We have been hearing for quite some time now that Verizon would be getting a CDMA iPhone. Unfortunately, none of the previous rumors have turned out to be true, and Verizon customers are still waiting to get their hands on the iPhone.
According to Tech Crunch, Apple [AAPL] and Verizon could be launching a CDMA iPhone 4 in January 2011, as there are reports that Apple has ordered a large number of CDMA chipsets from Qualcomm.
Apple may be considering an iPhone on Verizon as they would be able to sell maybe two or three million units right away, just like they did when they launched the iPhone 4 and had massive pre-order sales.
Potential Market Impact
The introduction of a CDMA iPhone on Verizon’s network could significantly impact the smartphone market in the United States. Verizon is one of the largest wireless carriers in the country, and its extensive network coverage could attract a substantial number of new iPhone users. This move could potentially disrupt the market dynamics, as AT&T has been the exclusive carrier for the iPhone in the U.S. since its launch in 2007.
Moreover, Verizon’s robust network infrastructure could offer a more reliable and faster service for iPhone users, addressing some of the complaints that AT&T customers have had regarding network performance. This could lead to a shift in customer loyalty and a reevaluation of carrier choices among existing and potential iPhone users.
Technical Considerations
The transition to a CDMA iPhone involves several technical considerations. CDMA (Code Division Multiple Access) technology is different from GSM (Global System for Mobile Communications), which is used by AT&T. This means that Apple would need to design and manufacture a different version of the iPhone to be compatible with Verizon’s network. The reported order of CDMA chipsets from Qualcomm indicates that Apple is taking the necessary steps to ensure that the iPhone can operate seamlessly on Verizon’s network.
Additionally, the introduction of a CDMA iPhone could pave the way for Apple to expand its market reach to other CDMA carriers globally. Countries like Japan and South Korea have significant CDMA networks, and a CDMA iPhone could open up new opportunities for Apple in these markets.
Also, Apple and AT&T’s exclusivity agreement is due to end in 2011, so this could be a good move for Apple, and it would also be welcomed by iPhone users who would now have another choice of a network.
Of course, this is yet to be unconfirmed, and just another rumor in the long line of Verizon CDMA iPhone rumors. It definitely would be a good move for Apple.
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