Apple Readies Verizon iPhone

Demiurge

Apple Readies Verizon iPhone

YUKARI IWATANI KANE And TING-I TSAI

AT&T Inc. is about to lose its lock on the iPhone.

Apple Inc. is making a version of its iPhone that Verizon Wireless will sell early next year, according to people familiar with the matter, ending an exclusive deal with AT&T and sharpening the competition with Google Inc.-based phones.

While Apple is on track to sell 40 million iPhones across the globe this year, the touchscreen handset is facing pressure in the U.S. from phones running Google's Android software, which have been heavily promoted by Verizon Wireless, the biggest U.S. carrier by subscribers.

Apple plans to begin mass producing the new iPhone by the end of the year, and it would be released in the first quarter of 2011, these people said. The phone would resemble the iPhone 4 currently sold by AT&T, but would be based on an alternative wireless technology used by Verizon, these people said.

The new iPhone spells the end of the exclusive arrangement that AT&T has had since 2007, when Apple Chief Executive Steve Jobs introduced the original iPhone. Since then, the iPhone fueled much of the AT&T's growth.

Verizon Wireless has been meeting with Apple, adding capacity and testing its networks to prepare for the heavy data load by iPhone users, according to one person familiar with the matter. The carrier is seeking to avoid the kind of public-relations hit that AT&T took when the boom in data-hungry iPhones overtaxed its network, especially in New York and San Francisco.

The move would give consumers more choice in terms of networks and perhaps pricing options. Rightly or wrongly, a number of consumers believe Verizon Wireless's network to be superior, and Verizon still offers unlimited Internet data plans. AT&T this summer launched new plans with lower prices but monthly limits on data use.

Apple is facing increasing pressure to find new avenues of growth in the U.S. market as most AT&T customers who wanted the iPhone have now bought them. Meanwhile, phones running Google's software—built by Motorola Inc., HTC Corp. and others—have surged this year.

Android smartphone subscribers in the U.S. reached 10.9 million as of August, from 866,000 a year earlier, according to comScore Inc., a market research firm. In comparison, there were 13.5 million iPhone subscribers at the end of August, up from 7.8 million last year, comScore says.

Separately, Apple is also developing a new iPhone model, said people briefed on the phone. One person familiar said the fifth-generation iPhone would be a different form factor than those that are currently available. It was unclear how soon that version would be available to Verizon or other carriers.

At a press conference Wednesday, Verizon Communications Inc. President Lowell McAdam declined to comment on whether his company would soon sell an iPhone. "At some point our business interests are going to align," he said, referring to Apple. "I fully expect it, but I don't have anything to say."

A spokeswoman for Apple declined to comment. The Wall Street Journal in March reported on Apple's plans to build an iPhone that works on code division multiple access, or CDMA, technology used by carriers like Verizon Wireless and Sprint Nextel Corp.

Toni Sacconaghi, a Sanford Bernstein analyst, estimates Verizon could add more than 10 million more U.S. iPhone customers, adding it could help stem the rapid adoption of devices that run Android

Many Verizon customers have been clamoring for the iPhone for years. "This is the longest running tease in the history of consumer products," said Garret Bedrin, a 31-year-old Apple fan in Glen Rock, N.J., who plans to buy a Verizon iPhone as soon as it's available. "As loyal as I am to Apple, I won't leave Verizon," he said.

John Donovan, AT&T's chief technology officer, wouldn't comment on whether AT&T is losing exclusivity next year, but said iPhone buyers would have reason to chose his network over Verizon's. AT&T's network lets users browse the Web while making calls, while Verizon's can't, he said.

"It's not like we sit around and don't prepare for the future," Mr. Donovan said in an interview Wednesday, noting AT&T also has compelling offerings in Android phones, as well as Research In Motion Ltd.'s new BlackBerry Torch.

AT&T has been taking steps all year to answer concerns about a loss of exclusivity, adding new phones to its lineup. It has also said more than four-fifths of its contract subscribers are on family or business plans, which make switching to a new carrier more burdensome.

"It's not clear what the exact impact will be, but it will be significant and it won't be good," said Ed Snyder, an analyst for Charter Equity Research. He added that he expected Verizon and Apple to make a big push for the new iPhone, overshadowing Motorola's Droid phones.

Apple's CDMA iPhone is being made by Pegatron Technology Corp., the contract manufacturing subsidiary of Taiwan's Asustek Computer Inc., said the people briefed on the matter. A spokesman for Pegatron declined to comment.

Apple originally decided against developing a phone for Verizon to focus on a version based on GSM, a more prevalent mobile technology used by AT&T and most mobile operators in the world, people familiar with the decisions have said.

Verizon, in those earlier discussions, balked at Apple's requirement that Verizon not allow its retail partners to sell the phone, people familiar with the discussion said at the time. Verizon also declined to give up its ability to sell content like music and videos through its proprietary service, these people said.

This time around, Apple considered a dual-mode phone that would let users roam on GSM-based networks, one of the people briefed said. But the company ultimately went with a device that would only work on a CDMA network. Qualcomm Inc. is providing a key chip set for the new iPhone, according to a person familiar with the matter. A spokeswoman for Qualcomm declined to comment.

http://online.wsj.com/article/SB10001424052748703735804575536191649347572.html?ru=yahoo&mod=yahoo_hs

I know, just rumors.

thuffman03

These rumors keep popping up. The day that Verizon has the IPhone for sale on it's web site is the day I will believe it will happen.

BTW, I have no intention on every buying an IPhone. Over hyped toy IMO.

bobman1235

thuffman03 wrote: »

These rumors keep popping up. The day that Verizon has the IPhone for sale on it's web site is the day I will believe it will happen.

Yup. I talked to someone who works for Verizon the other day who insisted this must be false because he'd have heard about it, but... we'll see.

BTW, I have no intention on every buying an IPhone. Over hyped toy IMO.

I'm sure they're really crying over the loss of your business.

bigaudiofanatic

I have been waiting and waiting and waiting for this to come to verizon until I just said f it and bought a droid incredible. I love my droid and will probably never get the iphone for verizon unless something really happens that will make me get it.

bigaudiofanatic

"This is the longest running tease in the history of consumer products," said Garret Bedrin, a 31-year-old Apple fan in Glen Rock, N.J., who plans to buy a Verizon iPhone as soon as it's available. "As loyal as I am to Apple, I won't leave Verizon," he said.

Indeed

mole'

Verizon + Droid = WIN!!!

iPhone is overrated IMO

AsSiMiLaTeD

I'll believe it when I see it...

mrbiron

Verizon + Droid = WIN!!!

iPhone is overrated IMO

BINGO!
I wouldn't just say iphone...i'd include the ENTIRE apple product line.
At&t can have their apple....we'll keep droid

silvertuner

ill keep my Droid. the iphone is nice, but certainly not the greatest phone on the market. my roommate has the iphone, yet would rather have my droid x just from the little bit he's used it. heh

mole'

mrbiron wrote: »

BINGO!
I wouldn't just say iphone...i'd include the ENTIRE apple product line.
At&t can have their apple....we'll keep droid

we have a winner here!!!!!

Knucklehead

here we go............

http://www.usatoday.com/money/industries/technology/2011-01-09-verizon-iphone_N.htm

AsSiMiLaTeD

If this is true then I'll at least consider switching over to Verizon, bearing a few things in mind:

1 - I don't think the iPhone is going to be 4G. This isn't a big deal for some people, and won't really matter to my wife, who will be using the iPhone, but worth noting.
2 - Last time I checked, you still can't talk and do data at the same time on Verizon at the same time. Does anyone know if that's still the case? That is a deal breaker for me, and would absolutely prevent me from switching.
3 - AT&Ts networks gets bogged down from time to time apparently. What does everyone think is going to happen to Verizon if millions of people switch from AT&T? I'd almost want to stay with AT&T to see how much their network improves when millions of people do a mass exodus to Verizon.

Toolfan66

Iphone haters!!!!lol

I love my Iphone I also like the Droid,I think they both have there pros and cons, Combine them and you have one bad **** phone...

As far as overrated I will agree 4G is overrated...

BIZILL

dang. i'm still waiting to get some 4g love in AZ. i'm paying sprint's $10 "premium" for the htc evo but don't even have 4g available. sucks, but it's part of having the latest and greatest.

if i had service through verizon i'm not sure if i'd want the droid x or the iphone.

Knucklehead

AsSiMiLaTeD wrote: »

If this is true then I'll at least consider switching over to Verizon, bearing a few things in mind:

1 - I don't think the iPhone is going to be 4G. This isn't a big deal for some people, and won't really matter to my wife, who will be using the iPhone, but worth noting.
2 - Last time I checked, you still can't talk and do data at the same time on Verizon at the same time. Does anyone know if that's still the case? That is a deal breaker for me, and would absolutely prevent me from switching.
3 - AT&Ts networks gets bogged down from time to time apparently. What does everyone think is going to happen to Verizon if millions of people switch from AT&T? I'd almost want to stay with AT&T to see how much their network improves when millions of people do a mass exodus to Verizon.

I use my Blackberry to tether to my laptop when im in the field, it is 3g and your right, I cant talk and surf the web at the same time. My company is getting us the 4g aircards so I wont have to use my BB to tether...kind of a PIA anyways.

cokewithvanilla

BIZILL wrote: »

if i had service through verizon i'm not sure if i'd want the droid x or the iphone.

for me the choice would be clear... a device with a 4.3 inch screen, to me, is less of a phone than it is a media device. I actually think the iphone is a bit big, since it practically requires a case.

mantis

I find it all long winded. I'm so tired of these rumors and staying as such. The day it happens I'll take it into consideration.

Until then

dorokusai

My iPad is on Verizon....what on earth makes you think the iPhone isn't coming? Lol.

exalted512

dorokusai wrote: »

My iPad is on Verizon....what on earth makes you think the iPhone isn't coming? Lol.

I dont think people doubt its coming. I just think people are skeptical when anyone other than verizon and apple put a time line on it.
-Cody

BIZILL

has ces started yet or does it start this workweek? i just upgraded my phone and have 30 days to change my mind. i'm curious to see if verizon or sprint will sport anything new that is worthwhile.

bobman1235

AsSiMiLaTeD wrote: »

2 - Last time I checked, you still can't talk and do data at the same time on Verizon at the same time. Does anyone know if that's still the case? That is a deal breaker for me, and would absolutely prevent me from switching.

A friend of mine has a Droid Incredible on Verizon, and we tested this out recently. He called me (while I was still in the room) and we were able to open up the browser and browser while still one the phone call. I really don't think i'ts a limitation still.


My biggest concern with the iPhone on Verizon is that Verizon can't leave a God damned phone alone. They need to put all of their crap on it and cripple random features. I think Apple is a big enough draw for them that they could have been talked out of it, but time will tell.

txcoastal1

It was kinda weird that Verizon did not mention a single word about Iphone at CES...I think there will be alot more to come about mid year of new cell phone tech and upgrades.

ryanjoachim

BIZILL wrote: »

has ces started yet or does it start this workweek? i just upgraded my phone and have 30 days to change my mind. i'm curious to see if verizon or sprint will sport anything new that is worthwhile.

Isn't CES over now?

dorokusai

CES is over.

bruss

BIZILL wrote: »

has ces started yet or does it start this workweek? i just upgraded my phone and have 30 days to change my mind. i'm curious to see if verizon or sprint will sport anything new that is worthwhile.

we picked up an EVO and there is 4g here in KC and it is quite noticible. I dig the evo

bigaudiofanatic

Even with the iphone coming soon I am more interested in the thunderbolt!!!!

bigaudiofanatic

Well lets see what happens at 11 am today

bigaudiofanatic

Here it is!!!!!


http://www.apple.com/

bobman1235

Reading the coverage, I honestly can't believe the "no data and voice at the same time" restriction still exists on Verizon. For a phone like the iPhone that's a really big deal; I don't "talk" on my phone all that often but it definitely happens that I am talking and want to use the internet too.

AsSiMiLaTeD

That's what I've been wondering Bob, where did you read that?

bigaudiofanatic

When 4g is more than a few cities than yes it will be possible.