Apple expected to hold event by Valentine's Day to announce Verizon iPhone
Apple is expected to hold an event "very soon," perhaps by Valentine's Day on Feb. 14, 2011, to unveil a new CDMA version of the iPhone compatible with U.S. carrier Verizon's network.
In a report issued Wednesday evening by Bloomberg Businessweek, the alleged coming debut of the iPhone on Verizon is portrayed as an "enormous problem" for AT&T, the current exclusive carrier of the iPhone in the U.S. While AT&T has had sole access to the iPhone since 2007, problems with its network have caused bad press, including a recent reader poll from Consumer Reports ranking AT&T the worst carrier in America.
"Verizon enjoys a reputation for reliability," author Peter Burrows wrote. "AT&T is notorious for dropping calls, especially in densely populated places like New York and San Francisco where iPhones are most common and cell towers get loaded."
The report said that Apple would hold one of its own "splashy product introductions to announce a new version of the iPhone that work's on Verizon's network," and said that event would "maybe" come by Valentine's Day.
Some have speculated that Apple would instead allow Verizon to announce the product at the Consumer Electronics Show in early January, an uncharacteristic move for the typically controlling iPhone maker. But the report specifically stated that a CES unveiling is not in the plans.
"Apple's introduction of an iPhone for use on Verizon's network will come sometime after the Consumer Electronics Show in Las Vegas in early January, according to a person familiar with Apple's plans who is not authorized to discuss them publicly," Burrows wrote.
But while the apparently loss of exclusivity on the iPhone is cause for concern for AT&T, the report also suggested that Verizon could experience its own growing pains when Apple's smartphone arrives on its network.
"At least initially, Verizon's iPhone may have weaknesses compared to AT&T's," the report said. "The expense and hassle of changing carriers could also work to AT&T's advantage."
It also noted that iPhone customers may be less likely to switch from AT&T if they are still under contract, as the carrier upped its termination fee to $325 in May of this year. The carrier also offered early upgrades for some iPhone 4 buyers whose contracts had not expired, locking them in to another two full years.
In a report issued Wednesday evening by Bloomberg Businessweek, the alleged coming debut of the iPhone on Verizon is portrayed as an "enormous problem" for AT&T, the current exclusive carrier of the iPhone in the U.S. While AT&T has had sole access to the iPhone since 2007, problems with its network have caused bad press, including a recent reader poll from Consumer Reports ranking AT&T the worst carrier in America.
"Verizon enjoys a reputation for reliability," author Peter Burrows wrote. "AT&T is notorious for dropping calls, especially in densely populated places like New York and San Francisco where iPhones are most common and cell towers get loaded."
The report said that Apple would hold one of its own "splashy product introductions to announce a new version of the iPhone that work's on Verizon's network," and said that event would "maybe" come by Valentine's Day.
Some have speculated that Apple would instead allow Verizon to announce the product at the Consumer Electronics Show in early January, an uncharacteristic move for the typically controlling iPhone maker. But the report specifically stated that a CES unveiling is not in the plans.
"Apple's introduction of an iPhone for use on Verizon's network will come sometime after the Consumer Electronics Show in Las Vegas in early January, according to a person familiar with Apple's plans who is not authorized to discuss them publicly," Burrows wrote.
But while the apparently loss of exclusivity on the iPhone is cause for concern for AT&T, the report also suggested that Verizon could experience its own growing pains when Apple's smartphone arrives on its network.
"At least initially, Verizon's iPhone may have weaknesses compared to AT&T's," the report said. "The expense and hassle of changing carriers could also work to AT&T's advantage."
It also noted that iPhone customers may be less likely to switch from AT&T if they are still under contract, as the carrier upped its termination fee to $325 in May of this year. The carrier also offered early upgrades for some iPhone 4 buyers whose contracts had not expired, locking them in to another two full years.
Comments
For Verizon's sake it should come before Valentines day. An iPhone (and the phone plan payments forever...) is a perfect gift for that day.
Nah, some chocolate and lingerie would be more gratifying.
I can buy anyone an iPhone any day of the year. Besides, she has a cellphone. And it's not forever anyhow. The contract expires in two years.
"Yeah babe, you're good for two years. Then I might upgrade, get the younger, sexier model. She'll be thinner too."
At that point, I wonder what excuses Verizon's executives will come up in order to point the finger somewhere else.
Verizon will most likely place more restrictive data-caps on iPhone plans so that users will be so paranoid about using it for fear they will get smacked with over-the-top data charges.
http://www.verizonwireless.com/ReturnPolicy.shtml
I think Verizon's network will buckle under the Hummer-bandwidth-eating iPhone load just as much, if not more, that AT&T's network.
At that point, I wonder what excuses Verizon's executives will come up in order to point the finger somewhere else.
Verizon will most likely place more restrictive data-caps on iPhone plans so that users will be so paranoid about using it for fear they will get smacked with over-the-top data charges.
I'm not so sure about this.
If the iPhone stays on 3G frequencies until the iPhone 5 is released and other smartphones on Verizon utilize the LTE frequencies, there may be less impact than anticipated... at least until the LTE iPhone is released next June/July.
Time will tell.
I think Verizon's network will buckle under the Hummer-bandwidth-eating iPhone load just as much, if not more, that AT&T's network.
At this point I can?t imagine the iPhone being the unexpected data weight that it was to AT&T in 2007. They?ve had plenty of time to plan for it, have plenty of app phones using copious amounts of data, and have the advantage of seeing AT&T?s network buckle under the demand of the iPhone. I?d think in 2007 they would have crumbled like AT&T but could a major carrier be that incompetent in 2011?
The mythical verizon iPhone will be launched in june/july like all other iPhone launches, it it exists at all.
"Yeah babe, you're good for two years. Then I might upgrade, get the younger, sexier model. She'll be thinner too."
Okay, you got me. I LOL'ed.
Check your data throughput with Speedtest.net and then have one of your friends with a Verizon phone check their speed (Speedtest runs under Android and iPhone).
Bet ATT will be 2-4 times faster than Verizon. I usually get between 1.5 and 2.0 Mbps whereas Verizon is usually 0.4 to 0.7 Mbps.
Bottom line: I'm sticking with ATT.
no need to worry about AT&T... they will reach record profits from early termination fees.
lulz.
This would be a killer-app for the AppleTV, and would enable a ton of cord-cutting with cable companies. The only thing that ever makes me want to subscribe to cable is NFL, maybe ESPN (a disney property).
Just though I'd drool about that publicly.
PS -- that would make a kickass Superbowl advertisement!
Nah, some chocolate and lingerie would be more gratifying.
Agreed. Yum + Fun.
"Yeah babe, you're good for two years. Then I might upgrade, get the younger, sexier model. She'll be thinner too."
LOL
Nice. Someone could make a funny video out of that concept...
Would Apple have one special event for a CDMA-based iPhone and the next iPad, or hold separate events about a month apart? I say the latter.
At this point I can?t imagine the iPhone being the unexpected data weight that it was to AT&T in 2007. They?ve had plenty of time to plan for it, have plenty of app phones using copious amounts of data, and have the advantage of seeing AT&T?s network buckle under the demand of the iPhone. I?d think in 2007 they would have crumbled like AT&T but could a major carrier be that incompetent in 2011?
I don't really think it was the original iPhone (2007) that caused the data crush; it was a 2.5G GSM/EDGE handset after all. It really came when Apple opened the App Store with the iPhone 3G in 2008. AT&T probably thought they had excess bandwidth on their newly deployed 3G network, but they weren't expecting the App Store.
That said, Verizon must have a pretty good idea of what the average iPhone user consumes in 3G data each month. Have they built out their network to handle such an increase in data use? I have no idea, but looking at the most recent Consumer Reports cellular customer satisfaction survey, they made zero headway in improving the satisfaction of their existing customers. That does not bode particularly well for Verizon.
Apple would probably make separate announcements for a CDMA iPhone and a new iPad. They would get more publicity that way, plus a staggered release would probably ease up a bit on the supply chain, particularly on silicon parts like the CPU/GPU and NAND flash memory chips. The screens are different, but many of the other internal components would be similar, and silicon supply is a common bottleneck.
Nah, some chocolate and lingerie would be more gratifying.
I can buy anyone an iPhone any day of the year. Besides, she has a cellphone. And it's not forever anyhow. The contract expires in two years.
"Yeah babe, you're good for two years. Then I might upgrade, get the younger, sexier model. She'll be thinner too."
LMAO great post
Verizon's ETF is $350 (not $325) for "advanced devices" and $175 for others.
It also noted that iPhone customers may be less likely to switch from AT&T if they are still under contract, as the carrier upped its termination fee to $325 in May of this year. The carrier also offered early upgrades for some iPhone 4 buyers whose contracts had not expired, locking them in to another two full years.
Reading comprehension!
This explains AT&T's "generosity" regarding early upgrades.
Its like making a deal with the Devil.