Verizon Unlikely to Get iPhone in 2010
Apple currently has a deal with the number two cell phone service provider, AT&T, but many believe that will expire in 2010. It would then seem obvious to choose the number one choice, Verizon. The problem is is that both companies have found success in "customer control". It's the similarities that are keeping the two giant companies apart."Apple runs its own App Store and VZ has aspirations to do so," said analyst Shaw Wu with Kaufman Bros. "Apple controls the media experience with iTunes and VZ with its V CAST service. Moreover, Apple gets very favorable economics with an overall iPhone (average selling price) of $611 and at AT&T, we estimate it is higher at roughly $700. RIM, who is by far VZ's largest smart phone supplier, only has an ASP of $340. Palm's ASP is $436 and we estimate Motorola's Droid ASP is roughly $450."
Wu predicts that because the two companies have similar interests, the whole deal may take a while, making the 2010 deal unlikely. Instead, Wu said that Apple could get a deal with Sprint (Number Three; 48,000,000 Customers) and T-Mobile (Number Four; 33,000,000 Customers).
"While we believe VZ is likely inevitable at some point when 4G technology rolls out in 2012 or so, we believe Sprint and/or T-Mobile are more willing partners for Apple in helping maintain margins and customer controls," Wu states. "From a technology perspective, we believe T-Mobile may have an advantage with a similar 3G UMTS/WCDMA network as AT&T."
This is the second time this week that an analyst predicted Apple to go to T-Mobile in 2010. Even though it is currently incompatible with the iPhone because of the unique 1700MHz spectrum, it would be easier to add more hardware than changing compatibility to fit Sprint or Verizon's networks.
Recent rumors have suggested that Apple is working on a new chip with Qualcomm to add CDMA connectivity to the new iPhone in 2010. However, both Verizon and Sprint use technology that is not widely used abroad, unlike AT&T and T-Mobile.
One other possibility is that Apple will extend its contract with AT&T until 2011. The current contract is expected to end in summer, 2010, but a last minute extension is still a possibility.
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ioana_i
May 06, 2010 at 12:30am
It’s very interesting, I think Verizon will make concessions to get the iPhone
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julieana
January 29, 2010 at 3:06am
The iPhone is the king of smartphones. Verizon wants it, and one day they will carry it. But it's unlikely their network will be ready and a deal will be hashed out by 2010.
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January 21, 2010 at 11:38am
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December 16, 2009 at 2:11pm
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ronhing
December 06, 2009 at 5:57am
In Canada all three of our major carriers are now carrying iPhone. Verizon will eventually make concessions to get the iPhone. They can't be that stubborn and hold out. It's like shooting yourself in the foot. iHing @ iCrazee - Experience the Personal Madness of Owning an Apple Mac
SouthPhillyPT
December 02, 2009 at 5:00pm
3G frequency bands for AT&T and T-Mobile USA differ from each other. T-Mobile uses the 1700/2100 Mhz band and does not currently support the iPhone's quad-band frequency. However, it may be likely that Apple may come up with an iPhone that is compatible to T-Mobile's frequency band.
Loup407
December 02, 2009 at 4:40pm
Verizon, T-Mobile....anybody...just let me get out of AT&T. Their network (at least here in Colorado) will single-handedly bring back payphones. Maybe that's the bigger part of their strategy.
kevkevallen
December 02, 2009 at 4:16pm
I've been waiting for iPhone to come to Verizon since the OG iPhone was announced!
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