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.