BW, NYT confirm Apple-Verizon talks; "media pad" in the works?
Tue Apr 28, 2009 9:24AM EDT
Well, looks like something's definitely up between Apple and Verizon Wireless. First came Monday's piece
from USA Today claiming that Verizon could get an iPhone as early as next year, and now both BusinessWeek and the New York Times are reporting that Apple and Verzion are in talks—possibly about an "iPhone lite" and a touchscreen "media pad." What gives?
I admit, I was highly skeptical of
yesterday's report from USA Today claiming that Verizon and Apple are in "high-level" talks about bringing the iPhone to "America's most reliable network."
But later on Monday,
BusinessWeek published a post detailing the talks, which (it claims) involve "two new iPhone-like devices," including "a smaller, less expensive calling device"—an "iPhone lite," according to an anonymous source—and a "media pad" with the potential to "shake up the tech industry."
A few hours later, the
New York Times chimed in, confirming that Apple and Verizon execs were in "high-level" discussions to "sell a version of the iPhone" (they key word is "version," I'm guessing) that "would work on Verizon's network."
Even more interesting, the Times' (anonymous, again) source said it "is not out of the question" that the device would work on Verizon's "current" CDMA network, which acting Apple CEO Tim Cook
recently noted "doesn't really have a life to it after a certain point in time." (Verizon is slated to migrate to a new, faster network—known as LTE—starting next year, as is GSM-based AT&T, although it'll take years for the carriers to fully roll out the new networks.)
As for the mystery devices (only in prototype stages, apparently), BusinessWeek had the best (though still unconfirmed) details.
The "iPhone lite" would be a "less expensive device" that's "thinner and smaller" than the current iPhone BW reports. Under the hood would be a new, integrated "system on a chip" that would lower manufacturing costs.
More exciting would be the "media pad," a device that's smaller than the Kindle but armed with a larger touchscreen "that would let users listen to music, view photos, and watch high-definition videos" and would "place calls over a Wi-Fi connection," BW claims, adding that at least one of the devices could arrive "as early as this summer."
That's pretty much the "what" of the reported Verizon-Apple talks. Then there's the question of "why?"
Possible reasons (as culled from the BW and NYT stories): Apple is using the Verizon discussions merely as a plot to wring better terms out of AT&T, which is reportedly in talks to
extend its iPhone exclusivity deal with Apple to 2011.
Another possibility: Apple would give the new iPhone-type devices to Verizon in exchange for Verizon
not taking on the widely anticipated
Palm Pre, which (for now) will only be available on Sprint.
Both the Times and BusinessWeek caution that while talks between Apple and Verizon have "heated up" in the past few weeks, "no deal is imminent" and talks could easily break down. Verizon, of course, famously passed on the iPhone before AT&T made its deal with Apple.
Personally, I'm still trying to make sense of all the news. Apple's strategy all along has been to make "
one phone for the entire world," and most of the world (including AT&T and T-Mobile) uses GSM networks. Verizon (along with Sprint) is using CDMA, a wireless technology that's facing obsolescence as Verizon preps for LTE and Sprint toys with WiMax (a 4G technology based on Wi-Fi).
And while Verizon will have its first few LTE markets ready by 2010, I have a hard time believing that Apple would release a device either this year or next that would only work in a few select areas of the country. (Once LTE takes off, it'll be a different story, but that won't happen until at least 2011.)
And if the rumored "media pad" (which sounds a lot like the Apple tablet everyone's been buzzing about) makes calls through Wi-Fi, well … why wouldn't Apple just sell it directly, rather than going through a cellular carrier?
In any case, based on all the stories cropping up, it's clear that something's afoot—and while bringing the iPhone (or "iPhone-like" devices) to Verizon
now might be a strange strategic move for Apple, it would be great for U.S. consumers, who would finally have another option for getting the iPhone. Stay tuned.