Apple and Verizon in Pricing Spat Over CDMA iPhone?
Posted 01/05/2010 at 8:08am
| by Matthew Tilmann
While it is well known by now that Apple and Verizon are trying to hammer out a deal to launch a CDMA iPhone this summer, new reports are coming up saying that the two behemoths are having trouble pricing the phone, according to AppleInsider.
Maynard J. Um of UBS Investment Research said that a new iPhone is expected to launch in mid-2010, but whether or not that phone would be available for Verizon's CDMA network is unknown.
"We believe a CDMA-iPhone is also in the works, though believe Verizon Wireless and Apple may currently be apart on pricing," Um wrote to investors.
Um believes a CDMA phone could still happen even if Verizon and Apple can't come to terms. Potential launches of handsets could launch in China and/or Japan whose carriers operate on other CDMA networks.
Shaw Wu of Kaufman Bros. previously thought that the conflicting interests of Apple and Verizon, whose focus is on consumer control, would get in the way of a deal.
It is estimated that Apple gets an average of $700 selling price per iPhone, which then gets subsidized through AT&T exclusively. On the flip side, the Motorola Droid gets an estimated $450 per sale, which is exclusive to Verizon.
Um also stated that he feels Apple will not announce any new products at CES 2010 this week. He does feel that Apple will roll out new products however at their event on January 27, such as a refresh of the Mac Pro, a processor upgrade for the MacBook Pro, a new iPod shuffle, and of course a certain tablet product.