Analyst: Apple to add Verizon as iPhone carrier by second half 2010

“If Apple ends its exclusive carrier agreement with AT&T next year, it will likely mark the end of its estimated $450 carrier subsidy for the iPhone, a new analysis has forecast,” Sam Oliver reports for AppleInsider.

“In a new note to investors, analyst Brian Marshall with Broadpoint.AmTech said that the ‘sweetheart’ carrier subsidy provided by AT&T for the iPhone would not be attainable with Verizon. He believes that the iPhone will be added to the Verizon network in the second half of 2010, but not without consequences,” Oliver reports.

“A non-exclusive iPhone, Marshall forecast, would command roughly a $300 carrier subsidy,” Oliver reports. “But he believes that any losses would be made up in volume, as Verizon is predicted to sell roughly 14 million iPhones in the 2011 calendar year. With an average selling price of around $500, that would be another $7 billion in revenue for Apple.”

More in the full article here.

53 Comments

  1. Apple can suck another 14 to 15 million users off of Verison over the next 16 to 18 months so why why spend the money and R&D;time to make a phone that will only work on Verison.

  2. @Whatever:

    I’d have to agree with you on this one. I just can’t see apple moving the iPhone to a CDMA technology. CDMA is dead. Verizon’s 4G or LTE network is only in the testing phase. Full deployment, if my memory serves me, won’t happen until 2012 at best.

  3. Simple math implies that if the subsidy went down by $150, retail price would go from $200 to $350. How many more people will NOT buy the iPhone if it were to sell for $350 instead of $200? I doubt that the number of people who would NOT buy the iPhone while it’s only on AT&T, and would be willing to spend $350 on Verizon would make up for the number of new customers lost due to that increase in price.

    There is an increase in noise regarding Verizon and iPhone. I have always found it very difficult to believe Apple would ever bother. It is still struggling to keep up with the demand; it still doesn’t need one more outlet to sell (presumably) even more devices, since they can’t even make enough as it is.

    I just don’t see it anytime soon.

  4. Apple will not be taking the iPhone to Verizon. T-Mobile maybe, but not Verizon. Insulting the iPhone with the Droid advertising almost assures that Steve Jobs will keep the iPhone away from Verizon.

  5. There is no way Apple would create a CDMA device. The rest of the world is on GSM.

    Let me say this again. The REST of the world is on a GSM network.

    I don’t even see Apple adding the frequencies needed for T-Mobile 3G network.

  6. The rest of the world is on gsm … BFD. If they want more market share, they will do it. At&t;will be changing frequencies … so that means the current ones are dead. Same type of stupid analogy. If it is cost effective to apple, then they will do it. The radio part is just not that tough.

    Silver I think they are ‘claiming’ “20 or 30 LTE markets won’t be ready until the second half of the year, and complete US coverage won’t be attained for another five years.” The extra 6 month wait for the frequencies probably didn’t hurt them, just made their schedule more realistic. Either way, cdma radio will be needed to do it right (might explain the job posting for a cdma guy on apples site earlier this year).

  7. The “analyst” in question is making stuff up. If Apple were to release an iphone for Verizon next year, they would have to include CDMA, since VZW’s 4G network isn’t close to sufficiently built out to rely upon it 100%. That means building in and certifying a whole new RF section for a limited time and limited market. Plus, CDMA doesn’t allow voice and data over the same call; so, you’d have an iPhone that doesn’t work like other iPhones do. That’s a cardinal sin. Can anyone really see Apple saying: “Sorry, this app won’t work for you because you have a Verizon iPhone”?? Not likely. It would cripple the seamless user experience.

  8. I love how some think that just because Verizon “supposedly” insulted Apple that Jobs would cut off his nose to spite his face!

    The first thing Jobs did after returning to Apple was to brace Microsoft!

    This is business gentlemen it’s all about the Benjamins.

    As a shareholder, I would like a piece of that seven BILLION in additional revenue.

    When you set out to conquer the world, you can’t ignore those who would insult you.

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