Neil Hughes reports for AppleInsider, “In a new note to investors Wednesday morning, analyst Shaw Wu with Kaufman Bros. said although many believe the iPhone will come to Verizon in 2010, it’s likely wishful thinking. The problem, he said, is both Verizon and Apple have found success by focusing on ‘customer control.’ Their similarities are what he believes will keep them apart.”
Hughes reports, “‘Apple runs its own App Store and VZ has aspirations to do so,’ Wu said. ‘Apple controls the media experience with iTunes and VZ with its V CAST service. Moreover, Apple gets very favorable economics with an overall iPhone (average selling price) of $611 and at AT&T, we estimate it is higher at roughly $700. RIM, who is by far VZ’s largest smart phone supplier, only has an ASP of $340. Palm’s ASP is $436 and we estimate Motorola’s Droid ASP is roughly $450.'”
“Because Apple and Verizon have conflicting interests, Wu said he believes that a deal between the two companies would take longer than many currently expect,” Hughes reports. “That would make a potential 2010 deal unlikely.”
Hughes reports, “Instead, Wu said that Apple could strike deals with both Sprint, which has 48 million wireless subscribers, and T-Mobile, which has 33 million customers. Both companies are more likely to be agreeable with Apple’s practices in order to offer the iPhone.”
MacDailyNews Take: “Agreeable.” As in, on their knees begging Steve Jobs while uncontrollably salivating all over the floor.
Hughes continues, “‘While we believe VZ is likely inevitable at some point when 4G technology rolls out in 2012 or so, we believe Sprint and/or T-Mobile are more willing partners for Apple in helping maintain margins and customer controls,’ he said. ‘From a technology perspective, we believe T-Mobile may have an advantage with a similar 3G UMTS/WCDMA network as AT&T.’
Hughes reports, “Another possibility noted by Wu: Apple could extend its contract with AT&T through 2011.”
Full article here.
MacDailyNews Take: Verizon is a dumb pipe that thinks it’s smart. Verizon’s wrong an they will pay dearly if they end up being the only carrier without Apple’s iPhone.
why: “Why all the verizon hatred?”
From numerous personal experiences with the company on wireless, and land line internet “customer service”..
..where by “customer service” I mean it in the George Carlin sense where they bend you over and position themselves behind you…
Sorry you had bad experiences. I guess I look at it different. What I have works, so why waste the energy hating something I used to have. I figure only a small group knows where the iphone will be this time next year. Unfortunately I’m not one of them, and neither is this guy. I guess we will just have to wait and see.
To all of those Verizon haters look at just released customer satisfaction ranking here:
http://bits.blogs.nytimes.com/2009/12/01/verizon-leads-wireless-service-rankings-while-att-lags/
Guess who wins, that’s right Verizon. Who is last – yes the poor AT&T;. So Verizon does not have to beg the mighty Steve for the iPhone, they’re doing OK. And before anyone asks I have 4 Mac’s and an iPhone and I can’t wait to drop AT&T;. I believe that Apple is screwing its fans by withholding the iPhone.
Hey Mario
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do you even use an iPhone , or any apple products?
Hey Hotinplaya,
How can I prove it to you?
I have 20″ iMac 4G, a Mac Mini, and two white MacBooks. Several friends bought Macs because of my recommendation. And I have a first gen iPhone – I refuse to get sucked into another 2 year contract with ATT.
How about you, are you a Mac user? Or just a plain Verizon hater?
I too have had no problems with Sprint, though verizon does not work in my house. I’d love it if I could get a Sprint iPhone. I’d love it if AT & T works in my house now- I’ll have to find out.
…”And I have a first gen iPhone – I refuse to get sucked into another 2 year contract with ATT.”
So what you are saying is, you are paying $70+ per month, which includes a subsidy, even though your iPhone has already paid off the original subsidy? In other words, every month, you are giving a gift to AT&T???
For the life of me, I can’t figure out why people ever let their contract expire and don’t get a new subsidised phone. They continue to pay that subsidy, even though the old phone has already been paid of. It’s not like you can’t get out of that contract early, if you really, really need it (cellswapper.com, celltradeusa.com and similar have been around for a long while). I’m hoping to get a reasonable argument why would someone give free money to their carrier after their contract expires (and I’m not counting those who are ignorant and don’t know this).
Verizon Is Evil.
T-Mo has always been the too-obvious alternative. I still don’t see why Apple would bother with the annoyance of manufacturing a hybrid GSM/CMDA phone JUST for the North American market; they’re a global player.
Hey Predrag – you’re making assumptions – think before you write – and in this case the ignorant label better describes you. I have three more months to go on my contract. And for your information I got out of Verizon’s contract penalty free to get an iPhone when Verizon increased their messaging rates.