The WSJ Says Verizon iPhone Is Real

  • Posted: 29 March 2010 06:41 PM

    Apple May Introduce New iPhone this Summer, Including Verizon Model (AAPL, VZ)
    11 minutes ago - Comtex Smartrend(r)

    03/29/10 - The Wall Street Journal is reporting that Apple (NASDAQ:AAPL) is developing a new iPhone to debut this summer and also appears to be working on a CDMA model for Verizon Wireless (NYSE:VZ).

    The WSJ did not specify where it received this information.

    AAPL is up over 236.xx in AH

    edit: here’s the WSJ article from their website.

    Two New iPhones Coming; One May Be Aimed at Verizon

    By YUKARI IWATANI KANE, TING-I TSAI And NIRAJ SHETH

    Apple Inc. is developing a new iPhone to debut this summer and also appears to be working on a model for U.S. mobile phone operator Verizon Wireless, say people briefed on the matter.

    While Apple has unveiled a new iPhone every June or July since launching the product in 2007, the new model with CDMA capability, the cellular technology used by Verizon, is notable because Apple and AT&T Inc. have long had an exclusive relationship with the iPhone. That has given AT&T a competitive edge over other carriers including Verizon for the last three years.

    The people briefed on the matter said one of the new iPhones is being manufactured by Taiwanese contract manufacturer Hon Hai Precision Industry Co., which produced Apple’s previous iPhones. The model that has CDMA capability, used by Verizon Wireless, is being manufactured by Pegatron Technology Corp., the contract manufacturing subsidiary of Taiwan’s ASUSTeK Computer Inc., said these people.

    One person familiar with the situation said Pegatron is scheduled to start mass producing the CDMA iPhones in September, but it was unclear when Apple might make the model available.

    Spokespeople for Apple, Pegatron, Hon Hai and Verizon Wireless, which is majority owned by Verizon Communications Inc., declined to comment.

    CDMA is a U.S. wireless technology adopted by Verizon, Sprint Corp. and a handful of operators in countries incuding South Korea and Japan. The vast majority of carriers world-wide?including Apple’s longtime U.S. iPhone partner AT&T Inc.?base their networks on the GSM standard.

    “There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven’t seen one yet and only Apple knows when that might occur,” said an AT&T spokesman.

    Write to Yukari Iwatani Kane at .(JavaScript must be enabled to view this email address) and Niraj Sheth at .(JavaScript must be enabled to view this email address)

    [ Edited: 29 March 2010 06:46 PM by chiefthinker ]      
  • Posted: 29 March 2010 08:33 PM #1

    I wonder how many extra sales Apple will get from people defecting from AT&T?

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    Posted: 29 March 2010 08:35 PM #2

    Nice $5.00 pop AH.  My concern is one of the big “selling points” (at least while on the ATT network) is being able to do other things online like browse the web while still on the call.  It’s my understanding Verizon’s CDMA network doesn’t support his.  Will this severely have an impact on CDMA version sales?  I guess we will find out.  Perhaps Verizon is addressing this before launch through some new technology.

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  • Posted: 29 March 2010 08:47 PM #3

    John Gruber’s take:

    The Wall Street Journal:

      Apple Inc. is developing a new iPhone to debut this summer and also appears to be working on a model for U.S. mobile phone operator Verizon Wireless, say people briefed on the matter.

    Keep in mind there?s a big difference between ?is? and ?appears to be?. And they have no actual details of the next-generation iPhone. Nothing. Not the A4-family CPU system-on-a-chip. Not the 960???640 double-resolution display. Not the second front-facing camera. Not even the third-party multitasking in iPhone OS 4. All they have is that there?s going to be a new iPhone this summer, period. Thanks for the scoop, Yukari Iwatani Kane.

         
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    Posted: 29 March 2010 08:52 PM #4

    incorrigible - 29 March 2010 11:35 PM

    Nice $5.00 pop AH.  My concern is one of the big “selling points” (at least while on the ATT network) is being able to do other things online like browse the web while still on the call.  It’s my understanding Verizon’s CDMA network doesn’t support his.  Will this severely have an impact on CDMA version sales?  I guess we will find out.  Perhaps Verizon is addressing this before launch through some new technology.

    I wonder if possibly Verizon will announce they’re switching to SVDO at the same time, so they can have voice & data.  Other than them switching to LTE, I can’t imagine it working any other way - unless they think their data infrastructure can handle VOIP.

    http://www.wmexperts.com/cdma-development-group-announces-svdo-handle-calls-and-data-same-time

         
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    Posted: 29 March 2010 08:55 PM #5

    NatasRevol - 29 March 2010 11:52 PM

    I wonder if possibly Verizon will announce they’re switching to SVDO at the same time, so they can have voice & data.  Other than them switching to LTE, I can’t imagine it working any other way - unless they think their data infrastructure can handle VOIP.

    http://www.wmexperts.com/cdma-development-group-announces-svdo-handle-calls-and-data-same-time

    Is that backward compatible with CDMA?  Don’t know much about wireless tech.

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    Posted: 29 March 2010 08:59 PM #6

    incorrigible - 29 March 2010 11:55 PM

    Is [SVDO] backward compatible with CDMA?  Don’t know much about wireless tech.

    My understanding is that it’s the next generation of EVDO. But I think it will require redoing the entire infrastructure to support 2 channels.

    So technically, yes, but probably not practically.  Moving to LTE still seems to make more sense (faster speed for similar implementation costs), but then why would there be a separate Verizon iPhone?  Maybe they’re implementing LTE differently than the rest of the carriers.
    http://news.vzw.com/LTE/Overview.html

         
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    Posted: 29 March 2010 10:27 PM #7

    rezonate - 06 March 2010 06:23 PM

    Steve’s big thing has always been user experience, so A+ will probably be faster, longer battery, more storage, better screen resolution, and *perhaps* better camera combined with software updates. Front facing camera - big maybe.

    Interesting that this would ‘leak’ now. Not sure how to take the rumor, but the features go along with what we discussed a while ago.

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  • Posted: 29 March 2010 11:58 PM #8

    I am a known skeptic on this subject.  Moreover, I am a layman when it comes to the technology.  So take what I write with a grain of salt.  I thought Kerry would beat Bush and twice bet on the Buffalo Bills to win the Super Bowl.

    CDMA is yesterday.  SJ does not target yesterday.  I believe that Verizon will get iPhone for LTE, and that it will not be in 2010.

         
  • Posted: 30 March 2010 01:38 AM #9

    Apple’s relationship with Verizon might never be as cozy as the relationship with Verizon, but I expect a Verizon deal. It provides Apple with the opportunity to blunt some of the growth in Android phones and Verizon has little choice but to pursue the iPhone.

    Expanding the iPhone relationships to include Verizon would also be a benefit to developers and furthering the Apple eco-system is in the company’s best interest.

    It does increase the challenges of supply chain management but it would increase domestic sales of the iPhone substantially. I’m not going to predict the timing of a deal, but I do expect it to occur sooner rather than later.

    First, though, is the iPad release.

         
  • Posted: 30 March 2010 02:49 AM #10

    adamthompson3232 - 30 March 2010 05:00 AM

    It really was just a matter of time. The supply chain management question really isn’t a serious concern weighed against the overwhelming economic advantages for Apple by offering a CDMA compatible phone.

    I was too coy in choosing my words. The economic benefits of a Verizon handset will outweigh the supply chain management risks. But the battle is beyond handset sales. It’s a battle of eco-systems and delivering the Verizon market to app developers for the iPhone would be a big competitive advantage in growing the base of developers and enhancing the economic opportunities for developers wedded to the platform.

         
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    Posted: 30 March 2010 03:16 AM #11

    capablanca - 30 March 2010 02:58 AM

    CDMA is yesterday.  SJ does not target yesterday.  I believe that Verizon will get iPhone for LTE, and that it will not be in 2010.

    That may well be so, but Verizon customers who have been craving an iPhone are slowly but steadily picking up other phones (Moto Droid, HTCs) and are getting used to them - and like them. It may not be possible to convert these users back. As an Apple shareholder, I’m worried that the iPhone is not part of a network that is in many ways considered the better one. I really wouldn’t mind seeing a 2010 deal on CDMA even if it gets replaced by an LTE version in 2011 (iPhone 5).

    Additionally, whether this makes technological sense or not, everybody and their neighbor’s dog are expecting an iPhone on Verizon this year. If it doesn’t happen when that “A-Plus” 4.0 upgrade is introduced, expect a major sell-off in the stock, iPad nothwithstanding.

    IMHO.

         
  • Posted: 30 March 2010 04:02 AM #12

    If you’re a front running naked shorting program trading heavyweight, you can’t afford to let reality take control of a stock. Therefore you must pre-leak/rumor everything you can think of that might move the stock to keep your tools effective and low risk.

    As a long term Apple supporter, I don’t think this “news” should move the stock. The Verizon situation is obvious, and I trust Apple’s management to play it optimally. You could even say that holding back from Verizon indicated Apple must see a bigger opportunity, and when a Vz iPhone ships it means the opportunity is no longer there. So the stock should fall. 

    In other words, I am totally cynical about this one.

    [ Edited: 30 March 2010 04:06 AM by sleepygeek ]      
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    Posted: 30 March 2010 04:12 AM #13

    Apple is not about to invalidate its prior ads about simultaneous voice + data on 3G just so it can get an iPhone on “the network” that has been no friend to Apple all this time BEFORE LTE comes along.

    Aside from LTE, which probably won’t have sufficient coverage area for quite some time yet IMHO (I’d say 2012 at the earliest), the only other way I see an iPhone coming to Verizon is an iPhone offshoot, such as an iPhone mini.  Even then, though, Apple loses the “advantage” afforded to it by being on the AT&T network.

    Being an investor, I’d love to be wrong, since the iPhone is bound to make a huge splash in the Verizon customer base.  I’m not holding my breath.

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  • Posted: 30 March 2010 06:46 AM #14

    The old Apple shell game.  Watch the Verizon shell thinking that is the one with the pea under it but it is really the China Mobile shell we should be watching imho. The biggest mobile network in China is under pressure and Apple will not cave. I expect to see a deal with China Mobile soon. China Unicom will soon have some competition distributing the iPhone….

         
  • Posted: 30 March 2010 07:43 AM #15

    So, the question of the day is:  Does Apple, Verizon or ATT come out and address the rumor?

    If the rumor is just a rumor, then ATT wants the rumor debunked, lest its sales suffer going forward.  Does Apple come out against the rumor?  ATT isn’t really the one to do so here.

    If the rumor is true, then everyone stays silent.  Verizon doesn’t need the rumor confirmed, as to do so, VZ could suffer more than gain from it, because its sales of DROID and RIMM phones will suffer during the intervening period.

    In other words, there’s a better chance of a denial than confirmation of a VZ phone.  Or just silence, which is what I expect.  Let AAPL run off of it.  I think it makes senses for VZ to get the new iPhone.  The fact that ATT was praised as a partner during the last earnings call doesn’t preclude a new VZ phone in late 2010.  For me, the praise DID seem to block a June 2010 start, however.