Verizon (NYSE: VZ) and Apple (NASDAQ: AAPL) recently announced a new program to encourage mass adoption of 5G and the phones that can connect to it – specifically, Verizon’s recently launched 5G network nationwide and the 5G-ready iPhone 12. The fates of Verizon and Apple in the 5G race, in particular, the new program could be a big deal.
A 5G value proposition for businesses
The new program, dubbed “5G Fleet Swap”, is aimed at large organizations that use a mobile network in their operations. The specifics are pretty straightforward: for companies that operate a “fleet” of employee smartphones, a free initial trade-in on all phones for the all-new iPhone 12 is now available. Offer is valid for businesses switching from another network operator, as well as existing Verizon customers.
The rationale is pretty obvious to Verizon. Until it finally launched its national 5G network (monitoring national deployments at T Mobile and AT&T), its goal in the 5G race was aimed at enterprises and fueled the “digital transformation” with its new lightning-fast, low-latency but limited-range service. Obviously, large accounts are always the focus. In fact, alongside the joint announcement with Apple, Verizon also said that 5G had been installed inside General Motors“New Factory ZERO all-electric vehicle assembly plant. Honeywell also brought in Verizon for 5G at its new headquarters in Charlotte.
In addition to driving growth in the number of net new subscribers for Verizon, “5G Fleet Swap” could also be great news for Apple. It has been well telegraphed that iPhone revenues have mostly stagnated for the past few years. Apple is making hay from its service segment anyway, but 5G represents an opportunity to squeeze some expansion from its flagship device. Getting a handful of big companies to adopt the iPhone 12 on all employee phones might do the trick.
This could be big news for enterprise software provider Apple Jamf (NASDAQ: JAMF), too – assuming a number of companies embrace Verizon and Apple in their offering. More Apple devices for business use are Jamf’s main thesis, so this is also worth mentioning after the announcement of Verizon’s first takeover.