
Apple iPhone Arrival at Verizon Delayed
NEW YORK, (
) --
Apple's
(AAPL) - Get Report
iPhone may be staying exclusively at
AT&T
(T) - Get Report
for longer than expected.
The anticipated arrival of the hottest phone at the largest wireless shop --
Verizon
(VZ) - Get Report
-- is looking more like a 2011 event.
The exclusive iPhone sales agreement between AT&T and Apple was set to expire in June, but according to multiple industry sources and Wall Street analysts, the iPhone may be staying put for awhile.
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Verizon, which rejected the first iPhone over control issues, has said it is open to a iPhone deal with Apple. And industry observers see a strong logic to Apple's eventual inclusion of Verizon and its 80 million subscribers to its iPhone market.
But Apple is at a crossroads of sorts, and staying on the AT&T path isn't causing any particular trouble. If anything, AT&T's ability to win an exclusive with Apple's iPad seals a bond between the two partners that had been challenged amid the outcry over AT&T's poor network quality.
The move to Verizon would require a separate phone that would work on the CDMA wireless network.
Qualcomm
(QCOM) - Get Report
, the major CDMA chip supplier, has developed a chip that would give the iPhone compatibility with Verizon's network, say analysts familiar with the company.
Apple's move to Verizon hinges more on strategic considerations than anything else.
A new version of iPhone at AT&T this summer is the simplest route for Apple. Adding a few new features would keep the costs down and allow Apple to coast to another year of success.
Apple could make two iPhones -- one for AT&T and another for Verizon. This would get Apple into more hands. But the 3G Verizon iPhone could be seen as little more than a placeholder, as tech enthusiasts hold out for a new generation of 4G phones to follow.
By far the boldest move would be for Apple and Verizon to introduce a 4G iPhone. The problem is that Verizon will have 4G coverage available only in a few select cities this year, with a fuller, national 4G network not ready 2011 or later.
Meanwhile, Verizon has tried to strengthen its ties to
(GOOG) - Get Report
to counter the AT&T/Apple team. The Google Android-powered
Motorola
(MOT)
was hoped to be a strong iPhone alternative for Verizon. And the upcoming
Google Nexus One
phone coming to Verizon will add yet another contender to the lineup.
The upshot: If Apple takes the iPhone to Verizon, it's not likely happen this year.
--Written by Scott Moritz in New York.









