Apple’s iPhone to go to T-Mobile and not Verizon in 2010

When AT&T’s (T) exclusive deal expires in 2010, Apple’s (AAPL)  iPhone is most likely to find a second home with T-Mobile and not Verizon (VRZN). That’s the conclusion of a note published by analyst Doug Reid of Thomas Weisel Partners and picked up and amplified by AppleInsider.

Here’s his logic.

AT&T’s current advertising, which downplays the iPhone, is evidence to Reid that Apple is going to sell the iPhone through other partners in the United States when its exclusive deal lapses with AT&T next year.

T-Mobile’s wireless network runs on the same GSM standard as AT&T’s network does. Apple would have to modify the frequency at which the iPhone operates to port it to T-Mobile but that, Apple Insider ,notes is a relatively simple hardware tweak.

Verizon’s network, on the other hand, runs on the CDMA standard and would require major re-engineering of the iPhone. One rumored solution would have Apple do a deal with chip-maker Qualcomm (QCOM)–a Jubak’s Pick–for a chip that would let the iPhone connect to both GSM and CDMA networks.

You can read the entire AppleInsider post on this here: http://www.appleinsider.com/articles/09/12/01/apples_iphone_predicted_to_find_home_at_t_mobile_u_s_in_2010.html

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4 comments

• mibnyr on 2 December 2009

  Hi Jim,
  How will this news affect VZ in your Dividend Income portfolio? Is the news sufficiently bad that you’d consider dropping it?

  I haven’t pulled the trigger yet and I’m wondering if this is seriously negative for VZ or perhaps just enough bad news to cause a good entry point.

  Thanks,
  Matt

  P.S. I can’t thank you enough for your guidance. I’m a complete novice and would not have the courage to dive into the market without your perfectly “dumbed-down” analysis.
• mibnyr on 2 December 2009

  One quick suggestion on the site: make the “POST COMMENT” and other command links made into buttons or highlighted somehow so lack-wits like myself don’t spend 2 minutes trying to post after we type.
  Should be an easy fix.
• gusspresso24 on 2 December 2009

  You gotta imagine Verizon is Apple’s long term goal if they can work it out. Twice as many users as T-Mobile and a significantly better network. Sounds like they’d have to give up some control over the phone in order to do that though, which… they’ve yet to do thus far.
• jubakstudent on 2 December 2009

  Hi mibnyr ,

  Good query on VZ .

  Hope we get a crisp analysis soon from

  Jim.

  Thanks