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April 27, 2009

Verizon Is In Talks To Sell The iPhone

Iphone-on-verizon It would be at least a year off, but USA Today is reporting that Apple and Verizon have been talking about bringing the iPhone to Verizon's 80 million customers:

Verizon (VZ) and Apple (AAPL) are discussing the possible development of an iPhone for Verizon, with the goal of introducing it next year, people familiar with the situation say.

It would 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. Vodafone, co-owner of Verizon Wireless, already sells the iPhone in Europe.

The New York-based telecom entered into "high-level" discussions with Apple management a few months ago, when CEO Steve Jobs was overseeing day-to-day business, these sources say. They declined to be named because they aren't authorized to speak publicly.

Assuming Apple decides that its worth it to produce a CDMA model (which at about 375 million global subscribers doesn't come close to GSM's 2.5 billion or so subscribers), then the biggest loser will of couse be AT&T:

Regardless, Entner says, Apple would likely maintain ties with AT&T. The biggest winners, by far, would be consumers, he says.

"They could pick the network they wanted to use: AT&T's or Verizon's," he says. "It would finally give consumers choice, and choice is a good thing."

Entner says Verizon would fare well in that fight. While AT&T's 3G network is "somewhat faster," he says, Verizon's network "is generally perceived to be better in terms of reliability."

The biggest loser? "AT&T," Entner says. "It would be a reversal of fortune, because a lot of people who have been disappointed in AT&T's network but love the iPhone would probably" jump to Verizon.

Apple would also benefit, he adds, "because that means they'd have to buy a new iPhone."


Read more @ USA Today

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