iPhone and Verizon will partner in January 2011
Apple’s iPhone users can opt for Verizon service in the future. In
related news however, the company has had complaints about iPhone 4′s
call-dropping antenna. Corporate policy advises AppleCare reps to tell
to make the phone work. It’s not clear how many will “buy the bumper”
and how many will look elsewhere for a phone.
It looks like the unholy union between AT&T and Apple will end.
Reports are out that Apple and Verizon will partner in January. Apple
customers have found fault with the exclusive arrangement that restricts
customers to single-carrier deals. Apple’s 5-year agreement with
AT&T expires soon. The new Verizon agreement will not be exclusive,
but will be a carrier option.
There has been no official announcement yet. Speculation in the industry
is that Verizon leaked the news to keep new iPhone customers from
signing up for another 2-year AT&T contract.
Bloomberg reports, “The iPhone, which has been the
sole domain of rival AT&T in the U.S. since June 2007, will give
Verizon a boost in its competition for smartphone customers, UBS AG
analyst John Hodulik said in an interview. Verizon customers, who
numbered 92.8 million at the end of the first quarter, may buy 3 million
iPhones a quarter, he estimates.”
“The fact is, Apple is going to dramatically increase the number of
devices it sells in the U.S. when exclusivity at AT&T ends,” said
Hodulik, who is based in New York and rates Verizon shares “neutral.”
“It’s hard to ignore the quality issues that AT&T has faced. Verizon
Wireless, which is building a high-speed fourth- generation network,
plans to unveil several devices that will run on the new technology in
January at the Consumer Electronics Show, Chief Executive Officer Lowell
McAdam has said.”
The Huffington Post says, “The device will be
available to customers in January, according to the people, who declined
to be named because the information isn’t public. Brenda Raney, a
spokeswoman for Verizon Wireless, didn’t immediately return a call
seeking comment. Natalie Kerris, an Apple spokeswoman, and Peter Thonis,
a Verizon Communications Inc. spokesman, declined to comment.”
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