Report: Apple to launch Verizon iPhone in Q3 2010

[AppleInsider]

A new report citing sources in the Taiwan handset supply chain says Apple has contracted to produce a UMTS/CDMA hybrid iPhone due in the third quarter of next year that will enable the company to sell a single global handset to all carriers, and specifically to Verizon Wireless in the US.

The report by OTR Global, provided to AppleInsider by an industry analyst, says the new "worldmode" iPhone will gain compatibility with CDMA2000 networks (including Verizon's US network, which is currently incompatible with existing iPhone models) while retaining compatibility with UMTS 3G networks globally using a new hybrid chip produced by Qualcomm.

According to OTR's sources, Asustek subsidiary Pegatron will build the new hybrid phone devices for Apple rather than Hon Hai, the iPhone's current manufacturer. This decision was reportedly made to prevent the company from being "constrained by a single-source assembler."

A smaller body

The research note also identified the new phone as having a 2.8" screen, which is significantly smaller than the current iPhone's 3.5" display.

Last summer, component pictures indicating the development of a smaller 2.8" iPhone model appeared on the web next to the standard 3.5" parts currently in production, and a Chinese-language newspaper reported that an upcoming model of the iPhone would be smaller and lighter.

Without any mention of both larger and smaller versions in OTR's report, it appears but has not yet been confirmed that next year's iPhone will scale down in size while also gaining compatibility with all major mobile networks.

View more photos and diagrams of the panels at iLounge

CDMA vs. WCDMA

The American technological rift between CDMA providers (including Sprint and Verizon) and GSM/UMTS providers (T-Moblie and AT&T) was widely expected to remain in place until Verizon moved to LTE, the next generation of UMTS service.

In other countries, CDMA providers have either shut down their networks and moved entirely to UMTS service (as Telstra did in Australia) or added a UMTS overlay to their existing CDMA service (as Bell and Telus just recently did in Canada). In the US, Verizon decided to do neither, and instead will only be investing in a new next generation LTE network that won't be completed for years.

This appeared to leave little opportunity for a Verizon iPhone before 2011, but Qualcomm's "worldmode" hybrid component enables Apple to continue offering a single iPhone version that can be sold by both AT&T and Verizon in the US, and on virtually every carrier outside the US.

UMTS is the 3G service associated with GSM providers, but it uses radio carrier technology (Wideband Code Division Multiple Access) similar to but incompatible with Qualcomm's CDMA2000/EVDO used by Verizon. Despite the technical similarities, CDMA2000 and UMTS/WCDMA are competing, non-interoperable 3G technologies. With nearly all mobile carriers having announced plans to shift to UMTS or LTE in the future, CDMA2000 represents a dead end.

It still remains widely deployed in various markets however, including the US, where Verizon's CDMA2000 3G network is widely regarded as having wider reach and providing better data service than AT&T's newer UMTS 3G network. AT&T's 3G service is rated particularly poorly in San Francisco and New York City, where coverage holes have been exacerbated by a huge influx of data-hungry iPhone users. AT&T has yet to introduce its 3G MicroCell to enable users to solve their own dead zones at home or work.

Qualcomm's new hybrid CDMA/WCDMA chip offers the potential for a single, global iPhone that users can take to any major carrier, solving the network fractionalization problem. It also solves other issues that had served as roadblocks, including the issue of user confusion that would result from Apple selling separate CDMA and GSM/UMTS versions of the iPhone.

With one phone that works on both types of networks, any differences between the two (such as in features like conference calling and simultaneous voice and data, unique to UMTS) will be more apparently tied to the provider's network rather than to an iPhone model itself.



Verizon's DROID, cancelation fee launch

Verizon's merciless attacks on AT&T's 3G network coverage in ads spoofing the iPhone's "there's an app for that" slogan were another factor which left some observers to think that Verizon could not possibly be in talks with Apple to sell the iPhone anytime soon, but the OTR report indicates that Verizon and Apple have already hammered out an agreement to sell the new iPhone model within the year.

Verizon recently launched two smartphones aimed squarely at the iPhone: the BlackBerry Storm 2 and Motorola Droid. At the same time, the provider also announced a new cancelation policy that charges users a hefty $350 when they attempt to back out of contracts involving "advanced devices."

Last year, the company found little lasting enthusiasm from users who assumed that the original Storm would be closer to the iPhone in terms of features; whether the new fee is an attempt to penalize unsatisfied users or to profit from switchers next year, it may result in users rethinking their purchases right now.

With reports breaking the news that Verizon will be selling the iPhone within the year, sales of the Storm 2, Droid, and next year's Palm Pre may end up repressed if customers decide they'd rather wait for the iPhone to arrive instead of facing the prospect of a major cancelation penalty and the loss of their subsidy credit by buying an alternative device now.

Droid reviews have largely described it as a second place alternative for users who want to stick with Verizon. That being the case, the prospect of a Verizon iPhone appears poised to deflate Droid sales this holiday season.

End of AT&T exclusivity

The news might not be good for AT&T either, considering that many users have switched to AT&T solely because they wanted to get the iPhone. The availability of a Verizon iPhone may cause AT&T buyers to hold off on new purchases until they see what kinds of competitive deals AT&T and Verizon will offer once the iPhone's exclusivity with AT&T ends next summer and the new "worldmode" iPhone appears.

It does however give AT&T a year to improve its 3G network and roll out the 3G MicroCell before being hit with mass defections from iPhone users irate over service issues. AT&T can still advertise that its 3G network is faster than Verizon's CDMA2000 coverage, and that it offers some features that CDMA2000 does not, including simultaneous voice and data and easy to use, multiple party conference calling.

AT&T has struggled to keep up with the pace of iPhone development, failing to immediately implement iPhone 3.0's MMS and tethering features, and remaining unable to take advantage of the faster 7.2 Mbps HSPA data potential of the iPhone 3GS. The threat posed by a "worldmode" iPhone should push AT&T to deliver a year of high priority network upgrades, and potentially result in more competitive service plans.

[ View this article at AppleInsider.com ]

[SpamSandwich]

I'll be the first to call "bull" on this supposed new Verizon iPhone.

[sflocal]

In other news... Scientists have determined Hell is entering a phase of global cooling. Apparently, Hell is freezing over.

News at 11:00.

[psychodoughboy]

Smaller screen? Screw that. I want a Verizon iPhone very, very badly, but the screen is a perfect size right now - that's a HUGE drop in size.

[Woode]

If this is true, then SCHWEET!

I'm not moving to Verizon, cuz their service SUCKS at my home, but I got Verizon friends that are chomping at the bit to get an iPhone. I pretty much told them that a supplier (Broadcom/Qualcomm) would have to come out with a hybrid radio chip for this to happen, and lookie here, it did (if this is true).

Not sure about the 2.5" screen model, though. The current 3.5" screen is pushing it for my aging eyes, at least when hitting the web with Safari.

I'm taking this with a big block of salt, but anything that gets AT&T off their buttocks to push out network upgrades (and tethering!) makes me happy.

[mdriftmeyer]

B.S. The next phone will be LTE capable for 4G roll out, not CMDA enabled.

[SpamSandwich]

Originally Posted by psychodoughboy

Smaller screen? Screw that. I want a Verizon iPhone very, very badly, but the screen is a perfect size right now - that's a HUGE drop in size.

It's nonsense. A smaller screen size would affect all 100,000 apps currently for sale in the App Store. It's speculation by people who have no idea what they're talking about.

[mgz]

I could only buy that the screen will be "smaller" if they mean in width, i.e. to make the phone 16:9 rather than the current strange ratio, and with a higher resolution. But I find it hard to believe even so. Anyone feel like re-working 100,000 apps?

[BenRoethig]

Originally Posted by mdriftmeyer

B.S. The next phone will be LTE capable for 4G roll out, not CMDA enabled.

You do understand that it takes time to upgrade a network right? A LTE iphone would only work in upgraded parts of the network and have no service elsewhere.

[BenRoethig]

Originally Posted by mgz

I could only buy that the screen will be "smaller" if they mean in width, i.e. to make the phone 16:9 rather than the current strange ratio, and with a higher resolution. But I find it hard to believe even so. Anyone feel like re-working 100,000 apps?

Or if they made a new product to get past the AT&T exclusive contract.

[sheff]

I agree smaller screen is BS. If anything I would push the screen more towards the edges (icluding top edges) at least on the touch. As far as the vPhone, I would say hella unlikely, at least not untill we get 4G. Untill then I am hoping for T-Mobile or US Cellular. We'll see.

[charlituna]

Originally Posted by BenRoethig

Or if they made a new product to get past the AT&T exclusive contract.

they have been pretty firm on one model phone. not one for this group and one for that one.

now if someone came out with a gsm/cdma/lte chip I could see verizon and sprint on the list of carriers easy

that said, even just T-mobile v ATT with an unlocked phone could kick ATT in the ass to make some improvements so it's not bad

[solipsism]

Originally Posted by SpamSandwich

I'll be the first to call "bull" on this supposed new Verizon iPhone.

I like the idea. I see no reason to move to a 14.4Mbps HSDPA radio next year, though HSUPA would be nice. Eventually Apple and AT&T have to hit that saturation point that requires a bleed over to other networks, especially in light of AT&T’s claim that their phone data usage is up ~5000% in 3 years.

If the contract is finalized then a 2nd network may work. It’s not like CDMA will be going away in the US within the next 5 years, even after LTE is up. What I want to know is…

— How much this chip costs and how much extra is the licensing that will affect every GSM-based iPhone user?
— How big the chip compared to the current one in the iPhone?
— How much power does it use in comparison to the current chip?

Originally Posted by psychodoughboy

Smaller screen? Screw that. I want a Verizon iPhone very, very badly, but the screen is a perfect size right now - that's a HUGE drop in size.

They might have to go the iPod Mini route like they did with the iPod by making a smaller iPhone in order to continue growth, but I don’t think they’ve reached that saturation point yet. Especially with Apple selling the 8GB 3G for $99.

Originally Posted by mdriftmeyer

B.S. The next phone will be LTE capable for 4G roll out, not CMDA enabled.

That will be impossible for Summer 2010. It’ll be years before Verizon can get LTE coverage up to CDMA’s coverage.

[idealtoy]

Originally Posted by AppleInsider

AT&T has yet to introduce its 3G MicroCell to enable users to solve their own dead zones at home or work.

[ View this article at AppleInsider.com ]

NOT TRUE.

AT&T has been marketing it for a while now.
See this link AT&T 3G MicroCell™

[c4rlob]

Let's see what all those Verizon customers who swore they could only be happy with a physical keyboard do when iPhone comes to their carrier

[AjitMD]

Originally Posted by solipsism

I like the idea. I see no reason to move to a 14.4Mbps HSDPA radio next year, though HSUPA would be nice. Eventually Apple and AT&T have to hit that saturation point that requires a bleed over to other networks, especially in light of AT&T’s claim that their phone data usage is up ~5000% in 3 years.

If the contract is finalized then a 2nd network may work. It’s not like CDMA will be going away in the US within the next 5 years, even after LTE is up. What I want to know is…

— How much this chip costs and how much extra is the licensing that will affect every GSM-based iPhone user?
— How big the chip compared to the current one in the iPhone?
— How much power does it use in comparison to the current chip?

They might have to go the iPod Mini route like they did with the iPod by making a smaller iPhone in order to continue growth, but I don’t think they’ve reached that saturation point yet. Especially with Apple selling the 8GB 3G for $99.



That will be impossible for Summer 2010. It’ll be years before Verizon can get LTE coverage up to CDMA’s coverage.

QCOM has license agreements to make the GSM/UMTS/CDMA chipsets. My guess the hybrid chips sets will cost 50% more to may be $30+. On top of that QCOM charges an average royalty of 5.5% of sales, which would amount to $33-39/iPhone. What I do not know is if the QCOM x-licensing precludes other parties charging extra royalties. Other parties would include Interdigital, and the rest of the UMTS group that would include just above anybody.

Anyway, this kind of hybrid would add other costs in components like power amps, etc. Since CDMA/EVDO is less than 20%, I wonder if there is benefit versus cost advantage. Makes this report dubious, including changing the screen size even the number and aspect of the pixels stay the same. Hard enough to read as it is... and the physical size is just about right.

[Gazoobee]

I'm having a hard time believing that an even smaller iPhone has any utility.

[Xian Zhu Xuande]

Originally Posted by SpamSandwich

It's nonsense. A smaller screen size would affect all 100,000 apps currently for sale in the App Store. It's speculation by people who have no idea what they're talking about.

No... they could keep the same resolution and maintain compatibility.
What would happen, though, is we would lose touch space on the screen. The keyboard would become more difficult to use and buttons in apps would become more difficult to use. If there's a smaller version of the phone coming out--as small as the one mentioned in this article--I can't imagine it is an all-around replacement for the current iPhone. Perhaps an alternative of some sort.

[Eriamjh]

True or not, competition is a good thing. It makes companies try harder for your business.

As for a smaller iPhone, it would likely have the same resolution as the current. Younger eyes will likely have no trouble seeing the smaller iPhone. I, on the other hand, will need the 10 inch iPhone soon.

[colem]

Originally Posted by mdriftmeyer

B.S. The next phone will be LTE capable for 4G roll out, not CMDA enabled.

I don't think the next iPhone will be LTE. It will be HSPA+ 21MBPS though. It is currently 7.2. 21 seems more realistic. Especially since many carriers are deploying this notably in Canada.

EDIT: I like the idea of the hybrid chip however, wouldnt that mean that on Bell or Telus, who only has 7.2 and 21, be able to go back to evdo or (god forbid) 1x digital? where needed?

[teckstud]

Originally Posted by Gazoobee

I'm having a hard time believing that an even smaller iPhone has any utility.

I agree - its screen size is what makes it an "iPhone"- otherwise its something else.

[teckstud]

Originally Posted by Xian Zhu Xuande

No... they could keep the same resolution and maintain compatibility.
What would happen, though, is we would lose touch space on the screen. The keyboard would become more difficult to use and buttons in apps would become more difficult to use. If there's a smaller version of the phone coming out--as small as the one mentioned in this article--I can't imagine it is an all-around replacement for the current iPhone. Perhaps an alternative of some sort.

A nano-phone with a keyboard? Flip or slider?

[vercordio]

They could make the screen smaller while keeping the same resolution. Just make the LCD more pixel-dense. They've done it before (on like the iPod Nano, right?).

Anyway, that said, I've been waiting two years for a Verizon iPhone (I live in NYC, and I just don't hate myself enough to sign up for AT&T), but if it comes out at two-thirds the screen size, that's a deal-breaker. I'll just get a damn Android phone and be done with it.

[jaben]

I've always thought Apple was very strict about its margins, and now that they have lowered prices (which negatively affect margins) on many of there other products (justified because of gains on iphone), I find it very hard to believe that they would take on a brand new piece of hardware that's probably much pricier (because it's not being used by the masses yet), hence cutting into those margins. I love my iphone, but realistically, many aspects of the hardware are not cutting edge (a 3MP camera). I could see the iPhone on T-Mobile, being that they are aggressively deploying 3G and they have great customer service; apple would only have to place an additional WCDMA antenna in the device, and slightly modify the software if they choose to go with T-Mobile. I guess we will have to wait and see.

[cwfrederick]

hmm, first comes iphone, then iphone mini, then iphone nano, then.. world domination!

[bdkennedy1]

If the iPhone does move to Verizon, it's goodbye AT&T for me. Anyone remember brand loyalty? Well with AT&T there isn't any. People are going to remember the bullshit we had to go through.

[Xian Zhu Xuande]

Originally Posted by teckstud

A nano-phone with a keyboard? Flip or slider?

I've been musing over what it could be. I just can't imagine them shrinking the regular iPhone so much. There's just no need to do it. For a smaller screen/phone they could remove features which take up space in the unit and re-design the UI for ease-of-use on a smaller screen. It does strike me as a good idea, but I just don't know where Apple could go with it.

And I cannot picture Apple including a physical keyboard. They are as minimal as possible in every regard. Just look at their history with the mouse. They'll try to find some other solution (even if a physical keyboard makes perfect sense).

I can picture one of two general phones.

(In either case, it would probably use the same resolution as the iPhone).

1) An iPhone which is focused only on the bare essentials (phone, iPod, maps, calendar, contacts, calculator and other core capabilities). Extra features, and perhaps even the app store, would be stripped out. It would be their general market phone. It could have goodies like a camera or video recording. Mostly this seems possible given the keyboard and usability problems that present at a smaller screen size.

2) A smaller version modeled after the iPhone, complete with similar capabilities and the full-fledged app store. This would be possible, given they could easily match the iPhone's resolution on the smaller screen. They might have to re-design some UI elements like the keyboard to make this work. This could be cool for sharp-eyed youngsters, but the idea doesn't really sit well with me. It just doesn't seem like Apple, and the confusion it would cause among some users seems like something they would avoid.

I think some variation of #1 could be a marketable product.

Note: I don't know anybody, of course. All I have is a good sense of how Apple works after years of using their expensive toys and following the company closely (I've been in and out of their stock for years now).

[mdriftmeyer]

Originally Posted by jaben

I've always thought Apple was very strict about its margins, and now that they have lowered prices (which negatively affect margins) on many of there other products (justified because of gains on iphone), I find it very hard to believe that they would take on a brand new piece of hardware that's probably much pricier (because it's not being used by the masses yet), hence cutting into those margins. I love my iphone, but realistically, many aspects of the hardware are not cutting edge (a 3MP camera). I could see the iPhone on T-Mobile, being that they are aggressively deploying 3G and they have great customer service; apple would only have to place an additional WCDMA antenna in the device, and slightly modify the software if they choose to go with T-Mobile. I guess we will have to wait and see.

It's not happening with WCDMA.

[mdriftmeyer]

Originally Posted by colem

I don't think the next iPhone will be LTE. It will be HSPA+ 21MBPS though. It is currently 7.2. 21 seems more realistic. Especially since many carriers are deploying this notably in Canada.

EDIT: I like the idea of the hybrid chip however, wouldnt that mean that on Bell or Telus, who only has 7.2 and 21, be able to go back to evdo or (god forbid) 1x digital? where needed?

By the 3rd Quarter of 2010 the iPhone will have LTE disabled but ready to activate as AT&T rolls out after the 4th Quarter. You are better off having inactive hardware capacity in lieu of an impending backbone expansion than you are trying to dump 2 separate runs of iPhone generations onto the market.

The HSPA+21Mbps will be enabled and will switch to LTE as it's deployed; and switch down to areas incapable of running such performance demanding areas.

[cameronj]

Originally Posted by charlituna

they have been pretty firm on one model phone. not one for this group and one for that one.

Except for that China phone without wifi eh?

[res08hao]

I am one of those who have jumped ship. ATT was just too lame. My Blackberry Tour mostly sucks,
but will have to do until iPhone comes to Verizon.

[MacTripper]

Originally Posted by SpamSandwich

It's nonsense. A smaller screen size would affect all 100,000 apps currently for sale in the App Store. It's speculation by people who have no idea what they're talking about.

It would have little or no effect, if the smaller screen comes with higher pixel resolution to compensate.

We might have to resort to using a stylus instead of our fingers though...

[hiimamac]

Well it's about time.


Hey Apple Insider. Love love love the new iPhone mode for your website. Any chance you will be rolling out the same technology for the forum section???
As the forums are the pulse and heart of the site. Would love to see some major breah thruoghs like the users used most phrases stored so you can wheel though the most commonnly used phrases? That said, ANYONE KNOW WHERE TO SEND PRODUCT ideas to Apple????


For the end user I think we may be in to unlimited or lower price priced data plans. Yaaayyyyy


For those that qualify for AT&T alisrt service, you gotta jail break your phone and get a GV Mobilw number. Than you add that number and all calls from it ate free

AnywT. The consume wins. AT&T eat my hat and your crazy text and data plans. Boooooooooo

hip hip hurray. Types on an iPhone. Sorry for the spelling.

Originally Posted by AppleInsider

A new report citing sources in the Taiwan handset supply chain says Apple has contracted to produce a UMTS/CDMA hybrid iPhone due in the third quarter of next year that will enable the company to sell a single global handset to all carriers, and specifically to Verizon Wireless in the US.

The report by OTR Global, provided to AppleInsider by an industry analyst, says the new "worldmode" iPhone will gain compatibility with CDMA2000 networks (including Verizon's US network, which is currently incompatible with existing iPhone models) while retaining compatibility with UMTS 3G networks globally using a new hybrid chip produced by Qualcomm.

According to OTR's sources, Asustek subsidiary Pegatron will build the new hybrid phone devices for Apple rather than Hon Hai, the iPhone's current manufacturer. This decision was reportedly made to prevent the company from being "constrained by a single-source assembler."

A smaller body

The research note also identified the new phone as having a 2.8" screen, which is significantly smaller than the current iPhone's 3.5" display.

Last summer, component pictures indicating the development of a smaller 2.8" iPhone model appeared on the web next to the standard 3.5" parts currently in production, and a Chinese-language newspaper reported that an upcoming model of the iPhone would be smaller and lighter.

Without any mention of both larger and smaller versions in OTR's report, it appears but has not yet been confirmed that next year's iPhone will scale down in size while also gaining compatibility with all major mobile networks.

View more photos and diagrams of the panels at iLounge

CDMA vs. WCDMA

The American technological rift between CDMA providers (including Sprint and Verizon) and GSM/UMTS providers (T-Moblie and AT&T) was widely expected to remain in place until Verizon moved to LTE, the next generation of UMTS service.

In other countries, CDMA providers have either shut down their networks and moved entirely to UMTS service (as Telstra did in Australia) or added a UMTS overlay to their existing CDMA service (as Bell and Telus just recently did in Canada). In the US, Verizon decided to do neither, and instead will only be investing in a new next generation LTE network that won't be completed for years.

This appeared to leave little opportunity for a Verizon iPhone before 2011, but Qualcomm's "worldmode" hybrid component enables Apple to continue offering a single iPhone version that can be sold by both AT&T and Verizon in the US, and on virtually every carrier outside the US.

UMTS is the 3G service associated with GSM providers, but it uses radio carrier technology (Wideband Code Division Multiple Access) similar to but incompatible with Qualcomm's CDMA2000/EVDO used by Verizon. Despite the technical similarities, CDMA2000 and UMTS/WCDMA are competing, non-interoperable 3G technologies. With nearly all mobile carriers having announced plans to shift to UMTS or LTE in the future, CDMA2000 represents a dead end.

It still remains widely deployed in various markets however, including the US, where Verizon's CDMA2000 3G network is widely regarded as having wider reach and providing better data service than AT&T's newer UMTS 3G network. AT&T's 3G service is rated particularly poorly in San Francisco and New York City, where coverage holes have been exacerbated by a huge influx of data-hungry iPhone users. AT&T has yet to introduce its 3G MicroCell to enable users to solve their own dead zones at home or work.

Qualcomm's new hybrid CDMA/WCDMA chip offers the potential for a single, global iPhone that users can take to any major carrier, solving the network fractionalization problem. It also solves other issues that had served as roadblocks, including the issue of user confusion that would result from Apple selling separate CDMA and GSM/UMTS versions of the iPhone.

With one phone that works on both types of networks, any differences between the two (such as in features like conference calling and simultaneous voice and data, unique to UMTS) will be more apparently tied to the provider's network rather than to an iPhone model itself.



Verizon's DROID, cancelation fee launch

Verizon's merciless attacks on AT&T's 3G network coverage in ads spoofing the iPhone's "there's an app for that" slogan were another factor which left some observers to think that Verizon could not possibly be in talks with Apple to sell the iPhone anytime soon, but the OTR report indicates that Verizon and Apple have already hammered out an agreement to sell the new iPhone model within the year.

Verizon recently launched two smartphones aimed squarely at the iPhone: the BlackBerry Storm 2 and Motorola Droid. At the same time, the provider also announced a new cancelation policy that charges users a hefty $350 when they attempt to back out of contracts involving "advanced devices."

Last year, the company found little lasting enthusiasm from users who assumed that the original Storm would be closer to the iPhone in terms of features; whether the new fee is an attempt to penalize unsatisfied users or to profit from switchers next year, it may result in users rethinking their purchases right now.

With reports breaking the news that Verizon will be selling the iPhone within the year, sales of the Storm 2, Droid, and next year's Palm Pre may end up repressed if customers decide they'd rather wait for the iPhone to arrive instead of facing the prospect of a major cancelation penalty and the loss of their subsidy credit by buying an alternative device now.

Droid reviews have largely described it as a second place alternative for users who want to stick with Verizon. That being the case, the prospect of a Verizon iPhone appears poised to deflate Droid sales this holiday season.

End of AT&T exclusivity

The news might not be good for AT&T either, considering that many users have switched to AT&T solely because they wanted to get the iPhone. The availability of a Verizon iPhone may cause AT&T buyers to hold off on new purchases until they see what kinds of competitive deals AT&T and Verizon will offer once the iPhone's exclusivity with AT&T ends next summer and the new "worldmode" iPhone appears.

It does however give AT&T a year to improve its 3G network and roll out the 3G MicroCell before being hit with mass defections from iPhone users irate over service issues. AT&T can still advertise that its 3G network is faster than Verizon's CDMA2000 coverage, and that it offers some features that CDMA2000 does not, including simultaneous voice and data and easy to use, multiple party conference calling.

AT&T has struggled to keep up with the pace of iPhone development, failing to immediately implement iPhone 3.0's MMS and tethering features, and remaining unable to take advantage of the faster 7.2 Mbps HSPA data potential of the iPhone 3GS. The threat posed by a "worldmode" iPhone should push AT&T to deliver a year of high priority network upgrades, and potentially result in more competitive service plans.

[ View this article at AppleInsider.com ]

[noexpectations]

....to keep the defections low. This is ridiculous....a 2.8" screen? I truly believe that Verizon is behind all these rumors to keep their customers as long as they can. "I'll just wait a few more months and Verizon will get the iPhone."

Low blow....very deceitful.

$350 termination fee....Gee, what other surprises awaits us a Verizon?

[jaben]

Originally Posted by mdriftmeyer

It's not happening with WCDMA.

? I don't understand your response. WCDMA is used to refer to the standard data interface used by the UMTS mobile communication system. I use WCDMA synonymously with UMTS . iPhone already supports WCDMA 850 / WCDMA 1900 / WCDMA 2100, just add WCDMA 1700, and TMOBILE 3G support is a go.

[bartfat]

Originally Posted by cameronj

Except for that China phone without wifi eh?

They took out the WiFi antenna. That's basically like taking out a device using USB in your computer. It's pretty minimal configuration work for Apple, despite the fact that the government forced them to exclude WiFi from their phones initially. OTOH designing a CDMA phone will require a pretty big investment in the necessary software coding. And smaller screen? I call fake like the rest. Honestly, the easiest option for Apple at this point is to come out with a T-Mobile 3G version, in addition to the AT&T version. But I imagine that's not what any CDMA carrier subscriber wanted to hear.

Originally Posted by noexpectations

$350 termination fee....Gee, what other surprises awaits us a Verizon?

Highway robbery?

[mytdave]

You never know. Apple has completely surprised everyone before. Yet, I really don't think any of this is likely. I actually hope nothing in this article is true.

A smaller iPhone would be a BAD idea. A 3.5" screen at the current aspect ratio is perfect. Leave it alone! If anything, switch to an OLED screen of the same size. If Apple wants to provide more pixels in the same size and ratio, that's okay too - just as long as the apps can scale (resolution independence).

Heck with Verizon. VZ is influential in the US now, but if they don't hurry up with LTE, it'll come back to bite 'em. Since the rest of the world is on GSM/UMTS (except for whatever weirdo thing China does) that leaves VZ as pretty insignificant, and it'll catch up to 'em if they don't hurry and upgrade.

T-mobile baby. Get the iPhone on TM! Sure they're small, but they do okay, and seem to have a somewhat loyal user base. I think the iPhone would be a good thing for them. I have no real idea what Sprint is piddling around with. They are claiming '4G' rollout, but theirs is probably just another extension of CDMA. If they don't hurry up with LTE, they will really become insignificant.

I would really love to see the iPhone on every carrier but VZ (in the US: ATT, TM, & SM) - it would really serve VZ right for having stuck their nose up at the deal of the century when Apple first approached them. Ha!

[solipsism]

Originally Posted by AjitMD

QCOM has license agreements to make the GSM/UMTS/CDMA chipsets. My guess the hybrid chips sets will cost 50% more to may be $30+. On top of that QCOM charges an average royalty of 5.5% of sales, which would amount to $33-39/iPhone. What I do not know is if the QCOM x-licensing precludes other parties charging extra royalties. Other parties would include Interdigital, and the rest of the UMTS group that would include just above anybody.

Anyway, this kind of hybrid would add other costs in components like power amps, etc. Since CDMA/EVDO is less than 20%, I wonder if there is benefit versus cost advantage. Makes this report dubious, including changing the screen size even the number and aspect of the pixels stay the same. Hard enough to read as it is... and the physical size is just about right.

If the cost is really that high it does seem unlikely. That Apple will reduce profit in all iPhones by that much right off the top while potentially increasing the chip size and power consumption, for something that isn’t really a problem to begin with it. If Apple decides to spread out in the US then I’d think T-Mobile will be more than willing to get some extra users on their network. This only requires the extra spectrum (assuming they even make them). Plus, with Verizon’s anti-iPhone ads it would seem they are the last company Apple would partner with right now.

Originally Posted by cameronj

Except for that China phone without wifi eh?

With the WiFi ban about to be lifted I would expect that a driver and UI update will add the feature. I doubt that Apple re-engineered the logic board to remove the WiFi Chip, especially considering that the WiFI chip also contains BlueTooth+EDR+FM.

[solipsism]

Originally Posted by bartfat

They took out the WiFi antenna.

I’ve been waiting for some info on this. Do you a source to link to?

[cameronj]

Originally Posted by jaben

I've always thought Apple was very strict about its margins, and now that they have lowered prices (which negatively affect margins) on many of there other products (justified because of gains on iphone), I find it very hard to believe that they would take on a brand new piece of hardware that's probably much pricier (because it's not being used by the masses yet), hence cutting into those margins.

So if something costs $30 more, and Verizon pays $60 more for it, doesn't Apple's margin stay the same? (I have an economics degree, it's a rhetorical question)