This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Verizon iPhone? Maybe Never

NEW YORK ( TheStreet) -- What seemed like a done deal earlier this year -- the Verizon iPhone -- now has the appearance of a deal undone.

Verizon (VZ - Get Report) may have taken another pass on the Apple (AAPL - Get Report) iPhone for the same reason it rejected the offer three years ago. Verizon is apparently still unwilling to relinquish control of its customers to Apple.

Apple's iconic iPhone has changed the smartphone industry, but Verizon hasn't changed its mind about Apple, according to Morgan Stanley analyst Ehud Gelblum.


"Interestingly enough, not because Apple isn't giving it to them but, for the most part, because Verizon doesn't want it," Gelblum said in a recent report citing conversations with phone companies and industry gearmakers.

Apple declined to comment. Verizon wasn't immediately available.

The problem for carriers like Verizon and AT&T (T - Get Report) is that while the iPhone brings scores of high-spending new subscribers, those subscribers become Apple customers, using iTunes and the App Store to make all their purchases.

"The carrier is kind of shut out of the picture and relegated to being a dumb pipe," Gelblum says.

Verizon got a glimpse of this Apple-controlled future a few years ago and fled.

In 2006, when first approached by Apple to carry the iPhone, Verizon took one look at Apple's closed marketplace and said no thanks, according to people at Verizon. The iPhone then landed at AT&T.

To counter the impact of the iPhone at AT&T, Verizon teamed with Google (GOOG) and Motorola (MOT) on the Droid phone and tightened ties with Research In Motion (RIMM).

Stockpickr Answers
Who's buying RIMM ahead of its earnings?

Last year, and then again earlier this year, it became widely accepted that once AT&T's exclusive deal with Apple expired, the iPhone would go to Verizon. The move made sense as Apple could cash in on whatever pent-up demand there was among the 80 million-plus users at Verizon.

But that move seemed to derail when Apple's iPad was unveiled. The iPad was also expected to have a Verizon connection, but AT&T prevailed with a pay-as-you-go data plan.

A new version of the iPhone is expected to hit the market this summer, but don't hold your breath for a Verizon-branded iPhone.

--Written by Scott Moritz in New York.


Follow our tech coverage on Twitter and become a fan of on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.15 -0.23%
GOOG $543.26 -0.86%
T $32.88 0.69%
VZ $49.15 1.10%
FB $81.46 -0.92%


DOW 17,692.74 -83.38 -0.47%
S&P 500 2,058.27 -9.62 -0.47%
NASDAQ 4,863.1790 -37.7060 -0.77%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs