Verizon CEO's comments interpreted to mean no iPhone until 2011
When Verizon's CEO earlier this week said a CDMA-compatible iPhone on his company's network would be "Apple's call," it dampened hopes of a Verizon iPhone appearing in 2010.
It was on Tuesday that Ivan Seidenberg, chief executive of Verizon, said his company has told Apple they would like to carry the iPhone. He even specifically cited a report from The Wall Street Journal in late March that said Apple is working on two new iPhones, including one compatible with CDMA networks that could go into production in September.
But Seidenberg also cautioned that any decision regarding the iPhone on Verizon's network would be "Apple's call." On Friday, Reuters gathered reaction from analysts, who interpreted Seidenberg's comments as an attempt to cool off talk that a Verizon iPhone could be coming this year.
Credit Suisse analyst Jonathan Chaplin said that he believes Seidenberg was trying to "realistically set expectations." He believes that AT&T will maintain its exclusive rights to the iPhone for the next year at least.
And Avi Greengart, with Current Analysis, reportedly said Apple is unlikely to do a "one-off" version of the iPhone for compatibility with CDMA networks when Long Term Evolution 4G is around the corner. Both AT&T and Verizon plan to upgrade their networks in the coming years to the new wireless standard.
"It's not in Apple's nature to do a one-off for a technology Verizon itself is moving away from," Greengart reportedly said.
Others said Verizon runs the risk of a publicity nightmare if adding the iPhone causes network issues, or if coverage isn't what consumers have come to expect given Verizon's touting of its coverage map in TV commercials.
Talk of a Verizon iPhone dissipated in January, after Apple executives made a clear effort to demonstrate they are happy with their partnership with AT&T. The company also aimed to downplay speculation that the iPhone would become available on multiple carriers in the U.S. But it was the Journal's report claiming production of a CDMA iPhone that once again fueled rumors that Apple might bring its handset to the largest wireless carrier in the U.S.
Rumors of the end of AT&T's exclusive agreement for the iPhone have persisted for years. Currently, AT&T is the sole carrier of the iPhone in the U.S. Some have said that exclusive agreement is set to end this summer.
It was on Tuesday that Ivan Seidenberg, chief executive of Verizon, said his company has told Apple they would like to carry the iPhone. He even specifically cited a report from The Wall Street Journal in late March that said Apple is working on two new iPhones, including one compatible with CDMA networks that could go into production in September.
But Seidenberg also cautioned that any decision regarding the iPhone on Verizon's network would be "Apple's call." On Friday, Reuters gathered reaction from analysts, who interpreted Seidenberg's comments as an attempt to cool off talk that a Verizon iPhone could be coming this year.
Credit Suisse analyst Jonathan Chaplin said that he believes Seidenberg was trying to "realistically set expectations." He believes that AT&T will maintain its exclusive rights to the iPhone for the next year at least.
And Avi Greengart, with Current Analysis, reportedly said Apple is unlikely to do a "one-off" version of the iPhone for compatibility with CDMA networks when Long Term Evolution 4G is around the corner. Both AT&T and Verizon plan to upgrade their networks in the coming years to the new wireless standard.
"It's not in Apple's nature to do a one-off for a technology Verizon itself is moving away from," Greengart reportedly said.
Others said Verizon runs the risk of a publicity nightmare if adding the iPhone causes network issues, or if coverage isn't what consumers have come to expect given Verizon's touting of its coverage map in TV commercials.
Talk of a Verizon iPhone dissipated in January, after Apple executives made a clear effort to demonstrate they are happy with their partnership with AT&T. The company also aimed to downplay speculation that the iPhone would become available on multiple carriers in the U.S. But it was the Journal's report claiming production of a CDMA iPhone that once again fueled rumors that Apple might bring its handset to the largest wireless carrier in the U.S.
Rumors of the end of AT&T's exclusive agreement for the iPhone have persisted for years. Currently, AT&T is the sole carrier of the iPhone in the U.S. Some have said that exclusive agreement is set to end this summer.
Comments
I guess they are getting a sweetheart deal with AT&T abd its profit over good business decision here.
Apple has obviously made a lot of good decisions, this is just not one of them.
I had no problem with a 2 year AT&T exclusivity.
Google is eventually going to go ahead has there are like 50 different Android phones amongst all the carrier. Just the sheer numbers will give them the lead. Does not matter that they are not as good.
Apple just can't be naive enough to thing everyone will automatically go to AT&T.
There is the move to 4G or LTE. Apple could be waiting for this to happen and do not want o waste time doing a CDMA phone for what would amount to one year.
Something has to happen soon.
When Verizon's CEO earlier this week said a CDMA-compatible iPhone on his company's network would be "Apple's call," it dampened hopes of a Verizon iPhone appearing in 2010.
There would be no reason in principle why Verizon would not want another in-demand phone to add to its lineup.
But in the meantime, they are doing great with what they have. Their Android phones are selling more and more, and they also carry the best-selling smartphone out there - The Blackberry.
Verizon would like to have it, but they don't need it.
As for the Verizon CEO's comments, it could also be to make the public believe that it's entirely up to Apple and that Verizon will accept whatever terms Apple wants, thus making us think it's Apple holding up the deal. But he didn't say what Verizon's terms were. They could privately be telling Apple that the iPhone must support Verizon's app store, for example, and then publicly saying the ball is in Apple's court.
There would be no reason in principle why Verizon would not want another in-demand phone to add to its lineup.
But in the meantime, they are doing great with what they have. Their Android phones are selling more and more, and they also carry the best-selling smartphone out there - The Blackberry.
Verizon would like to have it, but they don't need it.
Which would be a strong reason for Apple to want to get the iPhone on Verizon ASAP. Even if it's a CDMA-only phone. Once people have spent $100+ on Android apps and accessories, and invest time in entering all their data and such, it will be a tougher sell to get them to buy an iPhone and start all over again.
Which would be a strong reason for Apple to want to get the iPhone on Verizon ASAP. Even if it's a CDMA-only phone. Once people have spent $100+ on Android apps and accessories, and invest time in entering all their data and such, it will be a tougher sell to get them to buy an iPhone and start all over again.
Agreed. Everyone (except AT&T) has a bunch of Android phones, and the iPhone is exclusive to AT&T.
And the Android market is growing fast, while RIM is holding its own.
Anybody on any wireless service has lots of choices, and once they are locked in, later switching to an iPhone becomes less likely.
Any iPhone (or any phone, for that matter) on Verizon's nextwork, even 3 years from now, will need to support CDMA. So saying that a CDMA iPhone would be a "one-off" is a pretty silly argument. However, I could see Apple waiting for the LTE deployment to get a foothold so they could do an LTE/CDMA phone. In that case, waiting until 2011 would probably make sense.
I was going to make the exact same argument.
Even when Verizon begins to roll out LTE, it will be YEARS until there's enough LTE coverage to replace CDMA. So any LTE phone on Verizon's network will need to support CDMA for those areas that don't have LTE yet. I will be amazed if Verizon manages to completely replace CDMA in less than 5 years.
"Ok, so the shares are sold? Ok great... UMM, AS IT TURNS OUT NOT UNTIL 2011"
Seidenberg is Steve's bitch.
Word.
I was going to make the exact same argument.
Even when Verizon begins to roll out LTE, it will be YEARS until there's enough LTE coverage to replace CDMA. So any LTE phone on Verizon's network will need to support CDMA for those areas that don't have LTE yet. I will be amazed if Verizon manages to completely replace CDMA in less than 5 years.
Yes and IMHO and the iPhone for Verizon should offer LTE and an ability to switch to CDMA when needed albeit with far more limited abilities that has. To make a CDMA only phone would be such a retro step and Apple simply doesn't do that. So waiting till the dual function services start to roll out whenever that is (idk if it has started yet), is the wise way to go. It also gives Verizon a hell of an incentive to upgrade fast. Even if only certain areas have LTE at first that will be sufficient for the dual capability iPhone. Personally I think SJ should ask Verizon to tone down some of the Map ads which are a little flakey although I have a lot of basis in truth too. That is probably unrealistic and the slugfest between coverage and a modern service with less coverage will continue.
Why Apple does not want to go to another carrier is mind boggling.
Maybe they do, maybe there are other issues making a single cerise on AT&T the best option at the moment. Like not being able to make enough product due to NAND shortages. Remember, we're taking about the largest carrier in the US and last year caused supply issues for months in places. (just an possibilities, not a statement of fact)
It's time for the FCC to step up to the plate and stop these exclusive agreements between phones and carriers. I live in an area that is only serviceable by Verizon. I should be able to use any phone I choose. Maybe we need fair rates for service and buy our own phones.
This is really the FCC's faucet from not having a homogenized network to being with. Take the contract-free, unlocked iPad, for example, it's still not going to work on any other carrier, except for T-Mobile on EDGE because of the HW. The FCC can't force Apple to engineer a new phone even if they did break the contract.
I feel you though. AT&T works great for me but Verizon would shoot up the stock so I want them to get it.
Any iPhone (or any phone, for that matter) on Verizon's nextwork, even 3 years from now, will need to support CDMA. So saying that a CDMA iPhone would be a "one-off" is a pretty silly argument. However, I could see Apple waiting for the LTE deployment to get a foothold so they could do an LTE/CDMA phone. In that case, waiting until 2011 would probably make sense.
As for the Verizon CEO's comments, it could also be to make the public believe that it's entirely up to Apple and that Verizon will accept whatever terms Apple wants, thus making us think it's Apple holding up the deal. But he didn't say what Verizon's terms were. They could privately be telling Apple that the iPhone must support Verizon's app store, for example, and then publicly saying the ball is in Apple's court.
QFT
VZW was looking to run away with the lead and then the iPhone knocked a home run out of the park and has brought AT&T back into the ballgame. Without the iPhone, VZW would probably be 10x worse or the same as they were several years ago with locked down phones and such. So while we all may hate Apple is not on VZW, they have helped a lot of people without iPhones get a better value for their $.
As far as Apple not putting their phone on VZW, it may also come down to Apple wanting to squeeze every last penny they can from AT$T users only to move to VZW and do the same. It's a great money move if they can make the market share hold on. It's a gamble but Steve and the Gang these days normally bet on sure things.
If this it true, it sounds like the iPhone is going droid to me, which means not only are they looking at the "cellular" map but also the wireless map. ATT offers free access to hotspots with internet service, I think there is a bigger picture here than most are seeing.
I am an investor and was looking at the companies as a whole, ATT is twice the size of VZ
ATT market cap is $155 billion VZ is $85.5 billion, who's better prepared to serve Apple, and we all know Jobs is a control freak with his products, he may like where he is just fine. ATT stock on the rise while VZ is floundering.....
G-
Analyst 1:"ok guys...lets dissect his comment and try to figure out what it might mean"
Analyst2:"who cares?
Analyst3: "Well he could be trying to keep quiet about a verizon iphone and deflect any hints"
Analyst1:"Good thats good go get working on that story"
Analyst4:"He could possibly never get the iphone, i mean it sounds like apple and vzw havent even talked"
Analyst1:"Great point...Type it up,spread the word:
Analyst5:"I've got it! They want the iPhone but probably not until 2011!"
Analyst1:"WOW I NEVER THOUGHT OF THAT, EXPLAIN"
Analyst5:"Well obviously they want it but maybe apple doesnt want to make a cdma only phone so they are waiting until LTE rolls out. Think about it..why invest in a cdma only phone when they are dropping it anyway! its a dead technology anyway no one will use it in 2011
Stupidity on apples part..CDMA is NOT going away..they havent tested the technology...why not get a head start with CDMA and have this extra year before LTE to AT LEAST excel in its CDMA aspect, considering LTE will be a baby and may come with problems...Great thinking guys..
Why Apple does not want to go to another carrier is mind boggling.
I guess they are getting a sweetheart deal with AT&T abd its profit over good business decision here.
Apple has obviously made a lot of good decisions, this is just not one of them.
I had no problem with a 2 year AT&T exclusivity.
Google is eventually going to go ahead has there are like 50 different Android phones amongst all the carrier. Just the sheer numbers will give them the lead. Does not matter that they are not as good.
Apple just can't be naive enough to thing everyone will automatically go to AT&T.
There is the move to 4G or LTE. Apple could be waiting for this to happen and do not want o waste time doing a CDMA phone for what would amount to one year.
Something has to happen soon.
But you forget, Steve Jobs doesn't care about market share for the sake of market share and being number one when they would rather be the leader in technology and proud to produce and put out the products they do, so long as they will not compromise the company's game plan and goals of what they deem is proper and for now, GSM is where it's at and Verizon network technology doesn't cut the Apple mustard. Notice how Apple didn't jump on the Netbook bandwagon against all the people saying, 'look at all the buyers going out and buying Netbooks because of price and Apple is missing out on all those sales'.
But you forget, Steve Jobs doesn't care about market share for the sake of market share and being number one when they would rather be the leader in technology and proud to produce and put out the products they do, so long as they will not compromise the company's game plan and goals of what they deem is proper and for now, GSM is where it's at and Verizon network technology doesn't cut the Apple mustard. Notice how Apple didn't jump on the Netbook bandwagon against all the people saying, 'look at all the buyers going out and buying Netbooks because of price and Apple is missing out on all those sales'.
If Steve Jobs does not care about market share, then he should rethink. Android, it's most similar competitor is gaining fast in the market--in all carriers, soon to include even AT&T. A nonchalant attitude to marketshare may have worked in the age of the dumbphones where customers were not loyal to any platform nor were they invested monetarily in them. The more Apple sticks to just one carrier, the more people in other carriers invest themselves in Android applications. The people who were gonna switch to AT&T for the iphone pretty much have done so after 3 years--that cow has been milked dry by now. Current iPhone owners will replace their old ones with the new model...and every year the number of switchers will dwindle and dwindle...even more so if they are invested in a different platform. They can certainly make money from current AT&T customers replacing their iphones, but growth will stall in the US. If Apple is not caring about market share, then they really dropping the ball.