Apple and the iPhone are too-large of a boon to chew for only one dog. The dog that has been chewing it and making a lot of money out of it is AT&T (not that Apple hasn't made mad money). However, now another dog wants a part of that bone, Verizon.
Apple and Verizon are currently in talks for a partnership that involves the highly-popular smartphone, sources close to the situation said to the media. It the partnership materializes it would by the first time Apple would make an iPhone for a CDMA wireless network, different from AT&T's GSM technology.
According to a report by USA Today, the to companies are into “high level” discussions which started when Apple's almost legendary chief executive officer Steve Jobs was back at the company overseeing some day-to-day business, according to the sources cited in the report. Although Mr. Jobs is currently on medical leave until June, the “high level” talks are continuing, the sources cited in the report said.
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. According to several other media sources which based their reports on sources familiar with the discussions between Apple and AT&T, the two companies have also been in talks for the aforementioned extension that would give the telecommunications giant exclusive distribution rights for the iPhone 3G in the United States.
The iPhone 3G has been more than a success within customers. Since it launched the revolutionary smartphone in 2007, Apple sold approximately 17 million units all around the world. AT&T had exclusivity to sell the iPhone in the United States and benefited from that partnership a lot. However, the deal of exclusivity expires next year and AT&T now plant to convince Apple to extend the partnership until 2011.
according the a report by The Wall Street Journal, AT&T’s Chief Executive Randall Stephenson and Apple executives are about to agree on an extension of the partnership until 2011.
However, many analysts and market watchers said that Apple may also consider another option: selling the iPhone through other carriers as well. This move would result in a deeper penetration of the market by the smartphone that already is surrounded by a cult. The talks between Apple and Verizon are more a natural and logical step and will most likely materialize in a partnership.
