Analyst: Verizon, Apple May Not Come to Terms

rated by 0 users
This post has 4 Replies | 0 Followers

Top 10 Contributor
Posts 24,867
Points 1,116,100
Joined: Sep 2007
ForumsAdministrator
News Posted: Sat, Sep 25 2010 7:19 PM
On Thursday, at a Goldman Sachs conference, from Verizon Communications CEO Ivan Seidenberg made comments that implied the rumors of a soon-to-launch Verizon iPhone were vaporware. On Friday, a Wall Street analyst said the two companies may never come to terms.

Seidenberg said the following on Thursday, making those clamoring for a Verizon iPhone blanch, "We don't feel like we have an iPhone deficit. We would love to carry it when we get there, but we have to earn it. I think 4G will accelerate the process, and any other decisions Apple makes would be fine with us. Hopefully, at some point Apple will get with the program." That was hardly the sort of talk that makes one think a Verizon iPhone is coming in Q1.

On Friday, in a research note, Mike Abramsky with RBC Capital Markets said "Verizon may not accept Apple's contract terms that risk its Android franchise, which could face significant cannibalization from pent up iPhone demand on its network. And Apple may not want iPhone to be second banana to Android at Verizon, and may be unwilling to accept less than prime marketing, subsidy support for a Verizon iPhone. This may or not ever get resolved even under LTE; the longer this takes, the more entrenched Android becomes at Verizon so the more difficult to strike a deal."

 It's widely believed that Verizon was the first choice for Apple's iPhone, but the carrier turned down the arrangement as it could not come to terms with Apple. Since then, AT&T has taken advantage of its arrangement with Apple to close in on Verizon's subscriber numbers, while at the same time Android has become a hit based on its relationship with Verizon, as well as other carriers.

As far as reports of a possible 3 million CDMA iPhones to be manufactured in December, Abramsky believes they may be destined for other carriers, not Verizon. There are plenty of other CDMA carriers, including KDDI in Japan, China Telecom, Mexico's Telefonica, and Sprint and U.S. Cellular in the U.S. Still, when one thinks CDMA, at least in the U.S., one thinks Verizon.

Rumors of a Verizon iPhone in Q1 of 2011 continue to circulate. One clue that we noted was just how "generous" AT&T was in giving early upgrades to some customers, so they could get the iPhone 4, additionally locking them into AT&T for two more years. Abramsky believes that if a Verizon deal cannot be made, Apple may turn to Sprint and T-Mobile instead.
  • | Post Points: 35
Not Ranked
Posts 2
Points 25
Joined: Jul 2010
cellhead replied on Sat, Sep 25 2010 8:32 PM

They can keep their stupid phone, I

compared my Incredible vs. the iPhone4

in an Apple store and it kicked butt on

the iPhone!!!

  • | Post Points: 20
Top 25 Contributor
Posts 3,735
Points 40,310
Joined: Jan 2010
Location: New York
Inspector replied on Sat, Sep 25 2010 9:12 PM

Cellhead, are you saying the iPhone kicked ass or the incredible?

Well then... It could be interesting to watch as apple decides what to do with Verizon or switch the plan around and go to other providers.

  • | Post Points: 5
Top 25 Contributor
Posts 3,477
Points 53,915
Joined: Jul 2004
Location: United States, Massachusetts
ForumsAdministrator
MembershipAdministrator
Dave_HH replied on Sat, Sep 25 2010 9:43 PM

I have an iPhone 3G and I can say the Incredible definitely is better than it. Believe it or not, I have yet to set paw on the iPhone 4 though. I know... for shame.

Editor In Chief
http://hothardware.com


  • | Post Points: 20
Top 25 Contributor
Posts 3,735
Points 40,310
Joined: Jan 2010
Location: New York
Inspector replied on Sat, Sep 25 2010 10:14 PM

AHAHAHAH Shame on you Dave! lol NOT! I will most likely try an android phone when my current contract is over,  still some time to go...

  • | Post Points: 5
Page 1 of 1 (5 items) | RSS