Piper: Apple's next big iPhone feature is Verizon
While some investors have expressed concern that Apple cannot continue its level of innovation attained thus far with the iPhone, one analyst believes the Verizon network will be the "next big feature" for Apple's handset.
Apple can maintain its "rapid pace of innovation," analyst Gene Munster of Piper Jaffray said Wednesday, as it prepares to enter the second chapter of the iPhone story, through software and accessories, as well as the Verizon network. In a note to investors, he said he believes that the platform could see 40 percent growth in the calendar year 2010.
"We continue to believe there is a 70% chance that Apple will launch the iPhone with Verizon in mid-CY10," Munster wrote. "Currently, the iPhone is available to 82m AT&T subs in the U.S.; adding Verizon would more than double the addressable market, adding 89 m U.S. customers."
Munster's 70 percent figure is borrowed from colleague Chris Larsen, Pipe Jaffray's telecom services analyst. He has forecast favorable odds for Apple to align with Verizon and launch a new handset capable with the CDMA network in 2010.
As of late, analysts have been torn on the prospect of the iPhone debuting with Verizon in 2010. Some feel a deal is unlike and too complicated to be hammered out in the next year, viewing T-Mobile and its iPhone-compatible GSM network as a more likely option. But other recent rumors suggest Apple has been in talks with chip maker Qualcomm for a potential new CDMA-compatible iPhone model.
Beyond Verizon, Munster also expects the iPhone to see rapid expansion in the realm of applications and accessories. He believes that the addition of various external accessories that could work with accompanying App Store software, or new built-in features like RFID, could add even more functionality to the device. "We've just scratched the surface," said Munster.
In November, reports surfaced that Apple built new iPhone prototypes with hardware support for sensing RFID chips. Such technology could enable a variety of technologies such as swipe payments, allowing the handset to be used to pay for items at checkout, or to gather information from kiosks or objects.
"The iPhone could feasibly become a full digital wallet, similar to other phone models in select use cases worldwide," he said. "But with Apple, the iPhone, iPod touch and iTunes accounts that each have an associated credit card, is uniquely positioned to make mobile payment a reality in the U.S. While limitations still exist in terms of payment receipt terminals at gas stations, restaurants, public transit facilities, etc., we believe that over the next several years Apple will extend the iPhone's functionality with a widely available mobile payment platform."
Tuesday, Munster issued a note stating that a recent drop in Apple's stock price is no cause for concern. As such, Piper Jaffray has remained bullish on the technology company, and has maintained its price target of $277.
Apple can maintain its "rapid pace of innovation," analyst Gene Munster of Piper Jaffray said Wednesday, as it prepares to enter the second chapter of the iPhone story, through software and accessories, as well as the Verizon network. In a note to investors, he said he believes that the platform could see 40 percent growth in the calendar year 2010.
"We continue to believe there is a 70% chance that Apple will launch the iPhone with Verizon in mid-CY10," Munster wrote. "Currently, the iPhone is available to 82m AT&T subs in the U.S.; adding Verizon would more than double the addressable market, adding 89 m U.S. customers."
Munster's 70 percent figure is borrowed from colleague Chris Larsen, Pipe Jaffray's telecom services analyst. He has forecast favorable odds for Apple to align with Verizon and launch a new handset capable with the CDMA network in 2010.
As of late, analysts have been torn on the prospect of the iPhone debuting with Verizon in 2010. Some feel a deal is unlike and too complicated to be hammered out in the next year, viewing T-Mobile and its iPhone-compatible GSM network as a more likely option. But other recent rumors suggest Apple has been in talks with chip maker Qualcomm for a potential new CDMA-compatible iPhone model.
Beyond Verizon, Munster also expects the iPhone to see rapid expansion in the realm of applications and accessories. He believes that the addition of various external accessories that could work with accompanying App Store software, or new built-in features like RFID, could add even more functionality to the device. "We've just scratched the surface," said Munster.
In November, reports surfaced that Apple built new iPhone prototypes with hardware support for sensing RFID chips. Such technology could enable a variety of technologies such as swipe payments, allowing the handset to be used to pay for items at checkout, or to gather information from kiosks or objects.
"The iPhone could feasibly become a full digital wallet, similar to other phone models in select use cases worldwide," he said. "But with Apple, the iPhone, iPod touch and iTunes accounts that each have an associated credit card, is uniquely positioned to make mobile payment a reality in the U.S. While limitations still exist in terms of payment receipt terminals at gas stations, restaurants, public transit facilities, etc., we believe that over the next several years Apple will extend the iPhone's functionality with a widely available mobile payment platform."
Tuesday, Munster issued a note stating that a recent drop in Apple's stock price is no cause for concern. As such, Piper Jaffray has remained bullish on the technology company, and has maintained its price target of $277.
Comments
ATT's Voice and Date Simultaneously, Carry Over Minutes vs. VZ better Network, which of course depends on location!
We won't know till Apple wants to us know... Till then it's more Threads like this beating this "dead horse", where people passionately argue for each carrier!
As usual, Apple is LEADING, pressing the carriers to get to LTE and beyond, and improve the pricing.. Tethering is part of Pricing!!! Will the Unlimited Data be going away, or will it be Limited? Will Unused Usage be Carried-over like Carry Over Minutes? The carriers will always find a way to charge us....
Sigh.
Verizon my @55!
Nah... let Apple introduce it to Verizon. Then we'll see how well Verizon will save face when the iPhone brings their network down to its knees too.
While I just do not see a Verizon iPhone for the CDMA reason as well as Verizon being a royal pain wanting to control and make money on everything its own way. Maybe why Apple did not go with them in the first place.?????
But it would serve Verizon customers right if Apple did sell a CDMA phone. It would be slower than the ATT version, could only do data OR voice at once, and in 2 1/2 years, it would be obsolete as Verizon is moving to 4G / LTE (what ever))
Just a thought.
en
While I just do not see a Verizon iPhone for the CDMA reason as well as Verizon being a royal pain wanting to control and make money on everything its own way. Maybe why Apple did not go with them in the first place.?????
But it would serve Verizon customers right if Apple did sell a CDMA phone. It would be slower than the ATT version, could only do data OR voice at once, and in 2 1/2 years, it would be obsolete as Verizon is moving to 4G / LTE (what ever))
Just a thought.
en
And in 2 years I will get the iPhone LTE once it is actually a viable network solution. Tell me how the iPhone 3GS won't be out of date in the same timeframe. 2 years is a lifetime in the cell phone industry, and developing a CDMA iPhone would be worth the money. However, I do not believe it will happen by the traditional June timeframe. I have a feeling we would have seen some filings with the FCC by now, but knowing Apple, they may be working with the FCC to keep it under wraps.
What I find strange is that most of you here don't seem to want it to happen. Of course the same people are against matte screens and MMS.
Could it be that some of you are AT&T stock holders and are worried you will be left holding the bag?
This was discounted just last week because of the hardware problems. Not to mention Verizon switching to LTE.
Sigh.
If Apple and Verizon wanted to do it, the hardware (to make a CDMA iPhone, it doesn't have to be a hybrid, multi-network phone to be massively successful) would be a nearly trivial problem. The ONLY thing preventing it is the two companies not agreeing to do it. Everything else is a non-issue.
If Apple and Verizon wanted to do it, the hardware (to make a CDMA iPhone, it doesn't have to be a hybrid, multi-network phone to be massively successful) would be a nearly trivial problem. The ONLY thing preventing it is the two companies not agreeing to do it. Everything else is a non-issue.
Unless VZ offers Voice and Date Simultaneously + Carry Over Minutes, like ATT, it's gonna be Apples and Oranges, with those silly commercials bragging about speed and Network! It's gotta be an Even Playing Field, not a bunch of trade offs!
When Apple in a TV Commercial here in US asked "Can your Network do that?" it was in regard to Voice and Date Simultaneously! If VZ can't deliver that, than it cripples iPhone, and why would Apple want that...?
I don't think we should be stuck on the idea that all iPhones must have the same guts worldwide to save money. A pool of 89 million potential subscribers is large enough to warrant CDMA on a separate run. Every other handset maker uses multiple carriers for an individual device and Apple will too in 2010. For Apple to ignore the popularity of Verizon would be a gross misrepresentation of their shareholders.
and would not are sully their products on an inferior CDMA carrier that from out of the box would limit what it does out of the box, not simultaneous data/voice after making commercials for it...could imagine the verizon customer who waited for years for the iphone only to find out, if they want a fully featured one they would still have to go to ATT...LOL
besides, 89 million compared to lets compare one country...China?...try like almost a billion potential customers...India, over half a billion customers, without having to change anything other than software/downloadable language packs....hmm...
While I just do not see a Verizon iPhone for the CDMA reason as well as Verizon being a royal pain wanting to control and make money on everything its own way. Maybe why Apple did not go with them in the first place.?????
This is an old argument that needs to be put to bed. Verizon is not controlling anything with the Android phones so I expect they won't with the iPhone either.
But it would serve Verizon customers right if Apple did sell a CDMA phone. It would be slower than the ATT version, could only do data OR voice at once, and in 2 1/2 years, it would be obsolete as Verizon is moving to 4G / LTE (what ever))
Which is why Apple is talking to Qualcomm since they have a chip set that does all versions of GMS, CDMA and LTE. That way they make one phone, they can support both AT&T and Verizon as they switch to LTE. FYI, Verizon seems to be ahead of AT&T in deploying LTE and should have several major metropolitan areas online by the end of next year.
This was discounted just last week because of the hardware problems. Not to mention Verizon switching to LTE.
Discounted by who? If they use the Qualcomm chip set all of this is totally possible.
2-mode chips (HSDPA/CDMA) aren't a problem today.
As for the Verizon marketing plan, they have said very little that would look like a contradiction if they started offering the iPhone. Likewise, ATT seems to actually be making improvements to their network (at least in the areas I am), so they will try and blunt an effort by VZ to take their existing customers.
The biggest issue is what does VZ think they will gain by going with the iPhone in a non-exclusive contract. I would naively say 10MM subscribers...
Some places just don't make sense for one carrier or another. Was in the basement of a building today that had full Verizon coverage but nothing from anybody else. Verizon has multiple cell sites in the building, and everybody else is locked out unless you are at a window. The same used to be true for Nextel... haven't been to a place where ATT pulled off the same exclusive.