Verizon deal could open doors for other carriers to carry iPhone

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Date: Tuesday, January 11th, 2011, 12:07
Category: iPhone, News

If there’s a domino effect with the iPhone coming to Verizon, this could get interesting.

Per AppleInsider, Apple Chief Operating Officer Tim Cook revealed on Tuesday that his company’s agreement with Verizon for the CDMA iPhone is non-exclusive, meaning the new handset could also appear on Sprint’s CDMA network.

When asked if the new CDMA iPhone is exclusive to Verizon, Cook called the deal “multi-year” and “non-exclusive.” That means the other major CDMA carrier in the U.S., Sprint, could also offer Apple’s smartphone, if it were to reach a deal with Apple.

Of course, the non-exclusive deal also leaves open the possibility of a future GSM iPhone offering compatibility with the fourth-largest carrier in the U.S., T-Mobile.

T-Mobile’s U.S. network relies on different frequencies in the AWS 3G spectrum, supporting the 1700MHz and 2100MHz bands, while AT&T supports 850MHz and 1900MHz. The current iPhone hardware does not support the 1700MHz frequency, meaning a modification of the hardware would be necessary.

Another possibility could be regional wireless provider MetroPCS, the fifth-largest carrier in the U.S. Like Verizon and Sprint, it too operates a CDMA network.

Prior to Tuesday’s news, some had speculated that Verizon could pay Apple extra in their deal to keep the iPhone away from other carriers like T-Mobile and Sprint, leaving Apple’s smartphone only available from AT&T and Verizon.

Outside of the U.S., the new CDMA iPhone will likely also allow Apple to make the iPhone available on other carriers like China Telecom. Last October, it was rumored that Apple and China Telecom were already in talks to offer a CDMA variant of the iPhone.

Stay tuned for additional details as they become available.

Verizon announces iPhone, will begin selling units on February 10th

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Date: Tuesday, January 11th, 2011, 12:45
Category: iPhone, News

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You’ve been hankering for it for over a year.

And now it’s less than a month away.

Per Reuters, wireless carrier Verizon will begin selling a version of the phone on February 10 at the same prices as AT&T Inc.

“I’m going to switch right away. I’m going to go back to Verizon,” said Raheem Noble, 24, a New York City rapper, who was on his way to buy the device before being told that pre-orders would not begin until February 3.

The new phone puts an end to AT&T’s three-year-old status as the exclusive U.S. provider for the iPhone — but leaves questions over how much Verizon Wireless would be able to capitalize on the deal with Apple.

For one, Verizon did not say on Tuesday what it would charge for its iPhone data and service plans when the phone goes on sale. There were expectations that it would trump AT&T by offering the device with unlimited data service plans.

Verizon likely will announce those prices before pre-orders begin on February 3, said Verizon Wireless Chief Executive Daniel Mead. He said he was prepared for “unprecedented” demand.

The phone will not work all around the world because it runs on the CDMA network, which is not supported in many big markets such as the United Kingdom and France.

In addition, Verizon’s first iPhone customers may buy a phone that is outdated only months later if Apple upgrades the iPhone on its typical early summer launch schedule.

“Some buyers may want to wait for a new iPhone that is likely coming in June. I already had people coming to me asking, ‘should I wait?’” said BGC partners analyst Colin Gillis. “On the other hand, a surprising number of people just don’t want to wait.”

Some analysts, pointing to years of pent-up demand among Verizon Wireless customers, expect it to sell 9 million to 13 million iPhone 4 units this year.

Verizon, a venture of Verizon Communications and Vodafone Group Plc, said the phone would be available at 2,000 of its stores. Prices with a two-year agreement for US$199.99 for the 16-gigabyte model or US$299.99 for the 32-gigabyte model — comparable to what AT&T charges.

Still, there are some provisos to consider: A CDMA iPhone will not allow users to simultaneously support voice and data connections, the same limitation that faced users of the original iPhone connecting to AT&T’s EDGE network.

Kim Caughey Forrest, senior analyst with Fort Pitt Capital Group, which holds shares in Verizon, said she believes there are many people who have been reluctant to buy an iPhone because of worries about the quality of AT&T’s network.

As an example she cited her home town of Pittsburgh: “A lot of people in Pittsburgh are really excited about the prospect of having a Verizon iPhone. I don’t believe they are alone. I don’t think we are a unique market,” she said.

On the other hand, AT&T is expected to face its toughest year since 2004 as a result of the Verizon deal with Apple.

AT&T, which has come under fire for patchy wireless service in some cities, nonetheless added an estimated 15 million new iPhone customers in 2010. It has tried to reduce its dependence on the iPhone by adding other devices to its service.

“For iPhone users who want the fastest speeds, the ability to talk and use apps at the same time, and unsurpassed global coverage, the only choice is AT&T,” an AT&T spokesman said following the Verizon announcement.

One problem for Verizon Wireless may be the high cost of selling Apple products, which come at a premium to other smartphones, analysts said.

Like AT&T, Verizon Wireless will have to shoulder part of the cost of the devices to convince people to sign long-term contracts.

Verizon Wireless will have to pay a US$400 subsidy for each iPhone it sells if it keeps the price in line with AT&T’s, UBS analyst John Hodulik estimated.

Apple follows suit, drops iPhone 3GS handset price to $49 with AT&T contract

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Date: Monday, January 10th, 2011, 06:39
Category: iPhone, News, retail

Without a ton of fanfare, Apple has dropped the price of its entry-level 8GB iPhone 3GS handset to US$49 with a new two-year contract with AT&T, matching the new low price that last week was offered exclusively by the carrier.

The 8GB iPhone 3GS now retails for US$49, down from its original price of US$99. The price change came quietly, without an announcement from Apple, just a few days after AT&T revealed it had reduced the price of the iPhone 3GS as well.

Per AppleInsider, last week, AT&T made it clear that the price of the iPhone 3GS sold in Apple’s own channels, such as its retail and online stores, were determined by Apple itself, suggesting the US$50 price cut was solely AT&T’s doing. At the time, Apple’s official iPhone site still offered the 8GB iPhone 3GS for US$99.

The current-generation iPhone 4 models still carry the same price with a two-year AT&T contract. The 16GB model sells for US$199, while the high-end 32GB model has a price of US$299.

AT&T’s chief rival, Verizon, is widely expected to announce on Tuesday that it will carry a CDMA version of the iPhone in just a matter of weeks. While reports have said Verizon will offer the iPhone 4, no mention has been made of the iPhone 3GS, first released in 2009. If Verizon’s deal is only for the iPhone 4, the US$49 iPhone 3GS could remain an AT&T exclusive.

Starting with the launch of the iPhone 3GS in 2009, Apple began selling the previous year’s model with a two-year AT&T contract in the U.S. for US$99. While the initial US$99 handset from Apple was the iPhone 3G, last year that was upgraded to the 8GB iPhone 3GS when the iPhone 4 launched.

Rumor: Verizon iPhone to be announced Tuesday

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Date: Monday, January 10th, 2011, 06:29
Category: iPhone, News, Rumor

With multiple signs pointing towards the imminent release of Verizon’s iPhone, the Wall Street Journal has stated that a new deal will “upend the balance of power in the industry, ending Verizon rival AT&T Inc.’s exclusive hold on the device and leaving smaller players like Sprint Nextel Corp. and T-Mobile USA facing two well-capitalized competitors offering the world’s most popular smartphone.”

Citing “people familiar with the matter,” the report said that while “it wasn’t immediately clear when Verison would have the devices in its stores,” the carrier would be announcing details in its press conference scheduled for next Tuesday in New York.

It also said the device “would be similar to the existing iPhone 4, but run on the carrier’s CDMA technology.” Verizon made a big splash at CES surrounding its “4G” LTE deployment plans, but that new network won’t be available for voice calls until 2012.

The report noted that Apple’s exclusive deal with AT&T, which started in 2007, “has fueled much of the carrier’s subscriber growth and has given it a solid lead in smartphone customers.”

Additionally, it noted that “the arrangement between Apple and AT&T was groundbreaking at a time when carriers tightly controlled the appearance and function of their phones, and put Silicon Valley companies like Apple and Google in the wireless industry’s driver’s seat.”

At the same time, while “Apple feels it has had tremendous success through its exclusive relationship with AT&T,” the report stated, “it recognized that it needs to partner with Verizon to grow sales faster in the US.” A note filed by analyst Shaw Wu of Kaufman Bros in December said the carrier was “still excited” about launching Apple’s iPhone early next year “to combat slowing Android momentum in the US.”

Verizon has partnered with HTC and Motorola over the last year to promote Android phones in a hedge bet against BlackBerry’s inability to deliver a worth competitor to the iPhone. However, the carrier has since seen a drop in Android interest with the arrival of iPhone 4.

Despite its “Droid” branded push in 2010, “Top Verizon executives have continued to meet regularly with their counterparts at Apple, however” the report noted, “and have long expressed interest in carrying the iPhone, which could help add to the carrier’s base of 93 million subscribers.”

AT&T has braced itself for the loss in iPhone exclusivity that it has seen coming for some time, working to lock existing iPhone 4 buyers into two year contracts and relying upon family and business plans that make it hard for individuals to leave the carrier.

Other US carriers may be hit harder, including T-Mobile and Sprint, neither of which are expected to gain access to iPhone sales, even though the new CDMA iPhone should work on Sprint’s network, and the existing iPhone 4 can work on T-Mobile’s, albeit limited to the much slower, 2G GSM/EDGE service.

The report noted that Verizon’s iPhone launch event “threatens to overshadow Verizon’s keynote address Thursday at the Consumer Electronics show in Las Vegas, where the carrier touted its new 4G network and announced a number of Google-powered phones and tablet PCs designed to make use of the network’s capabilities.”

Verizon has invited Mac journalists to the event but has notably excluded Gizmodo staff from its invitation list, a move that all but confirmed that the event involved Apple.

Stay tuned for additional details as they become available.

AT&T now selling iPhone 3GS for $49 to qualified customers

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Date: Friday, January 7th, 2011, 03:18
Category: iPhone, News, retail

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Sometimes you have to do interesting things to stay in the game.

Per the cool cats at the Mac Observer, wireless carrier AT&T announced on Thursday that on Friday, January 7, it will start selling the 8GB iPhone 3GS for US$49 to new and upgrade-eligible customers. Last month, retailers including Best Buy and Radio Shack offered temporary $49 iPhone 3GS deals, but now that price point is official, at least from AT&T: at the time this article was posted, Apple’s online store continues to offer the iPhone 3GS for US$99.

Apple released the iPhone 3GS during the summer of 2009, but it continued to be sold for US$99 after the iPhone 4 was announced last summer. Radio Shack’s holiday deal last month also knocked US$50 off the price of the iPhone 4, but prices for the current-gen smartphone seem poised to remain where they previously were for the time being.

Rumors have persistedthat the iPhone is headed to Verizon soon, which may have prompted the price change by AT&T.

Stay tuned for additional details as they become available.

AT&T secures rights to US$1.9 billion of 4G wireless spectrum licensing, gearing up new network for 2011

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Date: Monday, December 20th, 2010, 08:47
Category: iPhone, News

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Wireless carrier and U.S. exclusive iPhone provider AT&T announced on Monday that it has agreed to purchase US$1.925 billion worth of wireless spectrum from Qualcomm for its forthcoming 4G network.

Per AppleInsider, AT&T has agreed to purchase spectrum licenses from Qualcomm in the lower 700 MHz frequency band. The US$1.925 acquisition is said to bolster AT&T’s ability to provide an advanced 4G mobile broadband service “in the years ahead,” the company said in a press release.

The spectrum being sold to AT&T is currently licensed to FLO TV, but that agreement with Qualcomm is expected to be shut down in March 2011.

The available spectrum acquired by AT&T covers more than 300 million people total nationwide. 12 MHz of lower 700 MHz D and E block spectrum is accessible by more than 70 million people in five of the top 15 metropolitan areas, including New York, Boston, Philadelphia, Los Angeles and San Francisco. The remaining 6 Mhz of lower 700 MHz D block spectrum covers more than 230 million people.

AT&T stated that it intends to deploy the spectrum as “supplemental downlink” once compatible handsets and network equipment are developed. AT&T and Qualcomm anticipate they will close on the sale in the second half of 2011.

While AT&T is still building its own 4G network, expected to launch in mid-2011, the company was recently beaten to the punch by rival Verizon, the company’s 4G long-term evolution network debuted earlier this month, offering 10 times faster download speeds in 38 metropolitan areas and more than 60 commercial airports across the U.S.

AT&T will partner with Alcatel and Lucent to build out its LTE network, which will deliver higher broadband throughput and lower latency than the company’s existing 3G network. But even before AT&T’s 4G launches, the company has touted that its existing 3G network is 20 to 60% faster than its competitors.

Stay tuned for additional details as they become available and please let us know what you make of this in the comments.

Analyst: Verizon may accept more of Apple’s terms for access to iPhone

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Date: Tuesday, December 7th, 2010, 08:35
Category: iPhone, News

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Verizon may be willing to accept Apple’s terms regarding the iPhone according to Kaufman Bros. analyst Shaw Wu. Per The Mac Observer, a deal between the two companies is “closer to reality,” and Verizon may be more willing to pay what Apple wants under Apple’s terms as Android “starts losing some of its luster (at least at Verizon).”

The change would mark a shift in the rumored negotiations between the two companies, as Verizon previously hadn’t wanted to pay the same high subsidies AT&T pays for each iPhone signed up on its network. The telecom has also been unhappy with the notion of leaving Apple in charge of the customer experience, as it is with almost all of its carrier partners.

“Times have changed,” wrote Mr. Wu in a research note to his firm’s clients clients. “Apple is back in the driver’s seat with a record 14.1 million iPhone shipments in the September quarter helping AT&T gain share against VZ over the last two quarters as Android starts to lose some of its luster (at least at VZ). In addition, our sources indicate that VZ does not believe the pending launch of BlackBerry 6 on its network is likely to have a material impact.”

Another factor playing into the negotiations, according to industry and supply chain checks conducted by Kaufman Bros., is that Verizon may be willing to pay more than (i.e. what AT&T pays) to keep the device exclusive to AT&T and Verizon in the U.S., and off of Sprint and T-Mobile.

The iPhone has been the single biggest drive in customer growth for AT&T, helping Ma Bell to close much of the distance between itself and Big Red. AT&T has enjoyed an exclusive five year deal on the iPhone, but that five year contract will be up as soon sometime-in-2011, according to a variety of reported leaks and informed speculation (the smart money is on the summer of 2011).

While Verizon wants to end AT&T’s exclusivity on the device, the company doesn’t necessarily want every other carrier to get it, too, according to the reasoning laid out by Mr. Wu.

Stay tuned for additional details as they become available and if you have any thoughts on this, please let us know in the comments.

Rumor: Foxconn to ship second-gen iPad in 100 days to meet April launch

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Date: Tuesday, December 7th, 2010, 07:41
Category: iPad, Rumor

Apple manufacturing partner Foxconn will begin shipping Apple’s next-generation iPad within the next 100 days according to a story published by DigiTimes.

After checks with Taiwan-based component makers, the publication reported Tuesday that Foxconn is set to ship the iPad 2 by the end of February 2011, with initial shipments of 400,000-600,000 units. Tuesday’s report echoes an earlier report from the publication that claimed suppliers would ramp up shipments of iPad 2 components in the first quarter of 2011.

Apple had reportedly planned to begin mass production of the device in January, but ongoing testing of the new iPad’s firmware has apparently forced Apple to postpone its schedule. The new iPad is still expected to launch in April, a year after the first-generation device debuted.

According to the report, Foxconn’s new production plants in Chengdu are still in “pilot production,” so the iPad 2 will be mainly supplied by the company’s Shenzhen plants.

In preparation for a spring launch of the second generation of Apple’s successful tablet device, production of the original iPad is expected to drop off in early February. According to the article’s sources, Apple will still place orders for an estimated 1.6-1.8 million iPads through the end of January before reducing orders.

Anonymous sources have also indicated that Apple would introduce FaceTime-equipped next-gen iPads by the end of the first quarter of 2011, ahead of the usual 12-month product cycle. In November, rumors emerged that the next iPad will be a “world mode” device with both GSM and CDMA radios, allowing it to work on a variety of networks.

In the U.S., Verizon has already begun selling the iPad, though it currently only offers the Wi-Fi-only model bundled with a MiFi 2200 Intelligent Mobile Hotspot. The iPad 3G model is not compatible with Verizon’s CDMA network.

Rumor: Apple to release Mac OS X 10.6.5, iTunes 10.1 on Wednesday, launch iOS 4.2 on Friday

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Date: Wednesday, November 10th, 2010, 03:20
Category: Rumor, Software

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It’s the rumors that keep life interesting, especially when you’re hankering for significant new software updates.

Per MacStories, Apple is slated to launch Mac OS X 10.6.5 and iTunes 10.1 on Wednesday, November 10th, and iOS 4.2 for iPhone and iPad on Friday, November 12th, according to a new rumor.

Citing an inside source at AT&T, MacStories reported Tuesday that iOS 4.2 will be released on Friday at 10 a.m. The update, which will mark the debut of iOS 4 on the iPad, will require iTunes 10.1 to be installed.

iOS 4.2 will bring AirPrint and AirPlay to the iPhone, iPod touch and iPad, allowing users to wirelessly print and stream music and video to connected devices. Mac users need Mac OS X 10.6.5 to share a printer with an iOS device, while Windows users will access a printer through iTunes 10.1.

iOS 4.2 was released to developers as a golden master on Nov. 1. That status implies that the software is finalized and will be identical to the eventual public release.

The software update will bring folders and multitasking to the iPad, along with other features iPhone and iPod touch users have enjoyed since the launch of iOS 4 this past summer. iPhone owners will also gain the ability to have custom text message tones with the latest version of iOS.

A new beta of Mac OS X 10.6.5, Apple’s forthcoming software and maintenance update for Snow Leopard, was issued to developers on Monday. That software is believed to be near-final, as Apple has already been seeding Mac OS X 10.6.6 betas to developers as well.

Stay tuned for additional details as they become available.

Tests demonstrate much-improved performance of iOS 4.2 on iPhone 3G handset

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Date: Tuesday, November 9th, 2010, 06:59
Category: iPhone, News, Software

For those of you hanging onto an iPhone 3G and hoping for something good to come out of the new iOS, there may be some good news in store.

Per TiPb, a recent series of tests has shown that the iPhone 3G’s performance is much improved under iOS 4.2:



According to the tests, entering text into Apple’s Notes app was acceptably snappy. Browsing the Web was also noticeably improved, especially scrolling and load times (over Wi-Fi). Some pinch-and-zoom was a bit laggy, but definitely worlds better than iOS 4.0 on a 3G.

Apple was recently hit with a class action lawsuit from California iPhone 3G user Bianca Wofford, who claims that Apple “…knowingly and intentionally released what it called a system software ‘upgrade’ that, in fact, made hundreds of thousands of the Third Generation iPhones (sic) that were exclusively tethered to AT&T data plans ‘useless’ for their intended purpose.”

iOS 4.2 is expected to be released this month with some media outlets citing the launch date as early as today.