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News

Apple, Verizon Talking iPhone Deal

Monday, April 27th, 2009 at 9:21 AM - by Jeff Gamet

Apple and Verizon may be in discussions to swing a deal to bring the iPhone to the AT&T competitor. Unnamed sources close to the negotiations have claimed that not only are the companies in talks, but that Apple is apparently willing to make a CMDA version of its combination iPod and smartphone just for Verizon's network, according to USA Today.

The iPhone has been available exclusively on AT&T's network in the U.S. since its launch and isn't available with the CMDA technology Verizon currently uses on its network. AT&T is also negotiating with Apple in hopes of extending its exclusive deal beyond 2010.

With Verizon apparently throwing its hat into the iPhone ring, negotiations for iPhone deals could prove to be heated -- and Apple will likely be in the driver's seat.

8 comments from the community.

You can post your own below.

Dude said:

April 27th, 2009 at 9:20 AM

Apple won’t make a CDMA version - will never happen.
That’s going backwards for them….

   Quote

Tiger said:

April 27th, 2009 at 11:09 AM

In talks.
Again.
Failed 2 years ago.
But now Apple has a successful product to leverage.

   Quote

vasic said:

April 27th, 2009 at 11:39 AM

The purpose of these talks is to squeeze even sweeter deal from AT&T. I doubt there is any sincere intention to actually do a multi-carrier deal in the US. What possible benefit would it have for Apple. The main advantage of an exclusive deal is that AT&T has VERY strong motivation to give concessions to Apple. If their iPhone customers could easily switch to Verizon, what possible motivation would there be for concessions? Only the privilege of being able to sell the most coveted phone? That certainly isn’t as much as being the ONLY one to sell it. And the number of additional customers Verizon could bring, and that AT&T simply couldn’t (due to poorer coverage) is minuscule and would make no difference on Apple’s bottom line in the end.

This ain’t happening. Not this year. However, what I’m expecting is a few more concessions from AT&T (perhaps A/V iChat and free tethering?)

   Quote

Pashtun Wally said:

April 27th, 2009 at 12:32 PM

A total fail, this….

Verizon demands absolute control over the phones (and capabilities) it allows on its network.
Apple insists on absolute control over the user-experinece of its products.

I think this is a dead deal unless VZW changes its spots…which I see as virtually impossible.

   Quote

Tiger said:

April 27th, 2009 at 12:54 PM

Here’s a thought to think about….

AT&T keeps it’s deal with Apple on the phones on their network.

Verizon gets a new CDMA phone OR the iPod Touch on their network. Minimal if any crossover allowed. Different feature sets. Different geographic areas.

Each company has its strengths and weaknesses, mostly due to geographic regions and their towers. It will eventually makes sense for Apple to open up to other carriers as they add more iPhone models. If rumors are true, and there are two new models coming, this opens up new avenues for them. Leave it to Apple. It/they blaze their own trails. (correct pronoun usage is marginal in posts, right?)

   Quote

daPrinz said:

April 27th, 2009 at 3:50 PM

Apple building CDMA iPhone just for Verizon? Not going to happen.
On the other hand, if negotiations with China’s GSM provider fail that would be a different scenario.
In that case Apple could build a device for China (lot of people there to say the least) and Verizon could take advantage of the deal!

   Quote

PSMacintosh said:

April 28th, 2009 at 5:40 PM

It’s about time (if they go with Verizon)!!!

Apple should build a phone for the whole WORLD, not just a 1/3 subset of the world.

It shouldn’t be hard to build.  Just switch in a chip, I think.
Many other cell manufacturers have phones that can go different formats.

The icing on the cake (that ATT hasn’t done) would be if Verizon/Apple would actually have a lot of “level” of service and therefore cost:
a low cost, cell service only type of plan
all the way to a
higher cost, unlimited broadband IN connection via 3G or 4G network.

I’d love the cell service only plan.
I’d rather see the iPhone has the ability to connect to WiFi or bluetooth with my home network or home Mac.

   Quote

vasic said:

April 28th, 2009 at 6:00 PM

...“Apple should build a phone for the whole WORLD, not just a 1/3 subset of the world.”

More like 19/20 subset of the world; CDMA represents well below 10% of global population. In the US, it is a minority player, with GSM (between AT&T and T-Mobile) dominating the coverage, as well as the total customers. So, for all intents and purposes, Apple IS building a phone for the world.

Regardless, there is absolutely nothing that Verizon can bring to Apple that AT&T can’t. The total coverage of AT&T is practically identical to that of Verizon. The number of possible Verizon customers who currently can’t (or won’t) go with AT&T is negligible.

This simply isn’t going to happen.

   Quote

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