Verizon, Apple iPhone talks continue toward possible 2011 launch
A potential deal between Apple and Verizon -- which could result in a CDMA iPhone capable of simultaneous voice and data -- is still being ironed out, according to one Wall Street analyst.
Shaw Wu with Kaufman Bros. issued a note to investors on Monday, in which he said he expects Apple to expand the iPhone to another carrier in the U.S. next year. Apple needs this, he said, to maintain high growth, as the company's smartphone nears saturation on the AT&T network.
The current front-runner is Verizon, which is said to be in talks with Apple for a "SVDO" iPhone which would allow both voice and data at the same time, something not possible with a traditional CDMA phone on Verizon's network.
While Wu believes that the iPhone will eventually come to Verizon, that could happen as late as 2012, he said, if Apple decided instead to go another route: both T-Mobile and Sprint.
"It is notable that signing up both T-Mobile USA and Sprint would almost be the equivalent of Verizon (in terms of subscribers)," he said. "For point of reference, AT&T has 90 million wireless subscribers compared to 93 million at Verizon, 48 million at Sprint, and 34 million at T-Mobile USA."
Wu said sources have indicated to him that important details are still being ironed out between Verizon and Apple, including technology and economics. But while the companies are in talks, he said it would be "premature" to rule out T-Mobile and Sprint.
However, the growth of Android on the Verizon network also provides Apple with an incentive to make the iPhone available on the carrier, he said. Making the iPhone available to Verizon customers would be the best way to address the growing presence of Android phones, Wu wrote.
While Apple and Verizon are said to be eying SVDO for the iPhone for now, the companies are said to be viewing that option as an interim device until a full-fledged long-term evolution (LTE) 4G phone debuts in a few years.
"From AAPL's perspective, the debate is whether it makes sense to roll out an interim CDMA iPhone sometime in 2011 or perhaps wait until LTE becomes more available in 2012," Wu wrote.
Reports of a deal between Verizon and Apple are, of course, nothing new, and have persisted for years. But recently, a number of rumors have pointed toward a January 2011 launch for a CDMA iPhone available on the largest wireless network in the U.S., Verizon.
Apple has reportedly gone as far as to build early CDMA iPhones that are currently in the engineering verification test phase. That is one step below device verification test, or DVT status, which takes place right before production. The iPhone 4 handset that was found in a bar this year was a DVT handset.
Shaw Wu with Kaufman Bros. issued a note to investors on Monday, in which he said he expects Apple to expand the iPhone to another carrier in the U.S. next year. Apple needs this, he said, to maintain high growth, as the company's smartphone nears saturation on the AT&T network.
The current front-runner is Verizon, which is said to be in talks with Apple for a "SVDO" iPhone which would allow both voice and data at the same time, something not possible with a traditional CDMA phone on Verizon's network.
While Wu believes that the iPhone will eventually come to Verizon, that could happen as late as 2012, he said, if Apple decided instead to go another route: both T-Mobile and Sprint.
"It is notable that signing up both T-Mobile USA and Sprint would almost be the equivalent of Verizon (in terms of subscribers)," he said. "For point of reference, AT&T has 90 million wireless subscribers compared to 93 million at Verizon, 48 million at Sprint, and 34 million at T-Mobile USA."
Wu said sources have indicated to him that important details are still being ironed out between Verizon and Apple, including technology and economics. But while the companies are in talks, he said it would be "premature" to rule out T-Mobile and Sprint.
However, the growth of Android on the Verizon network also provides Apple with an incentive to make the iPhone available on the carrier, he said. Making the iPhone available to Verizon customers would be the best way to address the growing presence of Android phones, Wu wrote.
While Apple and Verizon are said to be eying SVDO for the iPhone for now, the companies are said to be viewing that option as an interim device until a full-fledged long-term evolution (LTE) 4G phone debuts in a few years.
"From AAPL's perspective, the debate is whether it makes sense to roll out an interim CDMA iPhone sometime in 2011 or perhaps wait until LTE becomes more available in 2012," Wu wrote.
Reports of a deal between Verizon and Apple are, of course, nothing new, and have persisted for years. But recently, a number of rumors have pointed toward a January 2011 launch for a CDMA iPhone available on the largest wireless network in the U.S., Verizon.
Apple has reportedly gone as far as to build early CDMA iPhones that are currently in the engineering verification test phase. That is one step below device verification test, or DVT status, which takes place right before production. The iPhone 4 handset that was found in a bar this year was a DVT handset.
Comments
People on Verizon must think I'm lying when I tell them I've never dropped a call on AT&T with 4 iPhones, nor have ever had a complaint about service. What frigging idiots people are.
However, the growth of Android on the Verizon network also provides Apple with an incentive to make the iPhone available on the carrier, he said. Making the iPhone available to Verizon customers would be the best way to address the growing presence of Android phones, Wu wrote.
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Android is no competition to Apple. It is all fragmented and only geeks buy it.
I will laugh very loudly if they forgo Verizon altogether. All these stupid people that I know that think their service on Verizon is so great, that they've held onto it the last four years and even renewed their contracts, all the while complaining about the sh*t phone they own, and wishing they had an iPhone. Sorry, but I'd rather buy the phone I want and be done with, rather than spend 4 (or more) years wishing I had a different phone, for no reason other than rumors of poor service.
People on Verizon must think I'm lying when I tell them I've never dropped a call on AT&T with 4 iPhones, nor have ever had a complaint about service. What frigging idiots people are.
Don't think you're lying, but it depends on what city you live in. Just ask those that live in San Francisco or New York. I live in Cincinnati, OH, and I used to have AT&T, and can tell you that I've dropped calls and had places just over the Indiana border where I had no service at all. Don't know how much their service has improved in my area in the last few years, but my own experience has been immensely better with Verizon - so much so that I'd rather use a Droid and Verizon than an iPhone and AT&T. Personally, I'm waiting and hoping for a Verizon - Apple deal. I can move to the Droid now, but have chosen to wait out until the early part of 2011 to see what becomes of all this CDMA iPhone/Verizon rumor stuff. All I can do is wait and see at this point in time.
My guess is that Verizon's chance of getting an iPhone is now about 15-20%.
They say that Apple and AT&T are getting near the saturation point ? that's not good, as most iPhones users won't purchase a new iPhone just cuz, and Apple needs / wants to increase the number of folks walking around with an iPhone, and that ONLY happens with added carriers.
So, will it happen, yes! When is the real question, and with whom?
Skip
PS I say, blow the doors wide open, and offer a iPhone for any carrier willing to pay the price, then watch the numbers go through the roof!
Android is no competition to Apple. It is all fragmented and only geeks buy it.
Huh... From the massive sales its having worldwide, it seems the whole world must be geeks then.
It's always 'next year' ... sigh.
That's no worse than being always 'next week'
Huh... From the massive sales its having worldwide, it seems the whole world must be geeks then.
I'm not a fan, but would agree. My son, daughter and 4 other workers wanted iPhones until they looked at the new evo or whatever in hell it's called. Not to mention the deal the company got. 5 top of the line phones, with unlimited everything, web access and more from Sprint for $198.00 a month, for ALL 5 phones.
Sucks not being able to get 5 iPhones for that price, but these phones are incredible.
Skip
PS The service (Maine) and coverage is ok, but not as good as Verizon
Well, if Shaw Wu is predicting this, then it is less likely to actually happen.
My guess is that Verizon's chance of getting an iPhone is now about 15-20%.
Jeez... Is he still employed? Talk about clueless managers. Where are his?
That's no worse than being always 'next week'
Either way the metaphor works. Perhaps I should have said 'manjana' to emphasize the generalized intent of my meaning
Huh... From the massive sales its having worldwide, it seems the whole world must be geeks then.
SendMe is a ClickBait Troll.
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It's always 'next year' ... sigh.
Every few years (over the last 15 or so) I have seen articles talking about how widespread consumer holographic storage is "just 5 years away". Everything is ALWAYS next year
I'm not a fan, but would agree. My son, daughter and 4 other workers wanted iPhones until they looked at the new evo or whatever in hell it's called. Not to mention the deal the company got. 5 top of the line phones, with unlimited everything, web access and more from Sprint for $198.00 a month, for ALL 5 phones.
Sucks not being able to get 5 iPhones for that price, but these phones are incredible.
Skip
PS The service (Maine) and coverage is ok, but not as good as Verizon
What did they pay for the phones, themselves.
We have 2 iPhones-- iP4 and 3GS ($299 each) and 3 kiddie-phones (Avg $40 each).
The 2 iPhones have 2GB data, the others none! All have unlimited messaging.
Our bill is about $220 per month.
We have about $800 up front costs for all the phones, activation, taxes, etc.
The kids each have an older unactivated iPhone as an iPod Touch / Game Player, etc.
So, if anyone wants to sell me service for 5 iPhones, unlimited everything at $198/month... I'd play!
I'd even sell the existing iPhones and buy new ones... hmmm....
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I thought it was impossible to do voice/data at the same time on CDMA?
http://www.wmexperts.com/cdma-develo...data-same-time
SVDO is an upgrade for CDMA. This article is from a year ago tho, not sure which carriers have opted to use it to date.