Analyst: No iPhone for Verizon

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Despite Verizon's interest carrying the iPhone, don't expect Apple to strike a deal with the cell carrier any time soon. Motorola's Droid smartphone and Verizon's anti-iPhone commercials are two indicators that an iPhone deal isn't on the way, according to the Gerson Lehrman Group.

"Verizon would not launch such an actively negative campaign if they were trying to obtain the iPhone," the report said. "You don't make friends, even in the business world, by denigrating someone."

The report added that if Verizon carried the iPhone it would negatively impact Droid sales, and Motorola "tied their future to the Droid and to Verizon, much as Palm has with the Pre and Sprint."

Apple also isn't likely to design a new version of the iPhone just for Verizon's network. The iPhone supports GSM-based cell technology, which includes support around the world. Verizon's CDMA technology, however, is limited to only a few countries.

Verizon's history of forcing cell phone makers to use its proprietary OS and to limit phone features wouldn't fly with Apple, either.

Despite Apple's strong position, the Mac and iPhone maker wouldn't likely want to hurt its relationship with AT&T, and that's a possibility if a Verizon deal materialized. AT&T's dependence on the iPhone will also likely lead to continued deals with the cell carrier that work in Apple's favor.

Even though Verizon has said it would be interested in striking an iPhone deal with Apple, the company is making it appear like it knows that isn't going to happen. "It's not likely that the iPhone will appear on the Verizon network in the next few years, if ever," the report said.

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18 Comments Leave Your Own

Jeff Gamet

No iPhone on Verizon? My Jedi instincts tell me the iPhone will most likely stay exclusive to AT&T in the U.S. until after the 4G network rolls out. That means we have at least another year before AT&T’s exclusive deal could end.

Lee Dronick

“Verizon’s history of forcing cell phone makers to use its proprietary OS and to limit phone features wouldn’t fly with Apple, either.”

Has Verison crippled any features of the Droid? I don’t think so, but I am not certain of that.

Anyway, I would say that at least for the next few years that the iPhone will be exclusive to AT&T.

Tiger

It’s worth remembering, Verizon had first crack at the iPhone and passed on it. Swallowing that mea culpa has been a hard pill.

Now, they just go with the hemorrhoid. I mean Android.

Nemo

Dear Sir Harry:  No, I don’t believe that Verizon has disabled any of the features that are common to today’s smartphones, but all of us and particularly Google have the iPhone to thank for that.  The iPhone’s success has forced Verizon to accept features in the Droid, such as WiFi, Bluetooth, a third party applications store, at least co-branding, etc., that it had adamantly refused to accept before the iPhone.  To field a competitive smartphone, Verizon must now accept features, capabilities, and branding in the Droid that it had refused to accept and that it doesn’t want.

However, this doesn’t help Android’s OEMs very much because they all run the same OS, Android, with the same features, which means that they are all fungible and, therefore, have very little bargaining power with Verizon.  If any of them, Motorola or Samsung, for example, gets too sassy, Verizon can simply pick another maker of Android smartphones. 

Verizon can’t do that with Apple and its iPhone.  So, as long as Apple can produce a superior smartphone and other mobile devices that outperform their competitors in winning market share, Verizon must accept Apple’s non-negotiagle terms, or Apple can deal exclusively with AT&T.

XSemperIdem5

I was afraid that Verizon being Verizon they would disable WiFi on the Droid so I emailed them and their rep stated that the WiFi is enabled. I will wait and see how the Droid turns out, if any problems are discovered; then I might get it. The only thing I fear is battery life. I had a previous bad Motorola batter experience. As much as I do love my iPod touch, I don’t think I would want an iPhone. I still like having some buttons to press grin

Charlie

Has Verison crippled any features of the Droid? I don?t think so, but I am not certain of that.

Anyway, I would say that at least for the next few years that the iPhone will be exclusive to AT&T.

Yeah exactly what i was thinking when i read this. Verizon has left off VZ navigator(thanks to the Google App) and they left off for the first time i can remember V-Cast- for the new DROID… i think they would do the same for Apple.
And Apple is already dropping exclusivity with carriers all around the world… why not here(many people can’t stand AT&T) Apple and Verizon would both be winners here.  And Verizon doesn’t care about which phone they sell as long as it brings customers and there will be fanboys for the Android phones and for the iPhone why not have both- don’t you think the Droid may reduce the amount of Blackberries VZ sells…? Guess they should have thought about that and not sold the droid
Apple wouldn’t design a version of the iPhone to reach Thousands of new customers?... Why? and wasn’t the iPhone offered to VZ first- so most likely they have already built one and tested it… just have to put it into production. And isn’t VZ rolling out LTE starting at the beginning of 2010 anyway?
I don’t agree with this article at all.
It is still very likely the iPhone will make it’s way into VZ.  There is too much of a DEMAND- Many of the ATT iphoners are VZ switchers.

Lee Dronick

I don?t agree with this article at all.
It is still very likely the iPhone will make it?s way into VZ.? There is too much of a DEMAND- Many of the ATT iphoners are VZ switchers.

We do not know the details of the Apple-AT&T contract. It may not simply be a matter of Apple going to other carriers, there may be an exclusive deal with AT&T. As to people not liking AT&T, well that may be, but never the less there are a lot of people buying iPhones and signing with the prescribed carrier.

Charlie

We do not know the details of the Apple-AT&T contract. It may not simply be a matter of Apple going to other carriers, there may be an exclusive deal with AT&T. As to people not liking AT&T, well that may be, but never the less there are a lot of people buying iPhones and signing with the prescribed carrier.

Yes but even AT&T has recently stated they their exclusivity is ending…(it is a time limited exclusive deal) Apple had exclusivity to other carriers around the world which has just recently ended and Apple decided to open the iPhone up to other carriers. Many features Apple has been pushing has been held back due to ATTs crappy network- such as tethering- which is available in other countries…  AND yeah people are signing up for ATT… Because of the iPhone not because of ATT in anyway. I too thought about switching but found out through a friends iPhone that ATTs service doesn’t even reach my house… and VZ is clear as a bell… Anywho many will switch back to VZ if they ever do ever get the iPhone and some will switch back for second best… the Droid-

Lee Dronick

es but even AT&T has recently stated they their exclusivity is ending?(

See this story

Charlie

See this story

The story is a little dated… and there are many more factors pointing to a APPLE & AT&T break up… even AT&T Mobility CEO Ralph de la Vega has stated that the exclusivity is ending… but did not say when… these things aren’t usually even commented on until they are near. If Apple continues to do what they have done with other carriers around the world they will not extend the contracts and they will offer the phone to other carriers. Apple doesn’t want AT&T’s bad rep to effect the outlook of their product especially with the new droid coming out on Verizon’s network. The best way for them to compete with this is to get on the same network to even the grounds-

Lee Dronick

Wishful thinking Charlie.

Don

The Droid on VZ can’t do voice and data simultaneously. You can’t talk and look at GPS app or a web page. “Hey boss, I have to hang up, now, so I can see how to get to my next appointment.”

Bill

I like ATT and found they had better customer service than Verizon [ I had Verizon for years]. Coverage in New Jersey with ATT has been no different than Verizon for me. I replaced my Treo with an iPhone and like it. I’ll be buying my wife an iPhone for XMAS.

Douglas

I don’t see Verizon with the IPhone.  As far as some saying that Verizon would hurt sales of Blackberry by offering the droid are incorrect.  Two different types of phones, yes both smartphones, but different.  Droid is more based for Consumers, Blackberry Business Customers, sure Blackberry crossed over into average Consumer market, but the phones are different.  IPhone is something that was origionally designed for Verizon.  Verizon decided to pass on the IPhone.  They missed the boat.  It’s just that simple.  Eventually the IPhone will be available to all carriers, but not for a long time.  Apple has expressed that it is more than happy with AT&T.  While the powers that be at AT&T have stated that the exclusive deal will end one day - true.  They did not however say that a new deal may be in the making.  I don’t want to see the IPhone on Verizon.  They are horrible in customer service, now i know that people will say that you would deal with Apple, but come on, why do you think Verizon went with Android OS they can still retain control on the customer service end of the phone, not giving up any control to a manufactorer of the phone….so my two cents….later, and yeah i WORKED for Verizon, and it’s just a game with these rumors….

iJack

”..Verizon’s anti-iPhone commercials are two indicators that an iPhone deal isn’t on the way”

Do you mean the,“there’s a map for that” commercials?  Those aren’t anti-iPhone - they’re taking a jab at ATT.

vince7

Do you mean the,?there?s a map for that? commercials?? Those aren?t anti-iPhone - they?re taking a jab at ATT.

I agree with you on this one.  That Blue map looks tempting to all of the poorly served iPhone users.  Also Charlie has it right too.  If Apple did originally approach Verizon with the iPhone, then they are prepared to deal with CDMA.  Many seemed to forget that Apple also had Intel based computers in the lab before jumping to Intel.

In the end it will be about units sold.  Both AT&T and Verizon should be happy that the iPhone can’t be easily used with both networks.

Charlie

Verizon decided to pass on the IPhone.? They missed the boat.? It?s just that simple.? Eventually the IPhone will be available to all carriers, but not for a long time.? Apple has expressed that it is more than happy with AT&T.? While the powers that be at AT&T have stated that the exclusive deal will end one day - true.? They did not however say that a new deal may be in the making?.

I don’t think Apple is really happy with AT&T they have shown this many times over. Every time they have announced new features they have to say that while most carriers around the world will roll out this feature right away- AT&T will be rolling this out later(such as tethering, which is still to be released by AT&T) And these other carriers around the world who have been rolling out these features as Apple as released them have now lost their exclusivity… I think Apple will follow with this business plan and when the original contract is up(which is widely thought to be 2010 for AT&T) they will open it up to other carriers… now i don’t know if Verizon will get it but I think its pretty obvious that “other carriers” will such as T-mobile who already offer the iPhone in other countries.

Charlie

I don?t want to see the IPhone on Verizon.? They are horrible in customer service, now i know that people will say that you would deal with Apple, but come on, why do you think Verizon went with Android OS they can still retain control on the customer service end of the phone, not giving up any control to a manufactorer of the phone?.so my two cents?.later, and yeah i WORKED for Verizon, and it?s just a game with these rumors?.

I don’t know why anyone would say they don’t want the iPhone on a different carrier…. that keep prices down and competition up even if you want to stick with AT&T.
Customer Service is another thing true enough, but just because AT&T tells me that sorry i don’t have service at my house a little nicer than Verizon- doesn’t mean beans to me. I have been with Verizon and get tired of having to let At&T customers use my phone anytime we go anywhere outside the city. Sure At&T work great in urban areas but if you travel good luck… Good thing about Verizon is that i don’t have to deal with their customer service… i NEVER have a problem. Now i know that differs from place to place. But when i travel it is my phone everyone is borrowing.

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