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iPhone May Be for Verizon
Reports that Apple is developing a CDMA iPhone could mean Verizon Wireless may get the iPhone once AT&T's exclusive U.S. contract ends. The report spiked Verizon's stock price, although a CDMA iPhone could also mean Apple is targeting Asian markets. Apple also reportedly plans a faster and thinner iPhone to be introduced this summer.
The report in The Wall Street Journal is attributed to unnamed people briefed by Apple. The current iPhone carrier partner in the U.S., AT&T Wireless, uses GSM technology, while Verizon uses CDMA. Although Sprint Nextel also uses CDMA, Verizon is AT&T's largest competitor, and there has been speculation over the last few months that Verizon might acquire the iPhone after AT&T's exclusive period expires.
'Only Apple Knows'
The report led to a four-month high Tuesday for Verizon's stock price. Some analysts believe iPhone availability could mean an additional 3.5 million customers for the carrier within the first six months.
Verizon and Apple have declined to comment on the story, but a spokesperson for AT&T told news media that there has been speculation about a CDMA iPhone "for a long time," and that "only Apple knows when that might occur."
While GSM is the most popular network standard in the world, a CDMA iPhone could be picked up by carriers in Asia, who also use the technology. In fact, some analysts are suggesting that, if the report about the manufacturing plans is accurate, the CDMA iPhones could be targeted toward those Asian carriers rather than Verizon.
The Journal also reported that Apple intends to release a new iPhone model this summer as part of its regular upgrade cycle. The only details offered by the publication were that the new model will probably be thinner and have a faster processor than current versions.
The competition between AT&T and Verizon has been altered by the iPhone, which has helped AT&T obtain 43 percent of smartphone customers in the U.S., and AT&T's growth in recent quarters has been largely driven by the iPhone. Verizon has about 23 percent of the U.S. smartphone market.
'Multi-Carrier Strategy' in Other Countries
But the iPhone isn't without cost to AT&T. The heavy data usage by iPhone owners has put a strain on the company's wireless network.
All the major carriers are in the process of upgrading their networks to higher speeds, and, at one time, Apple had indicated it considered CDMA to have a short life span. But Verizon has taken longer than expected to upgrade its network. Sprint is trying to get into the lead in next-generation technology, recently releasing a smartphone that works on its growing 4G network.
Ramon Llamas, research analyst at IDC, noted that Apple has "taken a multi-carrier strategy in other countries," and might do so here as well. He pointed out that there are many Verizon customers who would like to get an iPhone, but don't want to switch to AT&T.
One question, he said, "is whether Verizon's network will be ready for the upcoming data surge" that would result from a huge influx of iPhone owners.
Wireless Business Solution Zee Tawasha