Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Apple iPhone to Verizon drumbeat picks up (again)

By | June 17, 2010, 7:09am PDT

A version of Apple’s iPhone that would be compatible with Verizon Wireless’ network will reportedly start shipping in the fourth quarter.

According to DigiTimes, contract equipment manufacturer Pegatron Technology is using its plants in Shanghai to manufacture CDMA iPhones. Verizon Wireless’ network is CDMA based. The DigiTimes report just mentions a CDMA iPhone so technically Sprint could also be an end destination, but most signs point to Verizon Wireless.

This report comes amid AT&T’s high-profile systems breakdown with Apple iPhone 4 preorders. The DigiTimes report may add up. The Wall Street Journal reported in March that a CDMA iPhone was in the works and headed to Verizon.

Verizon-iPhone stories are a dime a dozen. Reports about Apple and Verizon teaming up have been around for years, but so far haven’t panned out. Meanwhile, AT&T continues to hold iPhone exclusivity. And much to the chagrin of WWDC attendees, Apple CEO Steve Jobs didn’t announce any plans to bring the iPhone to Verizon.

So why should we give the DigiTimes report any play? Simply put, the tea leaves point to an iPhone coming to Verizon. To wit:

  • AT&T’s move to allow for early iPhone 4 upgrades is not only extremely generous—as Jobs would put it—it indicates that the telecom provider is trying to lock up as many customers as possible before exclusivity disappears.
  • Verizon officials have repeatedly said that their network could handle iPhone-ish data demand.:
  • An iPhone launch in the first quarter would match up well with Verizon’s LTE 4G network rollout. A CDMA iPhone could be dual-mode 3G/4G.
  • And Apple could double the addressable market for the iPhone. Let’s face it. If you haven’t moved to AT&T for the iPhone yet you aren’t going to.

It all adds up to a first quarter iPhone launch with an announcement timed around the Consumer Electronics Show (CES). Or if Verizon wants to screw up AT&T’s fourth quarter, it could make an announcement about the iPhone in November. I doubt Apple would torch AT&T with a fourth quarter announcement—that would freeze holiday sales—so expect an announcement to upstage CES.

In the meantime, Verizon Wireless will continue to be Droid happy and do quite well.

What does this mean if you’re a smartphone buyer right now? I think it means you sit and wait with your existing phone. My contract is up shortly at Verizon Wireless and I’m just going to hang and see how these smartphone wars shake out. I like the sounds of the latest Motorola Droid. I’m open to the iPhone on another network as well as the HTC Incredible. Hell, even the upcoming BlackBerry from Research in Motion could be a contender. And while I’m at it I may check out the latest Windows Phone 7 devices.

Add it up and there’s no reason to buy a smartphone right now. The innovation curve dictates that you’ll have buyer’s remorse in 5 minutes anyway. It’s hard to jump in when the latest and greatest devices come every other week.

Jason Perlow sums up this shopping conundrum well. Speaking about the rapid smartphone upgrade cycle, Perlow writes:

From a consumer perspective, this seems rather frustrating, as the constant “what’s coming next?” factor is always in play, and if you are someone who is at the end of a contract cycle or between contracts, it’s always a question of when the right time is to upgrade or to jump on a new platform.

Bottom line: While increased chatter about the iPhone coming to Verizon Wireless is notable it’s likely to freeze a smartphone upgrade just a bit longer.

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Topics

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

Talkback Most Recent of 39 Talkback(s)

  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    I help but think either Verizon leaks these "reports" to stop people from hopping over to AT&T.
    ZDNet Gravatar
    Yensi717
    17th Jun 2010
  • ZDNet Gravatar
    dimithrak@...
    17th Jun 2010
  • No Need
    Verizon already offers superior devices.

    Having used both, Droid Incredible makes the iPhone look silly.
    ZDNet Gravatar
    Tim Patterson
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @Tim Patterson Dude do you do ANYTHING other than troll on these boards? Seriously I've seen nothing from you that was not Anti-Apple...
    ZDNet Gravatar
    Pete "athynz" Athens
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @Tim Patterson And 600,000 people last Tuesady definitely agree with your comment. plain How many anti-Droid or anti AT&T comments have you made on other sites lately? Why do you even read these blogs? Unless you work for Verizon or own a butt-load of stock?
    ZDNet Gravatar
    JHenk
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @Tim Patterson

    you posted on the wrong page dude.. Troll.com is completely different domain!..
    ZDNet Gravatar
    dimithrak@...
    17th Jun 2010
  • More speculation
    You're right, Verizon-iPhone stories ARE a dime a dozen. If you are ATT, why would you NOT allow for early upgrades?
    ZDNet Gravatar
    mograph
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    The early upgrades are just a myth. I stood in line yesterday to pre-order only to be told that I could pre-order for $400 now or wait until my regular upgrade in Feb 2011. If Verizon picks up the iPhone, I will be there in a heartbeat as I've always felt they gave better service and customer service. I wanted an iPhone (current 3g version) and the only way to get it was to go to AT&T. I think the competition would be good for them and might give them reason to improve customer service.

    So Jobs claim of giving upgrades to current customers doesn't always pan out.
    ZDNet Gravatar
    eichlinc@...
    17th Jun 2010
  • The question there is--did you bother to verify your eligibility prior?
    @eichlinc@... I could be wrong, but I do believe that eligibility statement also tells you what the upgrade would cost, does it not?

    I'm eligible to upgrade; I know because I checked. I'm choosing to wait simply because my wife wants my 3G when we pick up the iPhone 4.
    ZDNet Gravatar
    vulpine@...
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @eichlinc@...

    Sorry - both my wife and I have had a 3GS less than a year and we both are eligible for the 199/299 upgrade on the i4 and the complete discount on any other phone.
    and @vulpine is right - if you check your eligibility online it will tell you. If you check via phone (call>text) it will not.
    ZDNet Gravatar
    rhonin
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @eichlinc@...
    The early upgrade is meant for contracts due anytime *this* year, not the next one.
    Jobs' claim was not that of "giving upgrades to current customers", but rather "giving upgrades to current customers whose contracts end in 2010", which apparently is not your case.
    ZDNet Gravatar
    abelitin
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @eichlinc@... Verizon customer service is HORRIBLE!!! I am using a cheap samsumg flip phone for work and it drops everytime i use the piece of cr@p. These anti-ATT and Apple posts are so old and getting stale. I have an iphone and use it for everything and have never dropped a call and have never had any issues with ATT. I had signal problems before i got the iphone and they took care of me by reducing my bill for several months until the probelm was fixed. When I had Verizon the lines at the store were a joke as well as the people working there. I sat there for 45 minutes before anyone helped me and then they wanted to get me in and otu as fast as possible....reminds me of CIGNA service! I will never use Verizon!
    ZDNet Gravatar
    az49erfn
    21st Jun 2010
  • Could be AT&T starting the rumors?
    A good way to get people to upgrade early, is to give the impression that it will move over to a competing network?

    I don't think anyone would be willing to wait 6 months or whatever on the rumor of it being available on Verizon, they want a smart phone now, but for those already invested in iPhones, the opportunity is there for you to take advantage of the upgrade offer: If it doesn't pan out, and Verizon doesn't get the iPhone, no harm to the upgraded AT&T iPhone buyer.
    ZDNet Gravatar
    John Zern
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    @John Zern

    if they did... then they blew it!
    ZDNet Gravatar
    dimithrak@...
    17th Jun 2010
  • RE: Apple iPhone to Verizon drumbeat picks up (again)
    I used Verizon from my first cell till I got my iPhone two years ago. For those who think Apple is controlling, they should use Verizon. Admittedly, I didn't have a 'smart phone' but the way Verizon controls their ring tones, games, et al makes Steve look like a libertarian. The stuff you can get on an iOS device is legion, and Apple only takes a 'taste'. Verizon wants it all. I don't think Apple's business model will fly at Verizon. Besides, why would Apple create a crippled product just to tap Verizon's customers when they (Apple) can't make iPhones fast enough to fill AT&Ts customers? Verizon is losing market share, largely due to the iPhone. Regardless of how fast they are replacing WinMo with Android, they just don't get Apple's business model, which has become a juggernaught. As for 4G being an attraction, I read in these very pages where due to extensive tuning, etc. AT&T's 3G is faster than TMobile's 4G. AT&T isn't perfect by any stretch, but I'll take my experience with them over my experience with the big V any day.
    ZDNet Gravatar
    dheady@...
    17th Jun 2010

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