We have already talked about the iPhone potentially coming to Verizon, but it looks like these rumors are getting some teeth. Bloomberg reported the Apple phone would be launched on Verizon’s network next year. Now, we have more concrete evidence that this may be the case. According to TechCrunch, Apple has shown their hand by the part orders they’ve recently placed:
Sources with knowledge of this entire situation have assured me that Apple has submitted orders for millions of units of Qualcomm CDMA chipsets for a Verizon iPhone run due in December.
The logic is simple: Verizon doesn’t use GSM as AT&T does, they use CDMA technology on their network. This means that Apple will need to create an entirely new and separate design to accommodate this different technology. By ordering “millions” of CDMA chipsets from Qualcomm, something they have never done before, it follows that they must be creating a CDMA device. More than likely, this device will be a new version of the iPhone for Verizon.
Component purchases and manufacturing starts don’t typically reveal strong links to individual handset OEMs. But in some cases components have a DNA which is traceable through the supply chain. For example, iPad rumors became much more concrete when we knew Apple was procuring large LCD screens.
Because of the limited supply of these parts, the order has been placed just in time to get the chips by December, which could result in the devices themselves being ready some time in January. This falls in line with the earlier rumors about an iPhone for Verizon.
Adding fuel to the fire, Verizon CEO Ivan Seidenberg will be making the opening keynote speech at CES 2011. Companies sometimes make major announcements about new products at CES and rumors are already circulating that Seidenberg might speak on Apple. Exciting, but not likely given the control Apple exercises over their products and brand representation. It is doubtful that Jobs would allow anyone else to ever announce an Apple product. Besides, Apple’s own keynote comes just a short time later.
This could come as a huge blow to AT&T, but they insist that losing their iPhone exclusivity won’t have an effect on their bottom line. In their latest quarterly filing with the U.S. Securities and Exchange Commission, they said:
“We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations.”
This is odd because one-third of AT&T’s activations in the first three months of this year came from customers who were new to the carrier and I’m pretty sure the iPhone was the main attraction. They continue to downplay the risk, just as their relationship with Apple has trended down over the last year. They also claim that 80% of customers are on family or business plans, which would make it difficult for them to switch. I still believe that current and future iPhone customers are more than willing to jump through whatever hoops are necessary to improve their experience.
via TechCrunch, MacRumors