Apple, Verizon Cited as Disagreeing Over Pricing Terms for 2010 iPhone

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Date: Wednesday, January 6th, 2010, 06:34
Category: iPhone

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With rumors of Apple and wireless carrier flying that the two companies are in negotiations over a summer 2010 CDMA iPhone launch, Verizon is apparently angry with Apple over pricing structures.

According to 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.

“We believe a CDMA-iPhone is also in the works,” Um wrote, “though believe Verizon Wireless and Apple may currently be apart on pricing.”

Um also stated that even if Apple and Verizon can’t arrive at terms, a CDMA iPhone is a possibility in 2010, as China and Japan include carriers which operate on CDMA networks.

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.

Though Qualcomm plans to release dual-carrier chips that would allow future phones to work on CDMA/EVDO carriers such as Verizon and Sprint, as well as rival 3GPP carriers using UMTS/HSPA+ technologies like AT&T and T-Mobile, those chips will not arrive until the second half of 2010. Some have said that timeframe would not allow Apple to release a dual-mode phone until 2011 at the earliest.

And others believe a Verizon iPhone deal is more wishful thinking than anything else. Given that both companies tend to be focused on consumer control, analyst Shaw Wu of Kaufman Brothers has predicted that the conflicting interests of the two companies would get in the way of an agreement.

Currently, it is estimated that Apple gets a favorable US$700 average selling price per iPhone, subsidized through exclusive carrier AT&T. Compare that with the ASP of the Motorola Droid, exclusive to Verizon, which costs an estimated US$450 per sale.

Stay tuned for additional details as they become available and if you have your own two cents on this, we’d love to hear them.

Probable WWDC, iPhone Announcement Rumored for July

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Date: Monday, December 21st, 2009, 06:21
Category: iPhone, Rumor

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Rumors make life interesting and a calendar listing for San Francisco’s Moscone Center has led to speculation that Apple’s annual Worldwide Developer’s Conference will coincide with the three-year anniversary of the original iPhone’s launch. Per AppleInsider, San Francisco’s Moscone Center Calendar lists a “Corporate Event” from June 28, 2010 through July 2, 2010 in the Moscone West hall. Previous Apple events have been reserved with the same title.

This year, WWDC 2009 ran June 8 through June 12. In previous years, the event has marked the introduction of new iPhone models. This June, Apple introduced the iPhone 3GS.

If WWDC 2010 does take place on June 28, 2010, it could be booked to coincide with the expiration of the current contract with wireless carrier AT&T. Recent reports have suggested that Verizon, the largest wireless carrier in the U.S., could offer a CDMA compatible iPhone next year.

For their part, Verizon officials said last week that their network would be capable of handling the added bandwidth from the addition of the iPhone. They did not, however, imply that the handset was coming to their network.

Another option could be T-Mobile. While the fourth-largest carrier in the U.S. does not have the size or stature of AT&T or Verizon, it is a GSM-based network, meaning compatibility with T-Mobile would be simple to accomplish with the existing iPhone hardware. Given the simplicity of such a move, some have predicted it to happen in 2010.

Rumor: Foxconn Tapped to Build Next-Generation iPhone for Mid-2010 Release

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Date: Friday, December 11th, 2009, 08:56
Category: iPhone, Rumor

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Taiwanese manufacturer and Apple favorite Foxconn has reportedly received an order to build the next-generation handset, likely to arrive in mid-2010. Per Mobile Review editor Eldar Murtazin’s Twitter post on Thursday: “Foxconn received order for next generation iphone.”

The timing makes sense, as Apple’s first three iPhone product debuts hit a June launch.

Despite there being some time yet until the next-generation iPhone debuts, there are plenty of rumors surrounding the anticipated device. In November, the first signs of a model “iPhone 3,1″ was tracked by a developer in its software usage logs, suggesting Apple was testing a new handset.

Apple has indicated it intends to overhaul its iPhone maps application with in-house developers. The company’s purchase of worldwide mapping company Placebase over the summer would likely play a part in any new features.

Reports have also said Apple is testing RFID swipe support in next-generation iPhone prototypes. Such technology would allow the phone to sense embedded chips without making direct contact. The feature could allow swipe payments with the phone at checkout at a store, or obtaining information from kiosks.

Apple is also expected to build its own proprietary iPhone chips based off of ARM’s A9 reference designs, thanks to the US$278 million purchase of chip designer PA Semi in 2008. The new iPhone could have multi-core ARM chips powering it.

Finally, the question of a Verizon-capable CDMA iPhone has surfaced. Conflicting reports have differed on the possibility of a dual-mode CDMA and GSM world phone debuting in 2010, though Verizon and chipset maker Qualcomm are said to have been in talks.

Stay tuned for additional details as they become available.

Kaufman Bros. Analyst Predicts Apple, Verizon Alliance Less Likely Than Anticipated

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Date: Wednesday, December 2nd, 2009, 06:27
Category: iPhone, News

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Even if Apple is striking a deal with Verizon (currently the largest carrier in the U.S.), competitors T-Mobile and Sprint might be more likely to carry the iPhone in 2010, one analyst believes. Per AppleInsider, Verizon is the top prize in terms of the four major U.S. carriers. Apple is currently in an exclusive deal with the No. 2 carrier, AT&T, which has 82 million customers. But that agreement is believed by many to expire in 2010.

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.

“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 US$611 and at AT&T, we estimate it is higher at roughly US$700. RIM, who is by far VZ’s largest smart phone supplier, only has an ASP of $340. Palm’s ASP is US$436 and we estimate Motorola’s Droid ASP is roughly US$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. That would make a potential 2010 deal unlikely.

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.

“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.”

This marks the second time this week an analyst has predicted Apple will jump to T-Mobile in 2010. In terms of technology, T-Mobile would be the simplest choice: Though carrier’s high-speed 3G connectivity operates on a unique 1700MHz spectrum that is incompatible with the current iPhone, the addition of that frequency to a future hardware model would be much simpler than adding compatibility with Verizon or Sprint’s CDMA networks.

Recent rumors have suggested Apple is working on an agreement with chip maker Qualcomm to add CDMA connectivity to a new iPhone in 2010. But both Verizon and Sprint use a technology that, unlike the GSM network of AT&T and T-Mobile, is not widely used abroad.

Another possibility noted by Wu is that Apple could extend its contract with AT&T through 2011. The analyst said he believes AT&T’s agreement ends in the summer of 2010, but a last-minute extension remains a possibility. Earlier this year, there were reports that AT&T was working to extend the contract with Apple for one more year.

Rumor: Apple Working on Next-Gen iPhone, Expanding Maps Application with New Hire

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Date: Monday, November 30th, 2009, 10:39
Category: iPhone, Rumor

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Hints as to a new iPhone hardware model have emerged online with a handset identifying itself as “iPhone 3,1″ was tracked by PinchMedia in its application iBART for San Francisco public transportation. Per MacRumors, iPhone 3,1 appeared in its usage logs during November.

The reference could signify a new iPhone model with major hardware changes, as Apple only changes the first number in a product’s identifier string when a significant upgrade is en route. The current iPhone 3GS carries the identifier iPhone 2,1 while the original iPhone identifies itself as iPhone 1,1, and the iPhone 3G (which featured minor architectural changes from its predecessor) is iPhone 1,2.

Apple’s use of the 3,1 indicator could imply major and distinct changes, a practice that it also uses with its Mac lineup. References in software to an iPhone 3,1 have existed for some time, but the alleged use of the unreleased hardware would be a first.

Early this year, signs of iPhone 2,1 began appearing online. That hardware was eventually released months later, in June, as the iPhone 3GS.

Apple has released all of its iPhone updates in the summer. Recent rumors have suggested that the company could release a Verizon-capable phone in 2010.

Also revealed this weekend was a new job listing from Apple for a software engineer to work on the iPhone Maps application. The listing seeks a full-time employee to work in Cupertino, Calif., on the software:

“The iPhone has revolutionized the mobile industry and has changed people’s lives and we want to continue to do so,” the listing reads. “We want to take Maps to the next level, rethink how users use Maps and change the way people find things. We want to do this in a seamless, highly interactive and enjoyable way. We’ve only just started.”

The description is particularly interesting given that Apple quietly purchased a Google Maps competitor, Placebase, this summer. The worldwide mapping company offered products that would aggregate data on subjects such as demographics, home sales, crime, mortgage lending, school performance and more.

In addition, the existing Maps application has also served as a point of contention between Apple and Google. Apple rejected the Google Latitude app because it was reportedly thought the software would only be confused with the default Maps application. Google instead released a Web-based version of the software.

Google has added additional functionality to its own Android-powered handsets with Google Maps Navigation, a free turn-by-turn voice guidance system part of the new Motorola Droid. Google has stated its intent to bring the software to the iPhone, if Apple approves.

AT&T Files Suit Over Verizon “Map” Ads

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Date: Wednesday, November 4th, 2009, 04:46
Category: iPhone 3GS, Legal

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Ad campaigns will always be snarky, but there are some areas you don’t want crossed. Per AppleInsider, AT&T has filed suit over Verizon’s “There’s a Map for That” advertising campaign, claiming Verizon is misrepresenting AT&T’s coverage areas.

The suit seeks a temporary restraining order and a injunction to stop Verizon from “disseminating misleading coverage maps” of AT&T’s areas of cellular and data coverage. AT&T is also seeking damages in the suit.

The “Map” advertisement displays two competing 3G coverage maps, in which the Verizon coverage area is clearly more widespread than AT&T’s coverage area. The suit contains an AT&T commissioned survey of the ads which found that 53% of those asked interpreted the non-colored areas of the maps to be total gaps in coverage.

AT&T cites that the company had previously contacted Verizon directly on Oct. 7, requesting that the ads be withdrawn or modified, according to the suit. Verizon responded by dropping the words “out of touch” from the ads and included the phrase “Voice & data services available outside 3G coverage areas” in small print at the end of the advertisements.

The complaint lists two TV spots currently airing, dubbed “College” and “Bench,” as well as a print advertisement that has run in various publications.

“The map attributed to AT&T shows large swaths of white or blank space, as if these are areas in which AT&T has no coverage whatsoever,” the suit reads. “By depicting AT&T’s non-“3G” coverage as white or blank space in the map used in Verizon’s print advertisement, consumers are being misled into believing that AT&T’s customers have no coverage whatsoever and thus cannot use their wireless devices when they are outside of AT&T’s depicted coverage area.”

The complaint was filed Tuesday in an Atlanta, Ga., federal court, and requests a temporary restraining order against Verizon to prevent the ads from continuing to air. The suit notes that the ads are airing during the “most vigorous and important marketing season for the wireless industry.”

AT&T claims that the ads in their current form convey the message that AT&T has no coverage in the areas that are blank on the 3G maps that are shown. AT&T contends that the 2.5G (EDGE) network is available in a much wider area, so to imply that there is no coverage is misleading.

According to Reuters, Verizon has responded, saying that the suit is without merit and the advertisements are intended to show 3G coverage only: “The ads in question clearly state that voice and data services are available outside 3G areas.

Rumor: Apple May Switch From AT&T to Verizon as Official iPhone Carrier

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Date: Wednesday, October 28th, 2009, 08:51
Category: iPhone, News, Rumor

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Should Apple end its exclusive carrier agreement with AT&T next year, it will likely mark the end of its estimated US$450 carrier subsidy for the iPhone, a new analysis has forecast.

Per AppleInsider, 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. According to Marshall’s note to investors, the analyst believes that the iPhone will be added to the Verizon network in the second half of 2010, but not without consequences.

A non-exclusive iPhone, Marshall forecast, would command roughly a US$300 carrier subsidy. 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 US$500, which would account for another US$7 billion in revenue for Apple.

“While AAPL started off with exclusive arrangements in 2007 with the original iPhone launch, the company has since migrated towards multiple carriers per region,” the note said. “In our view, diverse carrier support is a key element to driving global penetration of the iPhone (from ~3% share today of the total handset market). Therefore, we believe the chances are high the iPhone will find its way onto the VZ network in 2H10.”

Marshall’s assumption of 14 million Verizon iPhones is based on the performance Apple has had on AT&T’s network. Within six quarters of the iPhone’s launch, the handset has become 4% of AT&T’s postpaid subscriber base.

In the September quarter, the iPhone was said to represent more than 90% of AT&T’s total postpaid additions — an increase from 57% from a year earlier, and 33% in September 2007. It is based on the strength of the iPhone that AT&T has posted subscriber gains on market leader Verizon, adding 2 million customers last quarter to Verizon’s 1.2 million.

AT&T activated a record 3.2 million iPhones last quarter, of which nearly 40% were customers new to the wireless carrier. But CEO Ralph de la Vega also predicted that the iPhone will not remain exclusive to AT&T forever, though he believes his company’s portfolio will remain strong after the device jumps to other carriers.

T-Mobile, Orange May be Arranging to Sell iPhones to UK Marketplace

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Date: Tuesday, July 14th, 2009, 04:56
Category: News

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Across the pond, wireless carrier O2’s exclusivity deal within the UK marketplace may be coming to an end within the next few months. According to MacNN, competitor T-Mobile stated that it’s already in negotiation with Apple and could begin carrying the iPhone 3G within a matter of months. The iPhone 3GS has not been mentioned by T-Mobile so far, nor is it said to have been brought up by Orange, also rumored to be pushing for UK sales.

Like the United States, the UK has had only one official iPhone carrier since 2007, in spite of an increasing number of foreign countries hosting multiple carriers. The existence of competitive iPhone providers is thought to be beneficial to both Apple and the public, driving down prices and forcing carriers to bend to Apple’s restrictions. For carriers however the open market can hurt profit margins, and invalidate millions in currency paid to secure exclusive rights.

Multiple US carriers may not arrive until at least 2011, when LTE (4G) networks are slated to go live through AT&T and Verizon.

Rumor: Apple Could be Developing iPhone Lite, “Media Pad” for Summer Release

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Date: Wednesday, April 29th, 2009, 08:18
Category: Rumor

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It came from the very depths of Rumorville, but it’s interesting stuff.
Per BusinessWeek, two anonymous sources have stated that Apple and Verizon may release two new Verizon-exclusive iPhone-like products as early as this summer.
The rumors go hand-in-hand with recent talk that the iPhone is coming to Verizon, and that Apple has new devices up its sleeve for the summer.
The first device has been described as an iPhone nano of sorts and may function as a smaller, less expensive iPhone handset. The “iPhone Lite”, as it’s been coined, is smaller and thinner than the existing iPhone and will come cheaper because it “relies on a so-called system on a chip, which incorporates many types of chips and drives down the cost of silicon in such devices.”
The other device is a “media pad” which features the same functionality as an iPod Touch – music, games, photos – but with HD video and calling ability via a Wi-Fi connection.
The sources told Business Week that the device will be smaller than Amazon’s Kindle 2 ebook reader, but feature a larger touchscreen, paving the way for more speculation about Apple entering the eBook market.
“The media pad category might go to Verizon,” a witness told Business Week. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”

Rumor: Apple, Verizon in Talks for 2010 iPhone

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Date: Monday, April 27th, 2009, 08:34
Category: Rumor

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Despite its exclusive contract with carrier AT&T, Apple is now claimed to be in discussions with Apple for its own version of the iPhone in 2010.
According to USA Today, anonymous sources familiar with the negotiations stated that Verizon reportedly entered serious talks before Steve Jobs’ hiatus and has been continuing those talks even with Jobs temporarily sidelined for medical reasons.
Other than a 2010 target release window, little else has been divulged by the apparent insiders.
Though not explicitly stated, the article infers that the phone would be a CDMA device compatible with Verizon’s existing network and therefore using EVDO for its 3G Internet access. Such a move would give the phone broad coverage but directly contradicts Apple COO Tim Cook’s own dismissal of CDMA last week. During a previous speech regarding iPhone expansion plans, the executive justified the absence of a CDMA model by arguing that a single, GSM phone model is easier to produce than building a separate version for a relatively small batch of customers. Cook also sharply criticized CDMA by asserting that it has no future, as most CDMA carriers plan to phase out the calling technology in favor of the same 4G standard that will be used on GSM networks.
A direct leap to a 4G seems more liekly and Verizon chief executive Ivan Seidenberg recently explained that a deal is more likely for a phone with the advanced networking technology as it would let Apple continue making one phone but still service North American carriers that are for now off limits.
Verizon has stated that it plans to officially launch its commercial 4G network in early 2010 and would therefore have at least some of its network ready for an iPhone by the time AT&T’s exclusivity term ends, which is likely for the same year.