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Is the iPhone Finally Coming to Verizon?

Rumors continue to swirl about a possible iPhone deal between Apple and Verizon. But this time may be different.

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Deal or no deal: Will the iPhone finally come to Verizon?It's deja vu all over again. Rumors that Verizon Wireless will be getting the iPhone continue to surface. Many whispered appearance dates have passed with no actual Verizon iPhone arrival. We don't want to get your hopes up, but this time may be different. Much like explorers seeking an elusive species in a faraway land, we delve into the misty depths of the latest round of rumors.

The Rumor


A recent investigation by TechCrunch points to Apple getting involved with CDMA chipsets for the iPhone. Bloomberg cited sources that say the plan will come together for a January launch. "I am not privy to the contract negotiations, so I can't say with absolute certainty, but the industry buzz right now is that an iPhone is coming to Verizon early in 2011," says Jay Witherspoon, director of advertising with Cellular Sales, a Verizon Wireless retailer with 350 stores nationwide.

If the rumors come to fruition, it could be a win-win-win situation for Apple, Verizon and consumers. Apple is finally feeling the heat from Android smartphone sales. Verizon could stand to have an iPhone feather in its cap. Consumers have been asking for a competitive alternative to contracting with the AT&T network. "The demand for a Verizon iPhone cannot be ignored by the decision makers at Apple or Verizon, so whatever differences the two companies have will likely be worked through soon because of the enormous sales potential," Witherspoon says.

What's Different

It would be easy to toss this round of rumors into the slag heap of all the previous ones, but there is a slightly different timbre this time. "The recent Verizon/iPhone rumors are coming from the supply chain, whereas the previous rumors were the more typical high-level sources," says David Bernard, managing director of business consulting firm DB Marketing Technologies in New York. The biggest telltale sign is Apple ordering CDMA chipsets for the iPhone. Verizon is the largest CDMA carrier in the United States. "The logic is if a Verizon iPhone will be released in January 2011, there are requirements for component production, design and testing that must occur prior to full-scale production and would need to be occurring now," Bernard says.

Grains of Salt

Now that a lot of people are getting excited, it's time to hedge our bets. Bernard takes a careful approach to analyzing the rumors. "Note that none of the current rumors emphatically state there will be a Verizon iPhone. They simply address the possibility of a CDMA iPhone, which is the technology Verizon uses." This is an important distinction, because Verizon isn't the only CDMA carrier in the world. "There are CDMA carriers in China, so it could be an iPhone for a Chinese carrier rather than Verizon," Witherspoon says. Sprint is also a CDMA provider. It could even be destined for a combination of carriers.

Bernard has some concerns about the timing of a possible iPhone on Verizon. Verizon is starting to roll out its new 4G LTE service. "Does it make sense for Verizon and Apple to produce a CDMA iPhone in early 2011 when Verizon is starting to roll out its 4G LTE service? The current iPhone 4 is a 3G device and in an LTE world would be considered obsolete," Bernard says.

So depending on who you listen to, the iPhone is definitely coming to Verizon in January, it's heading to an entirely different carrier or it isn't going to happen at all. Apple and Verizon are typically mum on the whole topic. Whatever becomes of the rumors, the sheer volume and variety of speculation has been immensely entertaining.

Tags: Apple, iPhone, iPhone 4, iPhone rumors, iPhone Verizon, Mobile, News, Verizon

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