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Another day, another Verizon iPhone rumor

Tell us if you're heard this one before: Apple is is reportedly in the process of ramping up production for a CDMA iPhone. Rumors of Apple making the move to embrace CDMA-based carriers in the U.S. like Verizon have been tossed around before, but the evidence continues to mount that Apple will indeed launch new iPhones at the beginning of 2011.

According to the latest reports from Apple Insider, Apple is prepared to produce as many as 3 million CDMA iPhones in December to support an early 2011 launch. These CDMA-equipped iPhone would join an estimated 18.2 to 18.4 million GSM-based iPhones that will be built during the same quarter.

This news comes just after a recent study showed that most iPhone customers are happy with their handsets and Apple in general, but wish they could use an a carrier other than AT&T. The study showed that nearly 50 percent of iPhone owners would switch to a CDMA iPhone using Verizon's network if it were made available.

However, AT&T CEO Randall Stephenson doesn't believe that so many of his company's customers would be willing to flock to Big Red. “If you look at the iPhone base, about 80% is either on a family-talk plan or in a business relationship with us,” said Stephenson at a recent investor conference. “Those customers tend to be very sticky. They don’t churn very frequently.”

Stephenson went on to state that roughly two-third of its customers were already AT&T customers before purchasing an iPhone.

It should also be noted that when the iPhone was first released, the number of competent, touchscreen-based smartphone competitors on Verizon were lacking – hence the increased interest from Verizon customers. However, a “lack of product” is not the case anymore with Verizon. With devices like the Droid 2, Droid X, Droid Incredible, and Fascinate, those on Verizon who were patiently waiting for the iPhone may have already given up and made the switch to Android. So those who were previously interested in the iPhone may no longer have an incentive to switch to Apple's top moneymaker.

Whether customers stay with AT&T or flock to a Verizon iPhone -- if it ever materializes -- Apple is sure to benefit either way. IPhone sales add greatly to Apple's bottom line, and having Verizon to bring in another 3 million or more customers can only be beneficial for the boys from Cupertino.



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What's the hold up!
By Mike Rock on 9/22/2010 9:53:21 PM , Rating: 2
Why haven't apple and verizon come together already? i am one of those 'patient' verizon users you is running out of patience.

Tell me why?!




RE: What's the hold up!
By Bateluer on 9/22/2010 10:54:06 PM , Rating: 2
Because Verizon wants more control than Apple was going to let them have.

With Android, they get an OS more powerful and feature rich than iOS, that they can apply to a number of device form factors and price points, and have as much control over it as they wish. Steve would liquidate all shares of Apple and dissolve the company before he'd let anyone but himself have that level of control. :p


RE: What's the hold up!
By xmaveric on 9/22/2010 11:36:11 PM , Rating: 2
Verizon had first dibs on the iPhone but turned it down because the high cost of the device wouldn't meet their typical profit margin. Apple wasn't willing to decrease the cost of the phone in order to give VZW a higher margin, so VZW passed.

People say this was VZW's biggest mistake, but I guess you would have to speculate what their profits would have been like had they had the device in their fleet for the past few years.


RE: What's the hold up!
By mcnabney on 9/23/2010 9:57:55 AM , Rating: 2
Close, but not quite. It wasn't as much the device pricing. Remember, it wasn't that long ago when carriers were selling Palm Treo devices for $400+ and that included a contract. The deal breaker for Verizon was that Apple wanted a big chunk of the data revenue.
I imagine that because Jobs is a bitter old man once a company refuses his magnanimous offer he continues to hold it against them. That kind of kids-on-a-playground stupidity let Android grow in the non-Apple capable markets and now Jobs has found his once dominant smartphone to be not so dominant. That is why he is coming back to Verizon (or going to Sprint). He needs to sell on all carriers to maintain marketshare.


RE: What's the hold up!
By Jeffk464 on 9/22/2010 11:47:51 PM , Rating: 1
uh oh, this might give apple a fighting chance against the android phones.


RE: What's the hold up!
By tallcool1 on 9/23/2010 11:08:59 AM , Rating: 2
quote:
Why haven't apple and verizon come together already?
Likely because of an exclusive contract...
Read here: http://www.engadget.com/2010/05/10/confirmed-apple...


RE: What's the hold up!
By fteoath64 on 9/24/2010 7:01:27 AM , Rating: 2
I do not think Verizon is desperate enough!. They have lots of choices in the market and are doing just fine without a "control freak" partner which they figured will be a long-term problem/risk. Considering the market share of iDevices are not really the majority as yet, there are ways for them to expand the way they are doing. ie not having a controlling partner around.

So if no compromise is forthcoming, they will not be any deal any time soon.


AT&T service is fine for some and bad for some
By vision33r on 9/22/2010 8:24:10 PM , Rating: 3
That's the bottomline, some folks will complain to no end about AT&T service but most folks on their service are fine.

Verizon is the same, some people swear by them and some folks hate them to death.

I have both service at my house, Verizon seems to be worse than AT&T but by no means unusable.

Having the iPhone on Verizon is not going to make me switch, GSM technology is so much better than CDMA.




RE: AT&T service is fine for some and bad for some
By barich on 9/22/2010 8:46:15 PM , Rating: 1
Verizon has objectively better coverage than AT&T for both 3G and voice. Obviously, AT&T may provide better signal than Verizon in certain locations, and would be therefore better suited to people who spend a lot of time in said locations. However, if you do a lot of traveling, especially through rural areas, there's no contest. There are entire counties near where I live in Ohio with no AT&T service at all. Verizon's coverage in said counties is not perfect, but it's certainly better than nothing.

Plus, pretty much anywhere Verizon has voice coverage they also have 3G. AT&T, not so much, especially outside of major cities.

I find their statement that they cover 97% of all Americans to be extremely disingenuous. People do not spend 24 hours a day sitting at home or at the office. They travel between those places, and to others, too. Does AT&T fully cover 97% of Americans' commutes? I don't think so.


RE: AT&T service is fine for some and bad for some
By priusone on 9/23/2010 12:25:22 AM , Rating: 1
Gotta love the "97% of American's" aspect. I recently switched to Verizon, and the areas they cover absolutely blows my mind. Living in Oregon and frequenting different remote BLM regions, I can find dead spots, but my friend who has another major carrier has finally accepted defeat and just leaves his phone in the car. What really gets me is that I'm using an Android phone, and still getting a decent signal be it in the middle of a lake, or the middle of a forest.


By retepallen on 9/23/2010 8:05:54 AM , Rating: 2
You must be holding it correctly then.


By FITCamaro on 9/23/2010 9:44:37 AM , Rating: 1
What does the OS of a phone have to do with the coverage you receive?


By VahnTitrio on 9/23/2010 10:53:25 AM , Rating: 2
The OS doesn't but the antenna design of the phone would.

In my area (Minnesota-Western Wisconsin), I hear more people complaining about losing service with AT&T phones than other areas.

It doesn't matter for me though, there's no reason for me to switch away from Sprint. It works for me, and it's cheaper. And while that would have been enough for me by itself, I get a further 17% discount, and Sprint is the only carrier that will get a signal in my basement labs at work. So the choice is pretty clear for me.


By Maiyr on 9/24/2010 8:33:35 PM , Rating: 2
You pretty much nailed it. My wife and I had been with ATT for about 10 or so years. We switched to Verizon one time about 6 years ago. We were with Verizon for about a week before we went back to ATT and reactivated our old account. The reception and voice quality in Tampa is abysmal (at least at our house and most everywhere else we frequent). The signal was so bad at our house that we couldn't even activate the phones from there when we received them. Fast forward to now.... We just switched to Verizon for financial reasons (I can expense the bill). We figured how bad can it be it's been a few years, surely things have gotten better. Nope ! The voice quality and the signal is still just as abysmal. I would go back to ATT in a heartbeat if it weren't for the fact that I can expense my bill if I am on VZ. The day that ends I'll be back with ATT.

Maiyr


God you american's make me laugh!
By Wesleyrpg on 9/23/10, Rating: 0
RE: God you american's make me laugh!
By theapparition on 9/23/2010 9:47:39 AM , Rating: 2
Despite being a condecending jerkwad, you are somewhat correct, just for all the wrong reasons.

Even the dumbest monkey can guess right once in a while.

The Verizon iPhone will be LTE with CDMA fallback. Quite a coincidince that Verizon is also rolling out LTE to 1/3rd of the population before January.


By mcnabney on 9/23/2010 10:08:26 AM , Rating: 2
I really doubt that Verizon will be doing voice of LTE in January. It is possible, but I really doubt it. Now the pending CDMA iPhone could have LTE (as well as EVDO) since Verizon has said they will be launching LTE smartphones in Q1 of 2011. The LTE aircards/USB devices launch in November I believe.


By CrimsonFrost on 9/23/2010 2:26:02 PM , Rating: 2
Yeah, doesn't really make very much sense to me to push out a CDMA iPhone when Verizon, unarguably the largest CDMA provider is about to turn on their LTE network... Which solves the issue of making calls and using data at the same time, and is wayyyy faster than the very best EV-DO data speeds. Putting the phone on a crippled technology at the same time that you have the "new hotness" coming out doesn't make any sense to me.


By mcnabney on 9/23/2010 10:03:50 AM , Rating: 2
I can think of 160 million good reasons (number of customers on Verizon, Sprint, and US Cellular).

Also, remember that the #1 gripe that Apple hears is related to the network provider. Getting off of the AT&T bandwagon would be the obvious solution to solve that gripe and to gain access to a much broader market of customers.

I would also mention that making a CDMA iPhone could be done in an afternoon. Just swap out the radio component and make an antenna adjustment (that might even be needed). I am sure CDMA versions have been sent on numerous occasions to CDMA carriers during negotiations.


By Wesleyrpg on 9/23/2010 1:47:08 PM , Rating: 2
sorry, i must of woken up on the wrong side of the bed this morning!

didn't mean to make it out on you guys!


50/50 here
By tjr508 on 9/23/2010 1:02:02 AM , Rating: 2
I am generally happy with ATT service that I have used since the Cingular days, but in the area I'm living in now, there is roughly 25% coverage while Verison covers at least 90% of the area. Back in May, ATT absorbed the Alltel assets here and promised that GSM coverage would be the best in the area within 10 months. The time is 50% elapsed now and coverage has increased by exactly zero. I do, however; get to look at the letters ATT on my status bar rather than "off network." They have five more months to win me over before I'm done for good.




RE: 50/50 here
By AbuGarcia on 9/23/2010 8:21:21 AM , Rating: 2
That would be cingular, not alltel.


RE: 50/50 here
By ChuckDriver on 9/23/2010 11:30:26 AM , Rating: 2
It's Alltel:
quote:
It took a good, long while, but AT&T has finally closed on its acquisition of the markets Verizon was required to divest in order to get the government to agree to its purchase of Alltel early last year.

-- http://mobile.engadget.com/2010/06/23/atandt-seals...

Below is a link to a map with a list of counties and Cellular Market Areas (CMAs) previously served by Alltel that now receive service from AT&T.
http://www.cellularmaps.com/alltel_divest.shtml

It is confusing, but former Alltel markets purchased by AT&T are shown in red text instead of blue or orange.


Whatchyou mean "sticky"?
By Breathless on 9/23/2010 10:17:52 AM , Rating: 2
I don't appreciate him callin me "sticky".




RE: Whatchyou mean "sticky"?
By Jeffk464 on 9/23/2010 10:28:30 AM , Rating: 2
You all here that AT&T looks to be getting the first winmo7 phones. I wonder if they got an exclusive.


RE: Whatchyou mean "sticky"?
By mcnabney on 9/23/2010 12:42:57 PM , Rating: 2
They don't have an exclusive.

However, they are launching a ton of the devices. Sprint and Verizon will have 2 or 3 each. I think AT&T is going to launch 4-6 before the end of the year.

I personally think it is overkill and will cannibalize the sales of each other. Verizon went all-out with Android, but they are just now selling five Android SKUs at the same time. They started with just two. Then added a third after a few months. Now, after almost a year, they have five - Ally and Droid 2 with keyboards, Incredible, Droid X, and Fascinate without. They are all very different and meet the needs and desires of a variety of customers - a key advantage of the Android platform - choice.

AT&T will really need to be careful with the WinPhone7 launch. Having to stock so many SKUs at so many locations is expensive. I don't really think they are going to sell well, especially on AT&T. Their network is crushed under the weight of iDevices. The Apple faithful have no choice, but the five people that actually want a Zune phone can take their business anywhere. The flagship WinPhone7 device was recently leaked to this site and it was revealed to be a Droid X with Zune Marketplace access. Hardly anything to get excited about.


By sapiens74 on 9/22/2010 7:06:19 PM , Rating: 3
In additional to all the flood of ATT customers leaving, how many existing Android owners will switch phones in mid contract?

Should be interesting if this is indeed true.




By Jeffk464 on 9/23/2010 10:35:52 AM , Rating: 2
I'm still perfectly happy with my HTC incredible android phone. I see no reason to switch to a mac phone, especially mid contract. I don't like that you have to get permission from Steve Jobs for every app you want to put on your phone, call me crazy. The only thing that would tempt me to dump my phone mid contract is when the LTE phones come out, at that point I will probably decide between winmo7 and android. But to be honest I am still leaning towards android despite positive press for winmo7. Once you learn and get comfortable with an OS it seems to take some inertia to get you to switch, half the continued success of windows IMHO.


Much Needed
By popguy on 9/22/2010 6:34:58 PM , Rating: 2
I think Verizon is long overdue to have the I phone in its line.




RE: Much Needed
By Omega215D on 9/22/2010 7:28:45 PM , Rating: 2
The thing is that Apple should make this phone include both GSM and CDMA as most of the world use GSM (there are plenty of countries that use CDMA as well but GSM is still majority) if they want to tout this as a business phone that can have play time as well.


I switched to AT&T...
By CharonPDX on 9/22/2010 7:14:42 PM , Rating: 2
I switched to AT&T about 50% because of the iPhone, and about 50% because, at the time, at my house, AT&T had better service.

AT&T service has gone downhill since.

Verizon is the one cell carrier (available in my area) I have never been with. I would have no qualms about switching to Verizon next January, when the last line on my family plan has its 2-year commitment expire.




RE: I switched to AT&T...
By Ammohunt on 9/23/2010 2:08:13 PM , Rating: 2
Oct 9th i will be free from AT&T going to switch to T-Mobile and the samsung android phone.


By androticus on 9/23/2010 10:21:03 PM , Rating: 2
quote:
the number of competent, touchscreen-based smartphone competitors on Verizon were lacking


there were few touchscreen-based smartphone competitors on Verizon




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