It is my personal belief that the iPhone may finally be making its way to Verizon in January 2011. It makes perfect sense from a business standpoint for Apple to make a CDMA version of the iPhone. Unfortunately, the market has become saturated and there can be little growth in the future unless Apple can get another source of income. While the advanced sales of the iPhone 4 in the U.S. have been great, the simple fact is that those were customers upgrading from the 3G taking advantage of AT&T's "generous" upgrade opportunity.
With all the talk about both AT&T and Verizon making the move to LTE, both carriers will still need a back-up. I can remember when AT&T lost 3G service for two days in my neck of the woods and the system had to revert back to the 2G system. Although CDMA is on the way out, it's not going to be clicked off overnight as it will have to serve as a back-up. I'm not saying that Verizon is perfect, but it will make a good addition to Apple's sales.
If apple is smart they should go with sprint but build a phone that uses their 4G network and also build in a hotspot. So like the evo. Android is gaining ground at sprint and this would take that advantage away. I live in a 4G city and I got to tell you, after playing with an evo 4G demo phone at a sprint store I'm so stoked. Android phones would be great at sprint if they had better battery life and if the android marketplace had the same apps the iPhone has. That is android's biggest issue. It's still very useable and with froyo android phones on sprint with 4G and their awesome calling plans pose as very strong competition to apple
I have never seen or used android before getting to play with this phone. If they could clean up the GUI, Add OS support for more media file formats like .pls , make the GUI the same across the board and really get iPhone app devs to port all their apps to android, with sprint's 4G service and hotspot and add full flash support and you will finally have an iPhone killer. I was going to buy an iPhone but now I am seriously considering a sprint 4G android phone. With verizon you get another nickel and dime cellular Nazi albeit with a better network for reception.
iPads with 4g support would also be cool at sprint.
The bozos at Gizmodo didn't even lift the EMI shielding from the Redwood City iPhone prototype. Unless Apple had a neon-colored sticker that said "this is a CDMA phone", Gizmodo would have been clueless.
Actually it would be really easy to tell. The absence of a SIM card would've been a sure sign. BTW Apple doesn't need to build a totally new phone. RIM has been making "world phones" for quite some time now. They have both CDMA and quad band GSM radios in them. The Storm is an example of one. The very first videos of the Storm2 had it working over ATT not VZW.
At a 20% profit margin and a (very conservative) P/E of 16x, that's over $30B in market cap, or an additional ~$33 per share. (Btw, the CDMA 1x is heavily concentrated in countries that wealthier than the global average; that's nothing to scoff at either).
No one with a financial education prices a stock based on PE. Earnings are way way too easy to manipulate and often do not represent the actual cash flow available to the shareholder. P/E numbers are how smart Wall Street people and their CNBC buddies scam average investors. The real value of the stock is based on the future cash flows, and the expectation that an LTE iPhone wil be available on multiple carries sometime around 2012 has been long built into the Apple stock price. Moving the date up a year will increase the value of the stock, but not by $33 per share.
I would estimate the profit potential of a Verizon CDMA phone, prior to the LTE phone would be in the $1b-$2b range, but that could be much lower if they have to reduce GSM phone production in order to get those sales. Keep in mind production seems to be limited by screen supply so until Apple can produce GSM iPhones faster than they can sell them worldwide, there is not a single penny of extra profit to be made with a Verizon phone.
Maybe that's not such a bad thing! After all....maybe Verizon customers actually want to advertise that their iPhone can stick through a 10 minute call without dropping 3 times! And that Verizon logo is the "I can make calls!" badge...
In all seriousness, every single other carrier in the world has agreed to not putting their logo on the iPhone. I doubt this is a "major" sticking point for VZ.
I don't know, they had to be dragged kicking and screaming into allowing wifi on phones. Verizon seems to be pretty opinionated and very very stuck on their way of doing things.
Apple and Verizon are 2 extremely stubborn companies, doesn't surprise me that they have gone so long without being able to strike any sort of deal.
Comments
With all the talk about both AT&T and Verizon making the move to LTE, both carriers will still need a back-up. I can remember when AT&T lost 3G service for two days in my neck of the woods and the system had to revert back to the 2G system. Although CDMA is on the way out, it's not going to be clicked off overnight as it will have to serve as a back-up. I'm not saying that Verizon is perfect, but it will make a good addition to Apple's sales.
I have never seen or used android before getting to play with this phone. If they could clean up the GUI, Add OS support for more media file formats like .pls , make the GUI the same across the board and really get iPhone app devs to port all their apps to android, with sprint's 4G service and hotspot and add full flash support and you will finally have an iPhone killer. I was going to buy an iPhone but now I am seriously considering a sprint 4G android phone. With verizon you get another nickel and dime cellular Nazi albeit with a better network for reception.
iPads with 4g support would also be cool at sprint.
Has no one seen this??
That would be incredibly easy to fake..
Correct.
The bozos at Gizmodo didn't even lift the EMI shielding from the Redwood City iPhone prototype. Unless Apple had a neon-colored sticker that said "this is a CDMA phone", Gizmodo would have been clueless.
Actually it would be really easy to tell. The absence of a SIM card would've been a sure sign. BTW Apple doesn't need to build a totally new phone. RIM has been making "world phones" for quite some time now. They have both CDMA and quad band GSM radios in them. The Storm is an example of one. The very first videos of the Storm2 had it working over ATT not VZW.
At a 20% profit margin and a (very conservative) P/E of 16x, that's over $30B in market cap, or an additional ~$33 per share. (Btw, the CDMA 1x is heavily concentrated in countries that wealthier than the global average; that's nothing to scoff at either).
No one with a financial education prices a stock based on PE. Earnings are way way too easy to manipulate and often do not represent the actual cash flow available to the shareholder. P/E numbers are how smart Wall Street people and their CNBC buddies scam average investors. The real value of the stock is based on the future cash flows, and the expectation that an LTE iPhone wil be available on multiple carries sometime around 2012 has been long built into the Apple stock price. Moving the date up a year will increase the value of the stock, but not by $33 per share.
I would estimate the profit potential of a Verizon CDMA phone, prior to the LTE phone would be in the $1b-$2b range, but that could be much lower if they have to reduce GSM phone production in order to get those sales. Keep in mind production seems to be limited by screen supply so until Apple can produce GSM iPhones faster than they can sell them worldwide, there is not a single penny of extra profit to be made with a Verizon phone.
Has no one seen this??
Here's the link.
http://www.mobilecrunch.com/2010/06/...-pipe-variety/
Maybe that's not such a bad thing! After all....maybe Verizon customers actually want to advertise that their iPhone can stick through a 10 minute call without dropping 3 times! And that Verizon logo is the "I can make calls!" badge...
In all seriousness, every single other carrier in the world has agreed to not putting their logo on the iPhone. I doubt this is a "major" sticking point for VZ.
I don't know, they had to be dragged kicking and screaming into allowing wifi on phones. Verizon seems to be pretty opinionated and very very stuck on their way of doing things.
Apple and Verizon are 2 extremely stubborn companies, doesn't surprise me that they have gone so long without being able to strike any sort of deal.