Will Apple Increase iPhone Value with Rumored Verizon Deal?

Only a rumor at this moment, but according to sources at Apple (AAPL), the company will soon announce Verizon (VZ) to be an iPhone provider, thus ending with a punctuation mark Apple's exclusivity agreement with AT&T (T).

This rumor, if true, would make the iPhone a more compelling purchase, as Verizon (and Vodafone's Verizon Wireless) offers arguably the best 3G network, and, again arguably, the best cell network, period. Which all could, should, and would result in a goosing of sales of the iPhone.

Hmmm.

Comments

[Johnny Sher...:]

I've been watching some shows on Hulu.com recently and it seems the only ad blocks they are playing are the joint-promo Blackberry Bold + Verizon Wireless deals.

It seems odd that Verizon would be positioning itself with the anti-iPhone product so strongly if it had an iPhone deal in the works.

Feb 24 05:38 AM

[Johnny Sher...:]

Hmm...I think I mean the Blackberry Storm.

This speaks to the effectiveness of the ads, I guess. :)

Feb 24 05:46 AM

[gspet:]

I'm locked into Verizon because of the family plan, and it's the only service that works in the rural area where I live. Every time I visit an Apple Store I make sure I tell a sales person I would own an iPhone if it worked with Verizon. If Apple did work out an agreement I would trade in my four year old phone in an instant and the rest of my family would also, as soon as they were eligible. That said, I highly doubt Apple and Verizon will get together, if for no other reason than Verizon still believes their V-Cast is going to make them money (which is why I shorted them just prior to their last earnings.).

Feb 24 07:22 AM

[phelix_da_kat:]

A supplier in not locked into 1 phone (although as we see a phone can be locked into 1 supplier).

The exclusivity can be a selling point - so the supplier will push that product. But as we have seen suppliers have several partnerships with mobile companies and will push for whatever they can.

So its not a big deal that Verizon is CURRENTLY promoting the Blackberry. Later it will do the same with LG.. Samsung.. Nokia... and maybe Apple.

The mobile companies are just arm candy. So long as you buy into their plans they don't care.

Feb 24 07:37 AM

[Ted Cranmor...:]

Really, this is a matter of 'when' and not 'if'. My guess is either mid-summer with the release of new iPhones, or at Thanksgiving for a run into the holiday, or as late as next year. It's possible AT&T wants a further period of exclusivity with the new versions and is willing to pay for another shot at creating switchers.

Given the hard economic times, AT&T should also offer some very cheap, or even the option of completely opting out of the data plan as some users have good wifi exposure (compare this to Verizon which pressured RIMM to leave wifi right out of the Storm! That's nuts) They should do anything to encourage switching while they still have exclusivity. Many of those who switch, but skip the data plan, will eventually add one in once they run into situations when they wish they had it. Rogers in Canada already allows you to have no data plan and they are not exactly known for being the most customer friendly company!

Feb 24 08:08 AM

[digivision:]

please don't give verizon so much credit ...I am glad I switched from verizon to ATT which gives e the best coverage and above average customer support as far as which 3G is the best it really depends where you are using it from, I have had speed problems with both

Feb 24 09:19 AM

[sleepy:]

I am sure they are negotiating, and Apple is developing a Verizon compatible iPhone. But it may only be to add pressure on AT&T in negotiating the next annual renewal of their iPhone exclusive. (Assuming the rumored 2 year exclusive with annual renewals to five years).

Remember that an exclusive delivers higher carrier subsidy, which is probably Apple's largest source of income at present.

Feb 24 09:47 AM

[dvd:]

Similar to prior comment [Ted], the first carrier to offer a reduced data plan (pay-as-you-go or restricted plan) will win customers for themselves and their smartphone vendors. Apple should have the bargaining power to pressure AT&T or other carrier (Verizon?) into more customer-friendly plans (ie, more choices).

Feb 24 11:10 AM

[mollytjm:]

i would LOVE to have the iPhone on Verizon. Though there aren't dropped calls now as there were in the beginning, Verizon seems to have more coverage in my area and i never had problems connecting when i had a phone on Verizon. i would not give up my iPhone for anything...but it would be that much better if i could get Verizon.
i seriously doubt Apple will make a 5 year contract with ATT. But they've gone from Apple store/ATT sales only of the iPhone, to being able to buy it other places and i think making it more universally available, whatever carrier you have, is a logical next step.

Feb 24 11:54 AM

[Geddy:]

And you work for AT&T! Anyway, just look at JD Powers the last couple years & then tell us who has the best network.


On Feb 24 09:19 AM digivision wrote:

> please don't give verizon so much credit ...I am glad I switched
> from verizon to ATT which gives e the best coverage and above average
> customer support as far as which 3G is the best it really depends
> where you are using it from, I have had speed problems with both

Feb 24 01:16 PM

[msagkittykat:]

I have been with Verizon and let me say through hurricans, and earthquakes, live in the country, or city, i am the one that always has service while the other carriers didn't. I will not trade. I deal and find a phone with them that works for me..Iphone is not all that!

Feb 24 10:54 PM

[User 364541:]

I really hope so, I am a Verizon costumer very happy with the coverage, but not so much by the phone selection. If the iPhone came to Verizon I would buy a couple in a heartbeat. I will be taking my business somewhere else if Big Red does not come out with some cool phones come out this year. Storm Sucks!

Feb 26 12:01 AM

[BIGJDOGG:]

Well. This is definately the most recent rumor i have read, and i am glad. most of the verizon iphone rumors i read are from the end of last year and january of this year. i am glad this rumor is still being fed. if there have been apple employees leaking this information, i would assume it to be true. apple doesnt generally leak any info as to what may be coming, so to leak it and lie about it is highly doubtful in my mind. i am really hoping verizon gets it. i have been a loyal verizon customer for almost four years now, and with the coverage att gets in my area compared to verizon, i dont plan to switch anytime soon. not even for an iphone. if apple plans to compete with the other smartphones like blackberry and palm or whatever, they are going to need to diversify to more than one company, especially if its att. (no offense to any att customers, im just saying) i agree with Ted about the releasing of the verizon iphone. i do feel it may be around thanksgiving for the holidays, but i feel much more strongly about it being released at WWDC 09, which is June 15-19. Although it will probably be a month or so before they release it. (July or MID-SUMMER!!) Plus, since Jobs has been on a leave of absence for 6 months "until the end of june" i figure he will come back early, especially if a verizon iphone is going to be released!!!!!!!!

Apr 03 04:17 PM

[ressetaylor:]

The iPhone will likely NOT be a Verizon connected product any time soon (see following link)

reviews.cnet.com/8301-...;title

Besides the difference in Radio hardware (they would have to make a whole different phone for verizon) Verzion always insists on having their crappy software on phones. "Get it now" and that nonsense...for example. ATT provides the connection and Apple does the rest. Apple makes the money on ringtones, apps, etc... On the other hand...VERIZON would want to to control and make all of that money. Its just not gonna happen people. Not in June...and probably not anytime soon after. If you look at the iPhone...there is NOTHING ATT about it; No ATT splash screen, no ATT ringtones, no ATT Mobile TV nonsense, NOTHING. Verizon thinks V CAST is the wave of the future and would clearly want that and their other crap on a Verizon iPhone. NOT GONNA HAPPEN

Apr 04 10:46 PM

[BIGJDOGG:]

hey ressetaylor, there is just one thing that i would like to point out to you about verizon and their operating system. the blackberries and palms and q's and whatever all the different smartphones they have are either running palm os or windows mobile, so why would the iphone be any different. i understand that the ringtones are purchased on those phones through vcast, but personally, i have never in my four years of being with verizon used vcast and never will. VCAST SUCKS!!!!! all i am going to say is that i dont care what your little cnet article says, and i also dont care what your opinion is, i along with many others feel that apple is going to announce an iPhone for verizon sometime soon. I personally think its going to happen in June, i dont care what you say. There is no way for me to tell if i am right, but there is also no way for you to prove me wrong. we are just going to have to wait a couple of months and see what happens in June at WWDC!!!!!!!!!!!

Apr 06 01:06 PM

[MsNotACopy:]

Hmm i disagree, there were not half as many units of the phone as there were the iPod. There is an iPod sale regardless of carrier or anything. Same with the Macs, the iPhone may be a nice market share in the cell industry but I doubt that its their best seller. The largest capacity iPod is $200 bucks and the touch is $200+ which only students receive discounts on when they buy a MAC. I'm sure the iPod is what writes everyone's check. We wouldn't even consider the quality of that phone if we never listened to a pod. If windows came out with a phone with Zune capabilities it would get laughed at cause Zune does not have the market share that iPod has. Then think of iTunes and the people who don't have an iPod that use it. Then think of contracts of business' and schools that use MACS.


On Feb 24 09:47 AM sleepy wrote:

> I am sure they are negotiating, and Apple is developing a Verizon
> compatible iPhone. But it may only be to add pressure on AT&T
> in negotiating the next annual renewal of their iPhone exclusive.
> (Assuming the rumored 2 year exclusive with annual renewals to five
> years).
>
> Remember that an exclusive delivers higher carrier subsidy, which
> is probably Apple's largest source of income at present.

Jul 03 03:11 PM