Analyst: Apple and Verizon in negotiations over CDMA iPhone pricing

Run Windows on Mac OS X with no reboot!“Apple and Verizon are rumored to be in negotiations for a summer 2010 CDMA iPhone launch, [but] the nation’s largest wireless carrier and the handset maker are believed to be at odds over pricing,” Neil Hughes reports for AppleInsider.

“In a new note to investors Tuesday morning, Maynard J. Um of UBS Investment Research said that a new iPhone is expected to launch in mid-2010. Whether that phone would be available for Verizon’s CDMA network remains to be seen,” Hughes reports. “‘We believe a CDMA-iPhone is also in the works,’ Um wrote, ‘though believe Verizon Wireless and Apple may currently be apart on pricing.'”

Hughes writes, “Last fall, conflicting reports within chip maker Qualcomm suggested a Verizon-capable iPhone could arrive in mid 2010. Whether that handset would be a dual-mode world phone, or a Verizon-only CDMA model was disputed.”

Read more in the full article here.

MacDailyNews Take: Bet you wish you were still on Apple’s Board, huh, Eric? Have a nice day, iPhone wannabes. wink

31 Comments

  1. Let’s say that you’re right, although I don’t buy that it’ll only be 2 years.

    Apple could easily sell 30+ million Verizon iPhones in 2 years. Couple hundred bucks profit per, and we’re talking over half a billion dollars in profit.

    All above numbers are made up, but shouldn’t be too off the mark. Now, why exactly shouldn’t Apple sell CDMA phones for 2 years?

  2. I find it hard to believe that Apple might consider feeding a competitve ecosystem like Verizon. So long as Verizon doesn’t have the iPhone, competition will be spurred to beat it and people will adopt the technology. It’s a no brainer. Sign the contract.

  3. “I find it hard to believe that Apple might consider feeding a competitve ecosystem like Verizon. So long as Verizon doesn’t have the iPhone, competition will be spurred to beat it and people will adopt the technology. It’s a no brainer. Sign the contract.”

    Android, RIM, and while its dying, Winmo are the competition. Even if they only sold CMDA iPhones for just a couple of years, the iPhone will kill off what’s left of the competition. Face it, right now, the only reason people buy Android is because Sprint or Verizon don’t carry the iPhone, and the only 2 reasons people buy RIM is either because their company buys it for them and its already entrenched in their work environment or because they can’t get the iPhone on their carrier.

    If the iPhone went live on the different carriers, that would spell the end of RIM and Android, and Winmo is barely on life support as it is.

    Of course, that’s just my opinion……

  4. NOOOOOOOOOooooooooooooo….

    Apple needs to tell Verizon to go F$#% themselves.

    Verizon had an opportunity to be the exclusive US carrier of the iPhone and they blew it. Now, it is AT&T;that is Apple’s partner. All is well that ends well.

    Verizon is nothing more than a bunch of f$#%ing wh*$^& that simply want to jump onto the M&$^#^F^@&^@ gravy train now that it has left the station without them.

    Apple needs to tell Verizon to go to H*77, and to never call again.

  5. I don’t believe that apple will allow Verizon to control the apps you put on your. Nor do I believe Verizon will change their business model of phone app control for the sake of getting the iPhone. I also think that Steve is the kind of guy who would take the latest ad compaign personal. If verizon had only attacked AT&T;, perhaps it would not have been so bad, but they blatantly also want after Apple and the iPhone

  6. Most likely all the “source” leaks are coming from Verizon. Doesn’t matter if it is true or not, it might be, but it doesn’t matter.
    Verizon wants to keep this rumor going so their customers don’t do something drastic like switch to ATT and buy an iPhone.

  7. For better or worse, I’m on Verizon; that’s not going to change. I don’t do data or smartphones (don’t do MMS or texting either), but with a iPhone, that could change. If Verizon does get the iPhone and doesn’t have their network upgraded to 4G, and I mean everywhere, then we can all listen to the tens of millions of people flooding to Verizon iPhones whine about how bad the coverage map is. Something tells me that the worst thing that could happen to Verizon would be to get the iPhone since it will expose their true weakness. I’d love to have an iPhone, but it is not a necessity (yet) and I can live without it. Following Bob L’s thoughts, I would certainly examine what Verizon offers in their plan carefully before I jumped on board with them. I hate being nickeled and dimed for everything. Seems to me that Verizon is going to have to swallow a considerable amount of crow before they get the iPhone. I really don’t know whether to wish them luck or not. Putting the iPhone on Verizon certainly would crush all the other handset makers though.

  8. Why no t-mobile??? an iPhone under that carrier would be a bigger hit for apple. Coverage between AT&T;and t-mobile Is about the same, except there’s a huge price difference between the 2. And both carriers haven’t crushed each other in the comercials.

    Verizon is still too pricy.

  9. … so you can give up surfing and talking at the same time??? Wow, that’ll make me switch to Verizon…………… NOT!!! Besides, Verizon has crappier voice coverage in my area along the west coast than T-Mobile, with AT+T beating both… maybe not 3G, but better coverage for basic stuff – like actually talking to someone in realtime. I’ve got plenty of wifi spots for the heavy lifting when I need it in the meantime. Forget Verizon for me – don’t like having to have a lawyer translate the latest bill each month.

  10. My Guess would be Verison is just trying to hold on to customer’s that want an iPhone by seeding fake rumors that the iPhone is going to be on Verison too. Then when it doesn’t happen all the Verison will seed more fake rumors in the hopes of keeping their iPhone lusting customers a bit longer in hopes that some one some where will come out with a phone close to an iPhone that will satisfy at least some of the iPhone lusting customers.

    It’s so unlikely that Apple will do a CDMA iPhone just for Verison without Verison picking up a majority of that cost. Apple is a smart company and they know full well that Verisons CDMA Network is zipping to it’s end of life that make a few hundred thousand CDMA or even dual protocol phones isn’t worth the cost. Apple could release the GSM 3G iPhone on T-Mobile and capture 25% of Verisons customers that want an iPhone but don’t want AT&T;and another 5% to 10% by letting the smaller GMS 3G carriers sell the iPhone in areas that AT&T;does not cover. The rest would jump on AT&T;, T-Mobile or a smaller carrier if Apple announced that the iPhone would never support CDMA. It would put egg on Verisons face and show them as a desperate carrier trying to lock-in it’s customers with false rumors and lies. Is that the kind of company you’d want to do business with?

    The iPhone is never likely to be a CDMA phone their just isn’t the long term viability in the protocol. After Verison moves to 4G in major markets then a Verison iPhone 4G might be a winner but not with Verison being CDMA still in all it’s markets.

  11. @ RePlay

    I’m with you on that. Probably one of the few Mac fanboys who doesn’t have an iPhone, let alone a data plan, texting, etc on my current phone.

    I use a 24″ iMac at home and work which is only 15 minutes away so I’m hardly removed from my Mac environment.

    Funny how so many people are out of work and losing their homes but still have smart phones. In my experience, most COULD afford their mortgages but choose not to. Where else can you make a bad investment, stop paying and get to live rent-free for months or years until you’re evicted?! Then responsible homeowners have to pay for your careless ways, unpayed HOA fees, etc.

    That’s my rant as I sit across from a co-worker in that situation with a personal trainer, iPhone, wedding and honeymoon planned all while not paying her mortgage. Easy to pay off your other debt when you abuse the system!

  12. This would be the worst nightmare of Apple’s iPhone competition in the U.S. But somehow, I still can’t see Apple and Verizon coming to an agreement, where Apple gets to keep control of media and app distribution.

  13. Verizon and Sprint use the same backbone technology. Tweak the CDMA version to support WiMax and bait Sprint into meeting Apple’s pricing demands.

    You know those Verizon map commercials? Much of that red is the mutual roaming agreement they have with Sprint’s EVDO network.

    Wanna bet on the number of subscriber churn AT&T;and Verizon would see?

    Screw Verizon. Go with Sprint. They are hungrier. They’re more desperate to meet Apple’s demands.

  14. Maynard J. Um of UBS Investment Research […] ‘We believe a CDMA-iPhone is also in the works,’ Um wrote,

    Poor Maynard, stuck with, um, such a last name. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  15. @John
    “Apple could easily sell 30+ million Verizon iPhones in 2 years. Couple hundred bucks profit per, and we’re talking over half a billion dollars in profit.”

    30,000,000 x 200 = 6,000,000,000

    That’s $6B, not $500M, which only strengthens your argument. That’s IF Apple is willing to sidetrack to a CDMA phone just for some short term gain. I personally doubt it. I believe that Apple wants to stay focused on their plan and not get distracted by adding a CDMA version of the iPhone. But I could be wrong – after all, I’m not the multi-billionaire CEO of Apple ;-p

  16. If Apple can develop an iPhone without wifi for China they can make a phone just for Verizon. Not only would they sell tens of millons of them they’d generate more revenue from app and music sales. Crucially they’d drive a stake through the heart of the competition. The iPhone is available on multiple carriers in most countries except the US, this makes no sense.

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