Verizon To Sell CDMA iPhones From Early 2011
Wall Street Journal has just reported that Apple will start mass producing CDMA iPhones for Verizon by the end of 2010.
Wall Street Journal claims that according to ‘people briefed by Apple’ Verizon will start selling the CDMA iPhones, which will be similar in design to the iPhone 4 from early next year.
The new iPhone would be similar in design to the iPhone 4 currently sold by AT&T Inc. but would be based on an alternative wireless technology called CDMA used by Verizon, these people said. The phone, for which Qualcomm Inc. is providing a key chip, is expected to be released in the first quarter of next year, according to the same people.
Speculations over AT&T losing its exclusive carrier status to Verizon have been doing the rounds for a long time.
As we have mentioned earlier, there are a few reasons why the rumor may turn out to be true this time around:
AT&T iPhone Upgrade Eligibility Status:
AT&T surprised its subscribers ahead of the iPhone 4 launch by advancing the upgrade eligibility status for several users by six months. This, along with the revised early termination fee, could be an indication that Ma Bell is bracing itself up for competition from Verizon. By advancing the upgrade eligibility of its subscribers, AT&T may have ensured that these customers do not migrate to Verizon when the carrier launches an iPhone six months from now.
Scope For Offering Upgrades:
Verizon's LTE network is expected to be launched in select markets by the end of this year. However, this next-generation service is likely to roll-out nationwide only by the end of 2011. The launch of a CDMA iPhone in early 2011 will give Apple an opportunity to offer an upgraded iPhone with LTE capability in the latter part of 2011. Apple has successfully followed this upgrade strategy in the past quite well.
Competition from Android:
It has often been argued that CDMA is a dying technology and that Apple may not partner with Verizon until LTE is rolled out. However, this decision may prove costly in the light of the growth of the Android platform, especially since AT&T is considered as a major weakness of the iPhone. So Apple needs to partner with Verizon to counter the threat from Android. While this argument may not support the latest speculation over the January 2011 launch, it is apparent that Apple should launch a Verizon iPhone sooner rather than later. Apple had announced that it sold over 1.7 million iPhone 4s within just three days after it was launched. We can't even imagine what the numbers would have been if iPhone 4 was available on Verizon.
Will you be jumping ship when Verizon starts selling iPhones? Do you want the next generation iPhone have a different form factor?
- Fortune: Verizon To Sell CDMA-Based iPhone 4 From Early 2011
- Rumor: Verizon iPhone Launching In January 2011
- Apple Has Ordered Qualcomm CDMA Chips For Verizon iPhone Launch In January 2011?
- Verizon Activated 2.3 Million iPhones In Q2 2011; Expecting iPhone 5 This Fall
- Foxconn May Join Pegatron To Manufacture CDMA iPhones; Secret iOS 4.2 Conference Scheduled Next Week?