Commentary

Apple And Verizon In iPhone Talks: Report

USA Today is reporting that Apple and Verizon are in "high-level" talks with one another to bring a CDMA version of the iPhone to market come 2010, when Apple's exclusivity deal with AT&T expires. I don't believe it.

USA Today is reporting that Apple and Verizon are in "high-level" talks with one another to bring a CDMA version of the iPhone to market come 2010, when Apple's exclusivity deal with AT&T expires. I don't believe it.Citing "people familiar with the situation", USA Today says that the two companies have been talking for several months about bringing the iPhone to Verizon's network. I am highly skeptical of this for several reasons.

Just two weeks ago, Verizon Communications CEO Ivan Seidenberg said that he believed Apple would be open to discussions about bringing an LTE-equipped 4G version of the iPhone to Verizon's network. He also said that Apple never seriously considered building a CDMA version of the iPhone due to CDMA's more limited distribution footprint.


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The report from USA Today pretty much conflicts directly with what the head of Verizon has said publicly about the matter.

I can't believe that Apple is suddenly going to deliver a CDMA version of the iPhone when both Apple and Verizon have indicated that there was never any interest in building such a device. If the two companies are talking, it is about an LTE version of the iPhone, not a CDMA version.

Last, during Apple's recently quarterly earnings conference call, the company indicated that it is "happy" with AT&T, which has sole distributor rights to the iPhone in the U.S. It gave no indication that it is planning to alter its arrangement with AT&T, though we know that the contract between the two companies expires in 2010.

As far as I am concerned, there will never be a CDMA version of the iPhone.


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