iPhone 4 Sellout Puts Demand Question to Rest

Until yesterday we only had speculation and survey date to fuel estimates of the demand for the iPhone 4 at Verizon (and its potential impact on Android). Now we know that the demand is real and the impact on Android (read Motorola) and RIM (in particular) is likely to be very real. 

Verizon said early this morning that the online pre-ordering of the iPhone represented, "the most successful first day sales in the history of the company." According to the press release it took only two hours to sell out:

In just our first two hours, we had already sold more phones than any first day launch in our history. And, when you consider these initial orders were placed between the hours of 3 a.m. and 5 a.m., it is an incredible success story.

There are several surveys that suggest that existing Android and RIM users at Verizon will switch in potentially large numbers. One of these (n=700 smartphone users) found

54 percent of respondents who have an Android or BlackBerry smartphone on Verizon are either very likely (25 percent) or somewhat likely (29 percent) to purchase the Verizon iPhone when it arrives next week.

Furthermore Verizon is now spending money on iPhone ads, which has the double benefit of enhancing the iPhone brand in the market and minimizing or eliminating pro-Android/anti-iPhone ads: 

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