Apple's iPhone predicted to find home at T-Mobile U.S. in 2010

Posted:
in iPhone edited January 2014
While rumors of a possible Verizon-compatible iPhone in 2010 persist, one analyst has predicted that Apple will instead bring the iPhone to another GSM-based carrier in the U.S.: T-Mobile.



In a note to investors released this week, Doug Reid of Thomas Weisel Partners said his firm believes that T-Mobile, and not Verizon, will be the beneficiary when Apple's exclusive agreement with AT&T expires next year. AT&T has likely realized this, he said, and has changed its advertising focus accordingly to be less focused on the iPhone.



"AT&T advertising in the United States has in recent weeks clearly shifted away from iPhone as the carrier likely readies itself to lose exclusivity in the United States (to T-Mobile and not to VZ, we believe) while VZ ads promoting Droid and other anti-iPhone devices appear to have intensified markedly," Reid said.



AT&T's exclusive contract with Apple for the iPhone is due to expire in 2010. While earlier this year there were reports that the wireless carrier was pushing to extend the agreement through 2011, those rumors have since cooled.



While the iPhone in its current iteration is compatible with T-Mobile's network, it is not capable of connecting to its high-speed 3G network, which operates on a unique 1700MHz spectrum. The iPhone is currently compatible with UMTS/HSDPA 3G connections at the frequencies 850MHz, 1900MHz and 2100MHz. It would be necessary, therefore, for Apple to build a new hardware model that supports T-Mobile's 3G frequency.



Those changes, though, are relatively minor compared to what would be necessary to make the iPhone compatible with Verizon's CDMA network -- a technology that, unlike the GSM network of AT&T and T-Mobile, is not widely used abroad. Recent rumors have suggested Apple could enter a deal with chip maker Qualcomm. While Qualcomm plans to have a dual-mode chip that would allow connection to both AT&T and Verizon available in 2010, some have said the new chip would be too cost prohibitive for Apple to adopt so soon.



AT&T's advertisements featuring actor Luke Wilson have focused on coverage area and network performance, rather than handsets. Apple recently, however, did join the discussion with a pair of ads that highlight the ability of the iPhone to handle calls and data at the same time -- a capability available on AT&T's network, but not from competitor Verizon.



Thomas Weisel Partners have set a price target of $245 for AAPL stock. They expect that 8.2 million iPhones will be sold in the December quarter, along with 20.45 million iPods and 3.06 million Macs. If those numbers prove accurate, it would top Apple's September 2009 quarter -- its best ever -- when the company sold 3 million Macs and 7.4 million iPhones to earn $1.67 billion in profit.
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Comments

  • oc4theooc4theo Posts: 294member
    It makes sense that Apple will choose TMobile instead of Verizon. Verizon is anti-iPhone since day one. Every time Verizon debuts a new touch screen phone, it is featured as iPhone-killer. These latest ads about Droid has made it clear that Verizon hates iPhone, which is understandable.



    Why then would Apple stoop to Verizon? TMobile makes more sense.
  • adisor19adisor19 Posts: 35member
    Yep, i can see this happening. Adding 1700Mhz HSPA support is nothing compared to adding CDMA compatibiity to it. The chances are VERY high that the next iPhone will have sport the 1700Mhz since the frequecy is also used in Japan and Canada (Wind mobile and Videotron).



    Adi
  • w00masterw00master Posts: 99member
    Quote:
    Originally Posted by OC4Theo View Post


    It makes sense that Apple will choose TMobile instead of Verizon. Verizon is anti-iPhone since day one. Every time Verizon debuts a new touch screen phone, it is featured as iPhone-killer. These latest ads about Droid has made it clear that Verizon hates iPhone, which is understandable.



    Why then would Apple stoop to Verizon? TMobile makes more sense.



    It's called competition. They're both doing it. It isn't about one party "stooping" to another. Let me ask you, if you were in VZ's shoes... wouldn't you (while you didn't have the iPhone) want to promote YOUR phones against AT&T?



    If Apple and VZ want the iPhone, then it will happen. All of this stuff that's happenin' in terms of marketing & advertising? That's exactly what that is... marketing and advertising. Quit letting it get to you, it makes you look insecure.



    w00master
  • rot'napplerot'napple Posts: 1,839member
    Since I have T-Mobile and am happy with their service, please be true! Pretty please.
  • dogcowdogcow Posts: 713member
    Woah an analyst that makes sense! Who would have thought?



    Everyone has been drinking the Verizon/iPhone koolaid, but nothing about that ever made any sense. T-Mobile is a logical choice and would be best for consumers and apple. It would mean very little (if any change) to the iPhone hardware itself and allow for some (hopefully aggressive) price competition.



    Verizon isn't happening people, at least not in the next 2 years. Get over it.
  • iansilviansilv Posts: 283member
    Yes! Please! Finally some competition- in some form or another!
  • solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by AppleInsider View Post


    It would be necessary, therefore, for Apple to build a new hardware model that supports T-Mobile's 3G frequency.



    I think this line may be confusing. Since Apple will have a new model next summer Apple has only to include the additional HW radio for that spectrum. I think many would read it that Apple would have to have a separate IPhone model in each capacity for each network.



    The X-GOLD 616 and 618 both allow for up to 5 distinct HSPA spectrums. I’d wager one of these will be in the next iPhone…
    Quote:

    Qualcomm plans to have a dual-mode chip that would allow connection to both AT&T and Verizon available in 2010, some have said the new chip would be too cost prohibitive for Apple to adopt so soon.



    I can’t imagine it being as small and power efficient as the GSM/3GSM chip currently used.





    Quote:
    Originally Posted by adisor19 View Post


    Yep, i can see this happening. Adding 1700Mhz HSPA support is nothing compared to adding CDMA compatibiity to it. The chances are VERY high that the next iPhone will have sport the 1700Mhz since the frequecy is also used in Japan and Canada (Wind mobile and Videotron).



    It does seems like the only viable option for Apple. They can still produce and stock one device for the US market without increasing their R&D and component costs much. They can get in with a carrier that they have a relationship with (Deutsche Telekom). T-Mobile has a solid following that prefer their network despite lower 3G coverage. But most of all from a business standpoint, they are the last carrier by size in the US and really need a killer device and are likely willing to give Apple what they want to get it.





    Quote:
    Originally Posted by w00master View Post


    It's called competition. They're both doing it. It isn't about one party "stooping" to another. Let me ask you, if you were in VZ's shoes... wouldn't you (while you didn't have the iPhone) want to promote YOUR phones against AT&T?



    If Apple and VZ want the iPhone, then it will happen. All of this stuff that's happenin' in terms of marketing & advertising? That's exactly what that is... marketing and advertising. Quit letting it get to you, it makes you look insecure.



    He has a point. I can’t see Apple going with Verizon after directly attacking the iPhone. Have you ever heard of a carrier directly making ads that attack the mobile vendor’s product before? I haven’t.I am pretty sure that Verizon knew they had no chance of getting it at the time when they made that ad. In future, things can change, but for now it’s seems impossible.
  • t^3t^3 Posts: 3member
    Well, Apple was bashing Intel chips for years before using them, so I still wouldn't rule out Verizon.
  • rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by w00master View Post


    It's called competition. They're both doing it. It isn't about one party "stooping" to another. Let me ask you, if you were in VZ's shoes... wouldn't you (while you didn't have the iPhone) want to promote YOUR phones against AT&T? w00master



    I think jealousy and envious are better descriptive terms of Verizon when it comes to Apple's iPhone and AT&T.



    I only say this, because before the iPhone, the "smart phones" that were out there by RIM, PALM and whoever, were never touted in the way they are now and compared to the iPhone. Verizon's "iDon't" commercials talking up the Droid never existed when a PALM phone "benefits" were compared to a RIM BlackBerry.



    Unless I am wrong and someone can jog my memory by describing a smart phone tv commercial before the iPhone ever hit the market.
  • teckstudteckstud Posts: 6,476member
    Yuck- T- Mobile's map is even less full than AT&T's?

    Do they still use Catherine Zeta Jones at least?
  • kangamojokangamojo Posts: 10member
    My money says that Apple buys T-Mobile and releases the tablet together. Pour a couple of billion into upgrading the network directly to 4G. It ties the macosphere together and there a few gajillion iPhone users who would switch instantly when their ATT contract ends.
  • iansilviansilv Posts: 283member
    An you talk and surf the web at the same time on tmobile's network?
  • teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by Rot'nApple View Post


    I think jealousy and envious are better descriptive terms of Verizon when it comes to Apple's iPhone and AT&T.



    I only say this, because before the iPhone, the "smart phones" that were out there by RIM, PALM and whoever, were never touted in the way they are now and compared to the iPhone. Verizon's "iDon't" commercials talking up the Droid never existed when a PALM phone "benefits" were compared to a RIM BlackBerry.



    Unless I am wrong and someone can jog my memory by describing a smart phone tv commercial before the iPhone ever hit the market.



    Blackberry owned the market - why would there need to be a commercial?

    Anyway Verizon and Droid apparently know what they are doing:



    http://news.cnet.com/8301-30686_3-10...html?tag=mncol



    http://cnettv.cnet.com/ep-1115-droid...html?tag=mncol
  • solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by iansilv View Post


    An you talk and surf the web at the same time on tmobile's network?



    If you are on 3GSM or WiFi, then yes. If you are GSM(GPRS/EDGE) then no. Just like AT&T?s network.
  • jabenjaben Posts: 5member
    About every six months we hear about the exclusivity contract ending soon. I don't think anyone knows what hell they're talking about. I have yet to see tangible evidence of the exclusivity contract ending between the company's at a specified time. AT&T has only said that it wouldn't be exclusive forever. I do recall hearing that the exclusivity contract was originally for 2yrs and then extended to 5yrs. But, I probably don't know what I'm talking about either. I think these articles are a waste of time because, so far, every article saying exclusivity ending at a specified time have been 100% wrong (Though I could see a TMobile iPhone before a Verizon iPhone). If any AT&T execs or Apple execs want to share the truth about the length of the exclusivity, we're all ears.
  • iansilviansilv Posts: 283member
    Quote:
    Originally Posted by solipsism View Post


    If you are on 3GSM or WiFi, then yes. If you are GSM(GPRS/EDGE) then no. Just like AT&T?s network.



    OK cool- so at least it's better than the situation with Verizon.
  • solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by jaben View Post


    About every six months we hear about the exclusivity contract ending soon. I don't think anyone knows what hell they're talking about. I have yet to see tangible evidence of the exclusivity contract ending between the company's at a specified time. AT&T has only said that it wouldn't be exclusive forever. I do recall hearing that the exclusivity contract was originally for 2yrs and then extended to 5yrs. But, I probably don't know what I'm talking about either. I think these articles are a waste of time because, so far, every article saying exclusivity ending at a specified time have been 100% wrong (Though I could see a TMobile iPhone before a Verizon iPhone). If any AT&T execs or Apple execs want to share the truth about the length of the exclusivity, we're all ears.



    I think AT&T?s CEO saying that is a clear sign that the exclusivity is coming to its end. Originally it seemed like a 5 year deal, and then a 2 year deal with a 1 year extension for AT&T to agree to the ending of the profit sharing model that was originally set up. That, combined with AT&T?s network being pretty saturated with iPhone data usage already makes me think this rumour for T-Mobile, coming this summer, is the most logical one we?ve seen.
  • sheffsheff Posts: 1,407member
    Yup called that one. Since T Mobile USA already supports all iPhone features (like visual voicemail) via T Mobile Germany, it is a no brainer easy transition to T-Mobile. Also T-Mobile did not bash iPhone like Verizon did and has a decent enough coverage (at least here in chicago) for iPhone use.



    Can't wait!
  • 8corewhore8corewhore Posts: 833member
    For all the business or tech reasons Apple may shun VZ, I have to add to that - they pissed off Jobs and now he wants to spit beechnut in their eyes. I gotta say... People love T-Mobile service, but that could change once the new iPhone drags the network down.
  • bryanhauerbryanhauer Posts: 61member
    Quote:
    Originally Posted by AppleInsider View Post


    "AT&T advertising in the United States has in recent weeks clearly shifted away from iPhone as the carrier likely readies itself to lose exclusivity in the United States (to T-Mobile and not to VZ, we believe) while VZ ads promoting Droid and other anti-iPhone devices appear to have intensified markedly," Reid said.



    Really? When was AT&T ever allowed to advertise the iPhone? They weren't and never have. Part of the deal with Apple was Apple would control the advertising for the iPhone and based on recent AT&T ads that's probably a good thing. This is why the only mention of AT&T in Apple ads is at the very end with a quick 2 second logo before showing the Apple logo.



    Is there no fact checking anymore? Guess copy n paste is the new media.
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