Verizon willing to pay extra for a piece of iPhone?

Dec 7, 2010
Finance

AT&T (T) has had an iPhone monopoly since it introduced the device from Apple (AAPL) in 2007. Now rumor has it that Verizon Wireless (VZ) is pulling an AT&T with hopes for a duopoly. It wants to keep the most successful smartphone out of the hands of rival T-Mobile (DTEGY.PK) and Sprint (S). Kaufman Bros. […]

AT&T (T) has had an iPhone monopoly since it introduced the device from Apple (AAPL) in 2007.

Now rumor has it that Verizon Wireless (VZ) is pulling an AT&T with hopes for a duopoly. It wants to keep the most successful smartphone out of the hands of rival T-Mobile (DTEGY.PK) and Sprint (S).

Kaufman Bros. analyst Shaw Wu told investors Verizon is willing to bend over and pay extra to accept Apple’s terms to keep competitors out of the iPhone game.

“We are hearing that (Verizon) does not want iPhone, the hottest selling smartphone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T,” Wu told investors. “For these reasons, (Verizon) could be more willing to give in to Apple’s terms.”

Neil Hughes at Apple Insider reports that iPhone sales, 14 million in the last quarter, have placed Apple in the driver’s seat. He said Wu also asserted that Google’s (GOOG) Android operating system has begun to “lose some of its luster” at Verizon.

Rumors have been on the rise about an iPhone for Verizon with a CDMA chip compatible with the Verizon network. Ties have become closer between Apple and Verizon since the carrier in late October began selling the iPad cobbled with the MiFi mobile hot spot.

Chris Davies warns in SlashGear: “Rumors and speculation about a CDMA iPhone tend to cling to Apple like little else, and it’s hard to say how much of Wu’s information is beyond tenuous. Consumer Reports has just announced that Verizon’s top smartphones are the Motorola DROID X and Samsung Fascinate, both Android devices, which would seem to contradict the idea that the OS is falling short at the carrier.”

READ  The Ultimate Guide to Phone Security

Apple and Verizon remain mum.

Darrell Etherington notes in GigaOm: “Are AT&T and Verizon enough, or would you rather just see Apple open things up to everyone the way it’s done elsewhere in the world?”

Search for more

Howard Wolinsky

Howard Wolinsky is a Chicago freelance writer specializing in health and tech topics. He covered those beats for the Chicago Sun-Times.

    Home Apps Games