Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Apple Inc. (Nasdaq: AAPL) will escalate the war for smartphone dominance in early 2011 by releasing a new version of its iPhone to run on the popular Verizon Wireless (NYSE: VZ) network, the biggest U.S. carrier by subscribers.
However, the phone won't make it out in time for the Christmas season, as many had hoped.
Apple will be ramping up to mass produce the new touchscreen handset by the end of 2010 and release it in the first quarter of 2011, people familiar with the matter told The Wall Street Journal. While the phone would be similar to the iPhone 4 sold by its current carrier, AT&T (NYSE: T), it would be based on an alternative wireless technology used by Verizon, the people said.
The Verizon iPhone will mark the end of AT&T's agreement with Apple that gave the telecommunications giant exclusive rights to market and sell the handset since 2007, when Apple Chief Executive Steve Jobs introduced the original iPhone.
Verizon has been testing its networks and capacity to handle the heavy data load by iPhone users, seeking to avoid the kind of bad publicity that plagued AT&T after booming sales of data-hungry iPhones crippled its network.
AT&T's iPhone customers have complained endlessly about dropped calls and poor service, especially in the user-heavy cities of New York and San Francisco.
Verizon's network is untested in terms of whether it can withstand millions of iPhone users, but studies by Consumer Reports and others have concluded Verizon has a better network than AT&T, The Journal reported.
By making the iPhone available to Verizon customers Apple is striving to fend off an assault on its business from several fronts. The move is expected to help the iPhone compete in its battle with Google Inc.'s (Nasdaq: GOOG) Android software, which has made significant inroads on Apple's market share.
The innovative iPhone and its operating system software package, known as iOS, was knocked from its lofty perch among U.S. technophobes by Google's Android handset software in the second quarter of this year.
While Apple is on track to sell 40 million iPhones across the globe this year, it is under pressure in the United States from Android. Android handsets, which have been heavily promoted by Verizon, had 27% of the U.S. market in the second quarter among new U.S. smartphone users, compared with 23% for iOS, market research firm Nielsen Co. said on its website.
Android's startling success may mean Google will overtake Apple's iOS globally earlier than previously expected, Will Stofega, program director at research firm International Data Corp. (NYSE: IDC) in Framingham, Massachusetts told Bloomberg. Earlier this year, IDC said it expected Android to overtake iOS globally in 2011.
And in its boldest move yet to return to prominence in the mobile business, Microsoft Corp. (Nasdaq: MSFT), recently unveiled a lineup of smartphones that use its revamped Windows Phone 7 mobile-operating system.
The software giant spent two years developing the new operating system as the centerpiece of its assault on the crowded smartphone market, where it has struggled to gain a foothold.
Still, the iPhone may get a significant boost from Verizon's customers, according to analysts and polls.
Many Verizon customers have been clamoring for the iPhone for years, and iPhone lovers in New York – a Verizon stronghold – were thrilled by the news.
"I love the iPhone, but AT&T's coverage is terrible compared to Verizon," Victoria Tlot, a St. John's University student told The New York Daily News. "If Verizon comes out with the iPhone, I'm going to switch."
Verizon could add more than 10 million U.S. iPhone customers, Toni Sacconaghi, a Sanford Bernstein analyst, told The Journal. And a poll by ChangeWave, which surveyed 1,212 new smartphone owners, showed that 34% of consumers would have opted for an iPhone instead of a different smartphone had it been available through their carrier.
"The results show the continuing threat the iPhone poses to the rest of the industry," said ChangeWave Vice President of Research Paul Carton.
Separately, Apple is developing a new, fifth-generation iPhone model, anonymous sources told The Journal. It was unclear how soon that version would be available to Verizon or other carriers.
News & Related Story Links:
- Wall Street Journal:
Apple Readies Verizon iPhone - Money Morning:
Google's Android an iPhone Killer? - Money Morning:
Hot Stocks: Windows Phone 7 Will Give Microsoft a Boost - Bloomberg:
Google's Android Passes Apple Among New U.S. Users - New York Daily News:
iPhone coming to Verizon next year - Christian Science Monitor:
Phone 4 envy: 34% of consumers would switch to Apple, if their carriers allowed it
I think apple is best releasing it for pre order early so they can get an idea on just how many they will need. Just a thought.
Mr. Miller is an idiot for such reporting.. try and gather some NEW and accurate intel..
"And a poll by ChangeWave, which surveyed 1,212 new smartphone owners, showed that 34% of consumers would have opted for an iPhone instead of a different smartphone had it been available through their carrier."
1212 smartphone owners equate to 34% of consumers.. very misleading and inaccurate reporting.. that's a completely moronic statement.. not surprised!! :(
Ironically, it is your comment that is "moronic". The quote doesn't say or imply that 1212 equates to 34% of consumers. The 1212 new smartphone owners polled is a sample that represents the population. I would encourage you to take a course in statistics before spouting your mindless dribble any further across the internet. Thank you.
I think that all the hype is just that hype. Although I would love to have the Iphone on the Verizon network I just can't see it happening in the foreseeable future. I saw a commercial the other day for the Kindle reportedly they have an Android application and a Blackberry one as well. I also saw a interesting Verizon commercial as well stating that they are rolling out their LTE network next month. So while interesting in theory I just can't see Verizon network getting the iPhone until they get all bugs worked out of the LTE upgrade.
I think the rumors of a Verizon Iphone are just that, I think it' to stop the bleeding of customers that Verizon is having. I'm not the only one thinking that way. The rumors are designed to keep their customers holding in there with them for what another year? Bull!
I think it is rather too late for Iphone to come out for Verizon. I have been a Verizon customer for 11 years now and still waiting for an Iphone. It's true that Verizon will get a boost in sales when the Iphone comes out, but with all the Android phones out there, it won't be as high. If it came out before the Android, then that's a different story. I have been contemplating on switching to ATT just for the Iphone buit it is not worth it. Verizon Iphone will probably be a hit but Android always comes with… Read more »
I could not disagree with you more — if you yourself is waiting for an iphone — why wouldn't you get one? Sorry but the droid was just a copy of the iphone.
NO report has ever said that it would arrive by christmas.
Wow Apple really has Verizon by the short and Curly's don't they? If any of the rumors are even remotely true this whole secrecy thing is just stupid. Yes I want and iPhone and my contract is up with Verizon just before X-mas. Will be switching to At&t to get the iPhone as I am not going to wait and hope that Verizon get's it. If they are going to get it then JUST SAY IT!!!! I'd wait a little longer and not have to deal with the hassle of switching carriers if they would just say "YES we are… Read more »
Hmm. Did you *read* the article? If anyone has anyone by the "short and curly's" it's Verizon who has Apple compromised. The real reason Apple is very interested in this courtship is the success of the Android line of phones, which incidentally is heavily promoted by Verizon. You can argue all you want which phone is better (and trust me they both have their cult followings), but the bottom line is that Android threatens Apple's market share on the smartphones. Verizon is more than happy to get by selling their huge line of Androids and Blackberries. It's still the biggest… Read more »
As great as the andoid phones are, they always have a qwerty keyboard because their touch screens always suck. Apple had another company that focuses on touch screen innovation design the screen of their product and it shows, I have used most of the smartphones out there and they don't compare to the accuracy that the iphone has achieved. Along with that their operating system is fantastic, I haven't used the word prediction on newer phones but on my envtouch i cant even type normal speed because the predicting causes it to skip letters. If the iphone is released for… Read more »
Anyway, I will be waiting for the arrival of the verizon iPhone, although I like also like another verizon phone, but the huge apple app market attract me all the time, which is full of surprise and exciting, at the same time, I almost can enjoy all kinds of video just with my iphone if i get an Aneesoft video converter! That great! so, the verizon iphone, coming soon!
Android is not a phone, it is an OS. The iPhone is not an OS, but a phone, a phone with an exclusive OS. The iPhone hardware and its' OS are a package that can't be one without the other. While, it is true that we can install Android OS on iPhone hardware, it becomes more difficult to do the comparable opposite of installing iOS on an phone powered by Google Android OS because of hardware incompatibilities and network incompatibilities. That Verizon uses a different network technology, one that is licensed from Qualcomm who holds the patents on CDMA used… Read more »
Have had several Android phones with Verizon. Been with them for years and am seriously thinking about switching to AT&T for the iPhone if Verizon doesn't get it soon. Right now I am back to using my Blackberry because Android doesn't get me my email and messages like I would like, but Blackberry has almost no apps and a terrible camera. I would LOVE for Verizon to get the iPhone! Wish it was going to be before the end of the year, but I will wait a few more months since I have an upgrade due at the end of… Read more »
For those considering a switch from Verizon or another carrier to ATT in order to get Apple iPhone capability, just remember that where there is no ATT coverage, there will be no iPhone function either. ATT coverage is lacking in most of Ohio where I spend most of my time. If I get more than a couple of miles away from an interstate highway, there is no coverage. I was suckered into an ATT contract on the basis that it covers more states in the USA than its competitors, and that is true, but the areas of coverage by ATT… Read more »
There should not be any sale issues with the iphone due to android devices. Every carrier carrys a great android device. They make more sales by being available to multiple carriers not just one. Who cares if it comes out or not its a great phone, so are many others
I'm currently a Verizon customer. Just received my New Every Two Credit & saving it for the mythical Verizon iPhone. My contract is over with Verizon at the end of March. If they have not gotten or confirmed iPhone rumors before then, I'm switching.
I just bought the black erry storm! Can't wait for the I phone to come out on verizons lol I will run over my blackberry with a car just to get my hands on the I phone thru verizons I don't care if the thing cost ten thousand dollars I will camp out for a month in front of the verizons store!
Great news can't wait. Edan Aharony
i really really really cant wait for the Verizon iPhone!!! my mom my sister and I are due for an upgrade at the end of december so we're hoping the iphone comes out early 2011 for verizon! i'll be so sad if it doesnt come but i will not be switching from verizon to att just for the iphone.. i'll wait.. i love you verizon & apple please dont disappoint!
If you could trial an IPhone with your favorite carrier and an Android based smartphone on the same carrier for a month, could you ever see someone choosing the Android OS over the IPhone? As a 3yr Iphone user, I recently switched to an Android phone due to unacceptable AT&T service. I am completely dissatisfied with the Android platform. It's clunky and non-intuitive. In this day and age, smart phones have become an extension of ourselves in everyday life. An iPhone is like your favorite pair of jeans. Android is like an itchy wool sweater that looks cool, but you… Read more »
i feel that the iPhone for verizon is mainly going to be for people that can upgrade at the time it comes out. I myself will be able to upgrade at the time it comes out so I will be getting one. As for people that already have androids and any other kind of droids. Those of you that have droids and androids, google is thinking about buying apple anyways, so everything will eventually be running on the same network. So all the arguments about the iPhone arent necessary.