Verizon in Talks with Apple Over Possible iPhone Deal

USA Today reports that Verizon Wireless (VZ) and Apple (AAPL) are considering developing an iPhone for Verizon’s network with the goal of introducing it as early as next year, according to people familiar with the situation.

The unidentified sources said the two companies entered “high-level” discussions a few months ago when CEO Steve Jobs was still overseeing Apple’s day-to-day business.

If these rumors materialize in a reversal of fortune for AT&T (T), then this will “mark the first time Apple has produced a version of the iPhone for a CDMA wireless network, which is different from AT&T’s GSM technology.” [From USA Today.]

The news is certainly not a good one from a business perspective for AT&T. The company's exclusive deal to carry the iPhone in the U.S. expires sometime next year, and it is rumored that CEO Randall Stephenson is working hard at extending it until 2011. Stephenson’s persistence in extending the iPhone deal with Apple is understandable. His company reported solid results in Q1′09, crediting it to iPhone sales and the resulting spike in data revenue. AT&T signed up 1.6 million iPhone customers during the quarter — 40% of them new to AT&T.

From USA Today:

Should Verizon succeed, it would be a big loss for AT&T, says Roger Entner, head of telecom research for Nielsen. “Breaking the (iPhone) exclusivity with AT&T is a huge thing,” he says. “That would send shivers into AT&T’s stock and senior leadership.”
…
By linking arms with Verizon, Entner says, Apple would gain access to its 80 million customers. While a few may already have an iPhone (some people have more than one carrier), the bulk don’t.

Comments

[vassar:]

Verizon won't get the iPhone until they dump CDMA for 4G LTE in 2010 or 2011.

Apr 27 08:47 AM

[Kris Tuttle:]

Verizon deal and CDMA seems like a ploy. However it is yet another illustration of how sought after the iPhone is these days. As it matures into more of a platform every carrier will probably need to offer it just as they typically have some number of Blackberry models today. (Same with Android I expect as well.)

Smart phones will be on a roll for some time. Enjoy it.

Apr 27 09:09 AM

[buggy98:]

If it is so worthless, why are you blogging on it? hmmm


On Apr 27 06:30 AM Nonsense wrote:

> Apple is not considering building a CDMA iPhone.
>
> They will not do a deal with Verizon. This is a negotiation tactic
> ahead of an extension with AT&T. The only way to negotiate with
> them is to kick them in the teeth repeatedly until they sign a deal.
>
>
> Jobs has the panicky blogosphere doing his bidding for him, like
> this worthless site.

Apr 27 09:30 AM

[.crazylegs..:]

good point buggy98. funny to see that type of response. it just makes no sense. Nonsense=nonsense.

Apr 27 09:48 AM

[AlD:]

I'm 50% with Nonsense - Apple is not going to build a CDMA version of the iPhone.

However, once VZ goes LTE, there's a reasonable chance that they'll be able to offer the iPhone. If Apple extends the exclusive for more than a year (whatever happened to the 5-year exclusive that was originally announced? How'd that get to be 2 years?) I'll be disappointed; I greatly preferred the VZ network to the AT&T network. Although both of them have lousy customer service...

Apr 27 10:09 AM

[steveballmer:]

LIES! LIES! LIES!

Apr 27 03:06 PM

[spa:]

Apple's Iphone is a revolutionary device in hardware and software. It remains well ahead of the competition but more importantly it has spurred competition in the smartphone market. There is no downside should Apple make a CDMA Iphone for Verizon. Consumers win because AT&T and Verizon will have to compete on pricing and networks improvements. But the only way to realize the true Apple experience is to own a Mac. PC's don't feel slighted you have no idea what your missing until you switch then you'll know why Mac users are so loyal to Apple and thier products. They Just Work, Beautifully Together.

Apr 30 08:50 PM