Verizon Seeking to Shut Out T-Mobile and Sprint From iPhone in U.S.?

[MacRumors]

AppleInsider reports on a new research note from Kaufman Bros. analyst Shaw Wu claiming that Verizon has stepped up in its negotiations with Apple for the iPhone, reportedly paying a premium to ensure that the handset remains exclusive to current carrier AT&T and Verizon, which has been widely rumored to be launching the iPhone in the U.S. early next year. According to the report, Verizon is seeking to prevent iPhone distribution from also being extended to T-Mobile and Sprint, the country's other two major carriers.

"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 wrote. "For these reasons, (Verizon) could be more willing to give in to Apple's terms."

The report also claims that Google's Android operating system has begun to "lose some of its luster" at Verizon, as AT&T has continued to make gains in customer share with the iPhone despite Verizon's strong promotion of Android devices.

If true, the development would likely be a strong sign for Apple's bottom line, which some had expected might take a hit in the form of lower carrier subsidies when AT&T loses its exclusivity in the U.S. With Verizon seeking a form of exclusivity of its own to keep out T-Mobile and Sprint, Apple could see the benefit of a significant new base of potential customers while keeping the average selling price for the iPhone units at or near its current price of over $600.

It should be noted that Wu has a rather poor track record when it comes to Apple predictions, but his report today is already making waves among Apple watchers and those waiting for the iPhone to move beyond AT&T in the United States, and if true would represent a significant development for Apple and its customers in 2011.

Article Link: Verizon Seeking to Shut Out T-Mobile and Sprint From iPhone in U.S.?

 

[MacLawyer]

"Kaufman Bros. analyst Shaw Wu claiming that Verizon has stepped up in its negotiations with Apple for the iPhone, reportedly paying a premium to ensure that the handset remains exclusive to current carrier AT&T and Verizon, which has been widely rumored to be launching the iPhone in the U.S. early next year."

Heck with that. If Apple wants the iPhone to spread, it should be on as many carriers as possible. Just my two cents.

 

[yourwiseguy]

How upsetting. Looks like Tmobile will be getting the boot from me very soon. A pity, because they have always treated me well.

 

[Andronicus]

I also he an extremely poor track record at Mac/iOS rumors, but I'll make something up for a front page post!

 

[kasei]

Seeing is believing...

 

[asdf542]

Hoping for a January 2011 release.

 

[ImNoSuperMan]

I'm not in US so it doesnt affect me directly, but please apple, no more carrier exclusivity if for nothing else then to make sure we dont have to deal with "sprint iPhone next year?" rumors for another eternity. And given the android's sales compared to iphone 4, any more exclusive deal might only hurt apple in the long run.

 

[crackbookpro]

The best phone is coming out on the best network...

iPhone 4G with Verizon's LTE(4G) network!!!

I'm saying June of '11...

 

[TMay]

"Kaufman Bros. analyst Shaw Wu claiming that Verizon has stepped up in its negotiations with Apple for the iPhone, reportedly paying a premium to ensure that the handset remains exclusive to current carrier AT&T and Verizon, which has been widely rumored to be launching the iPhone in the U.S. early next year."

Heck with that. If Apple wants the iPhone to spread, it should be on as many carriers as possible. Just my two cents.

That would be a good thing in the future, but pent up demand on Verizon and worldwide means yet again more capacity problems that Apple has to work out before expanding. I would bet that Verizon gets an 18 month exclusive, enough time for current users to move to iPhone without painful penalties.

Interesting if true that Android is already seeing decelerating growth, and while I believe that Android market share will exceed Apple's, I also would believe that Apple will continue to take the lion's share of profits among smartphone sales in the U.S.

 

[mike5411]

This is wrong. Just let the iPhone on every network. The exclusives allow the companies to not provide the best possible service due to lack of competition. Just because they have more money should not mean the users of other providers should suffer. Give everyone the choice of their preferred network and the users will go to what fits their needs best.

 

[guzhogi]

Seeing is believing...

Agreed.

If this happens, this is both a good & bad thing. Good in that the iPhone will finally get another provider in the US. Bad in that we could have had more cell providers.

Adding any more providers will definitely clear up some of AT&T's congestion since I'm sure some people will switch to Verizon. However, I'm sure Verizon's network will start getting congested with all the switchers plus all the people who want an iPhone but not AT&T. I could see Apple selling not just the amount of iPhones it's selling now, but millions more, as well.

 

[Stella]

Worldwide, the iPhone is already available on multiple carriers, its only the states ( and a handful of other countries ) that Apple chooses to maintain the 1 carrier monopoly.

Android is in fact accelerating faster pace than iPhone according to latest statistics.

That would be a good thing in the future, but pent up demand on Verizon and worldwide means yet again more capacity problems that Apple has to work out before expanding.

Interesting if true that Android is already seeing decelerating growth, and while

 

[AAPLaday]

Isn't this guy as often wrong as he is right?

 

[Rodimus Prime]

How upsetting. Looks like Tmobile will be getting the boot from me very soon. A pity, because they have always treated me well.

And in doing so you break rule 1 and the most important rule of choosing a cell phone.

Choose your carrier first.

Breaking that rule means you loss all right to complain about crappy *blank* about the carrier you choose.

 

[smiddlehurst]

That would be a good thing in the future, but pent up demand on Verizon and worldwide means yet again more capacity problems that Apple has to work out before expanding. I would bet that Verizon gets an 18 month exclusive, enough time for current users to move to iPhone without painful penalties.

Interesting if true that Android is already seeing decelerating growth, and while I believe that Android market share will exceed Apple's, I also would believe that Apple will continue to take the lion's share of profits among smartphone sales in the U.S.

Actually that wouldn't surprise me in the least (although it's not necessarily decreasing growth, more a feeling within Verizon that there are issues on the horizon). The problem Android will face (and this has always been the case) isn't winning new users it's keeping them. Let's be honest the Android landscape has changed dramatically in the last 18 months and unfortunately a lot of users have been left behind in the process. How long has it taken to get updates out for some of those handsets, heck how many of them still aren't on 2.2? The biggest challenge facing Android right now is going to be getting users to recommit to the platform once their contracts are up and, at the moment, that's not necessarily a sure thing. At the moment it's the only real competition to the iPhone and is more or less a default choice simply because there's little else out there. But WP7 is starting to make its presence known, HP/Palm have webOS 2.0 and new devices on the way, Nokia are hard at work on MeeGo... Over the next year or two those platforms ARE going to move forward (some of them anyway) and will present a far more competitive market and it's not at all certain that Android will be able to maintain its position, especially if the fragmentation issues persist.

 

[decimortis]

because Apple always appreciates being told what to do...

 

[MCIowaRulz]

Why can't Apple make the iPhone sell it for $200 and let ME decide what carrier to use?
Doesn't anyone understand business 101?
The more you sell the bigger your profits are
Right?

 

[alakazzam]

Idk if this will fly. I guess it depends on how badly Verizon wants to lock in the contract.

My only reason for doubting this is why should verizon be afraid of Sprint and T-Mobile with the states? Do these companies really present that much of a threat to them that they'd be willing to make sacrifices?

 

[Stella]

Why can't Apple make the iPhone sell it for $200 and let ME decide what carrier to use?
Doesn't anyone understand business 101?
The more you sell the bigger your profits are
Right?

You can buy the iPhone 4 for full price and then choose what carrier you want.

$200 comes from the fact that the carrier subsidizes the phone and you repay the full price ( often, much more ) throughout the life time of your contract.

 

[Žalgiris]

Android is in fact accelerating faster pace than iPhone according to latest statistics.

Android is an OS and iPhone is a phone. Any single maker is far behind.

 

[pmz]

Isn't this guy as often wrong as he is right?

I don't recall the last time he was anywhere close to accurate.

 

[Arran]

... Verizon has stepped up in its negotiations with Apple for the iPhone, reportedly paying a premium to ensure that the handset remains exclusive ...

Verizon's not paying that premium, it's customers are.

Anyone know why that's good for the customers?

 

[Stella]

Android is an OS and iPhone is a phone. Any single maker is far behind.

Yes, you are right, however, TMay said "Interesting if true that Android is already seeing decelerating growth, and while".

He referred to the platform rather than one single Android manufacturer, therefore his comment was in the context of smartphone platform.

 

[MCIowaRulz]

You can buy the iPhone 4 for full price and then choose what carrier you want.

$200 comes from the fact that the carrier subsidizes the phone and you repay the full price ( often, much more ) throughout the life time of your contract.

In the U.S?

 

[Stella]

In the U.S?

Can you buy the iPhone outright in the US? Don't know.