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The two companies hosted an event on Thursday to showcase several ways businesses could benefit from using iPhone 12 with 5G. 5G has higher bandwidth than existing networks, making it possible to have many more wireless devices doing data-intensive activities, like video streaming, in a small area like a workshop.
The companies also announced an aggressive cut for companies that swap their entire “fleet” of mobile devices and switch to the iPhone 12 on Verizon (VZ) 5G, waiving all upfront fees and charging no monthly fees for iPhone 12 minis.
The announcement highlights the importance of B2B sales for device manufacturers and network operators. Apple’s event in October that unveiled the iPhone 12 had a heavy focus on consumer apps.
“It simplifies things, it makes it easier, it enables businesses to accelerate their transformation affordably with the power of Verizon’s 5G and Apple device,” said Tami Erwin, CEO of Verizon Business, in an interview ahead of Thursday’s event.
For Apple (AAPL), the partnership could give a boost to the corporate side of its operations – an area of growth for the company in recent years. IPhone features such as its “Secure Enclave” security system may have particular appeal to businesses looking to protect critical data.
“With the iPhone, we set out to rethink how mobile can improve people’s lives, including at work,” Susan Prescott, Apple’s vice president of markets, applications and services, told CNN Business in a press release. “We have added business functionality to every major release of the software. Today, virtually every Fortune 500 company uses iPhone, iPad, and Mac, and business momentum is growing.
Apple doesn’t divide corporate sales – the latest reported revenue for the company was $ 25 billion in 2015. Wedbush analyst Dan Ives estimates corporate iPhone sales are currently around $ 4 billion. % to 5% of total iPhone sales, which is roughly $ 5.5-6.9 billion per year.
Strong iPhone 12 sales to corporate customers could also help Apple for a year where individual consumers might be reluctant to upgrade in the middle the economic downturn and the limited consumer uses of 5G currently available.
On Thursday, the two companies showed how iPhones can be used in a workplace with 5G infrastructure. For example, an iPhone 12 can be positioned with its camera monitoring a production line in a factory. Using a IBM (IBM) app called Maximo Visual Inspection, the iPhone 12 can automatically detect if there is a defect with a product on the line.
Verizon and Apple are betting that putting more 5G devices in the hands of businesses will further inspire developers to create apps that use new network technology and potentially lead to even wider adoption.
“What we love about it is that you are creating an ecosystem, and they will build and they will innovate and they will accelerate the pace of transformation,” Erwin said.
For Verizon, the partnership also offers the possibility of convincing potentially lucrative companies for its 5G network.
The major wireless carriers have spent tens of billions of dollars to build their 5G networks and the competition is intensifying to gain market share. Many expect commercial use of 5G to generate more additional revenue than mainstream applications.
Verizon on Thursday announced several 5G options for businesses in addition to relying only on the public network. Businesses can also install private and indoor 5G networks, which can offer greater functionality – given how 5G technology works – as well as increased security.
Honeywell (SHE) and General Motors (GM) are working with Verizon to create 5G networks at their facilities, Verizon said. GM installs the technology in its “Factory Zero” at the Detroit-Hamtramck assembly center, where he builds electric vehicles.
“If I think about 5G and what we’ve been doing over the past 18 months, we’ve quickly gone from a PowerPoint concept to a true proof of concept to, now, commercial availability,” Erwin said.
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