Sam OliverIt 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.
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55 Comments
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.
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.
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.
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.
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.