Yet more Verizon iPhone rumors
Although it has been a while since we outlined the latest rumors about a Verizon iPhone, that does not mean that the rumor mill has stopped. The latest overheard word still mentions January but has new reasons.
These rumors would not be so prevalent or popular if Verizon were not seen as the cures for the myriad ills ascribed to the AT&T wireless network and company operations overall. Survey after survey has ranked the iPhone as the very best in its class, with the only black mark being Apple’s choice of wireless provider. According to a PCWorld story, some new rumors have surfaced which have the iPhone coming to a Verizon store near you as early as January 2011.
One newly refreshed rumor has it that Apple is arranging to buy millions of CDMA chips from Qualcomm, which is odd because the iPhone and AT&T use GSM wireless technology. However, one quick guess should tell you who uses CDMA wireless tech. Right in one! Verizon runs a CDMA network. It stands to reason then, in many minds, that CDMA chips purchased by Apple are destined for a new iPhone model that will end up in the hands of Verizon. The only fly in the ointment is that if you look past domestic sales, there are a lot of CDMA networks elsewhere in the world.
Another part of the puzzle is a recent filing that Apple made with the SEC, who has been questioning the practices of cell-phone exclusivity. The filing contains the following points:
Offering a number of attractive handsets on an exclusive basis distinguishes us from our competitors. As these exclusivity arrangements end, we expect to continue to offer such handsets (based on historical industry practice), and we believe our service plan offerings will help to retain our customers by providing incentives not to move to a new carrier.
Although exclusivity arrangements are important to us, such arrangements may not provide a competitive advantage over time, as the industry continues to introduce new devices and services.
Also, while the expiration of any of our current exclusivity arrangements could increase churn and reduce postpaid customer additions, we do not expect any such terminations to have a material negative impact on our Wireless segment income, consolidated operating margin or our cash from operations.
All of this points rather clearly to a departure from the current exclusive agreement between Apple and AT&T. Although the exit direction is not quite as clear, it is very easy to make a case for Apple and Verizon making an iPhone deal. At the very least, all of this is quite entertaining.
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