In addition, most of its handsets have been marked down to below $100. That’s likely a ploy to reduce inventory before getting a new holiday shipments, which analysts believe could include the BlackBerry Storm 2 or maybe the Palm Pre once its been freed from Sprint’s exclusivity.

So far, Verizon’s weak smartphone portfolio has yet to impact the largest U.S. carrier. It has roughly 87 million subscribers and added 1.1 million net subscribers in Q2, compared to AT&T, which added 1.4 million net subscribers. Raney told Wired: “We have a very robust portfolio of smartphones and will continue to add more in coming months…We feel we will remain competitive.”

By Tricia Duryee