Wednesday, October 6, 2010

Verizon gearing up for iPhone launch next year

As speculated earlier, According to Wall street journal, Apple is making a CDMA version of iPhone that Verizon Wireless will sell early next year. So this means an end to the exclusivity with AT&T, and a huge blow to AT&T. Too me its no brainer decision. If Apple stays with AT&T, they are going to loose big-time to Android. This should be one of the compelling reasons why Apple should be spreading their wings across multiple operators. Launching with Verizon is going to be a big leap for Apple in terms of volume and revenue. The plan is to begin mass production of new iPhones by end of the year, and release the same in the first quarter of 2011. The new iPhone will resemble the iPhone 4 currently sold by AT&T.

Some interesting tidbits from the article:

At a press conference Wednesday, Verizon Communications Inc. President Lowell McAdam declined to comment on whether his company would soon sell an iPhone. "At some point our business interests are going to align," he said, referring to Apple. "I fully expect it, but I don't have anything to say."

A spokeswoman for Apple declined to comment. The Wall Street Journal in March reported on Apple's plans to build an iPhone that works on code division multiple access, or CDMA, technology used by carriers like Verizon Wireless and Sprint Nextel Corp.

Toni Sacconaghi, a Sanford Bernstein analyst, estimates Verizon could add more than 10 million U.S. iPhone customers, adding it could help stem the rapid adoption of devices that run Android.




According to ComScore, as of August 2010, AT&T has 38% of the smartphone share while Verizon holds 26.8%. A total of 68.7% of AT&T smartphones users are iPhone. As you can see clearly, a majority of AT&T smartphone market is of iPhone. Launching iPhone on its network will give Verizon a big boost in its smartphone market and also increase the overall market share. It will be a WIN-WIN for both Verizon and Apple.

Verizon launching iPhone has been in the news for quite sometime now. There’s no Smoke without fire. Iam more than positive that this is credible news and would be surprised if Verizon doesn’t launch iPhone next year.

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