Apple to Launch Verizon iPhone Next Year

According to WSJ, Apple is still working on a CDMA version of the iPhone for the Verizon network. This isn’t a new rumor. We talked about a potential January launch for a Verizon iPhone back in June. In August, it seemed that Apple had tipped their hand by ordering millions of Qualcomm CDMA chipsets, which indicated they would be developing a CDMA device. Now, official reports from “people familiar with the matter” have the Verizon iPhone back in the spotlight.

Apple Inc. is making a version of its iPhone that Verizon Wireless will sell early next year, according to people familiar with the matter, ending an exclusive deal with AT&T and sharpening the competition with Google Inc.-based phones.

While we know that this is just rumor, it seems very likely to be truth. Apple’s disappointment with AT&T is well known among customers and we’ve even heard Jobs comment on the matter. Not only has the AT&T network failed to keep up with heavy data use from iPhone customers, but AT&T was instrumental in the iPhone 4 pre-order debacle. Verizon, with the largest subscriber network in the US, could create millions of new iPhone customers. Consumer Reports and others have already concluded that Verizon has a better network than AT&T.

Verizon Wireless has been meeting with Apple, adding capacity and testing its networks to prepare for the heavy data load by iPhone users, according to one person familiar with the matter. The carrier is seeking to avoid the kind of public-relations hit that AT&T took when the boom in data-hungry iPhones overtaxed its network, especially in New York and San Francisco.

Android sales have surged this year and it seems to be the platform of choice for consumers and developers. It doesn’t really matter if Android is actually a threat to the iPhone or not, Apple has to do something to stay competitive in the smartphone market. Verizon is one of the biggest pushers of Android devices, being the home for the original Droid, Droid X, and now the Droid Pro.

While Apple won’t comment on a Verizon iPhone, Verizon President Lowell McAdam said at a press conference “At some point our business interests are going to align. I fully expect it, but I don’t have anything to say.” Not necessarily a denial, but Verizon and Apple still have some things to iron out. Getting the technology together is one thing, but the companies also have to agree about things on the software side.

At this point, Verizon is in a power position over Apple. They don’t need Apple like AT&T does, but Apple needs Verizon to grow and expand. It looks like one major stumbling block is in Apple wanting to keep things like V-Cast off of the iPhone. Depending on how badly they want it, Apple could be pressured into adding V-Cast and other bloatware to a Verizon offering, something that I’m sure many potential customers would be concerned about.

via WSJ, TechCrunch


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