Apple and Verizon in Talks to Launch iPhone 'Lite' and Media Pad 

 

The rumored talks between Apple Inc and Verizon Wireless on a possible iPhone partnership are surely giving AT&T, currently the only telecommunications company in the United States that sells the popular smartphone, much to think about. 

 

According to a report by BusinessWeek, Apple an Verizon are actually in talks about two devices: an iPhone for Verizon and a media tablet. The second device may be ready to hit the market as this summer. Both devices are currently in the prototype stage, the report says. 

 

The iPhone for Verizon will be a 'lite' version of the current iPhone, the reports says. It will be smaller, thinner and will pack fewer features that the iPhone we are used to. 

 

The other device is a media pad that enables users to listen to music, view photos, watch HD videos and several other things. The media pad can also be used to place calls over its Wi-Fi connection. 

 

The talks between the two companies have been going on for the past six months and also involved Apple CEO Steve Jobs, BusinessWeek reported citing two sources familiar with the talks, but who wanted to keep their anonymity. 

 

AT&T was until now and still is the only carrier of Apple's iPhone in the United States and has had many benefits from this agreement. The telecommunications giant added more than 7 million subscribers due to this partnership alone. 

 

Under a deal signed in 2006, AT&T has exclusive distribution rights for the Apple iPhone in the United States. AT&T is surely trying to convince Apple to sign an extension of that exclusivity contract for at least one year. AT&T better make a very good job of convincing Apple to sing an extension. The telecommunications giant posted better-than-expected financial results and those were in a great part due to the partnership with Apple and its wonder-smartphone, the iPhone. The Apple iPhone 3G was a strong vector of growth for AT&T. The telecommunications company activated more than 1.6 million of Apple’s highly-popular smartphone. 

 

AT&T has been preparing the ground for an extension of the exclusivity with Apple, but who knows what the outcome of this round of negotiations would be? Apple surely would benefit more if it would close another deal with Verizon or other carriers in order to have a deeper penetration of the market. 

 

The talks with Verizon may just just a second step for Apple – the first one being made with AT&T – and who knows how many steps the company plans to make?