Steve Jobs, Verizon, the iPhone and the iPad
Someone at Verizon (VZ) has been busy winding up the rumor mill this week, leaking stories to at least three news outlets about a pair of prototype wireless devices that Apple (AAPL) is reported to be shopping around.
In the past two days, news items in the New York Times, USA Today and BusinessWeek have all cited unnamed persons briefed on a new round of negotiations between Apple and Verizon — two companies whose failure to reach an agreement in 2005 famously resulted in the original iPhone going to AT&T (T).
BusinessWeek provides the most detailed account of the two prototypes:
- A smaller, less expensive "calling device" described by a BusinessWeek source who has seen it as an "iPhone lite";
- A "media pad" that would let users listen to music, view photos, watch high-definition videos and place calls over a Wi-Fi connection.
This "media pad" sounds a lot like the tablet Apple has been rumored to be working on for at least 18 months — and for which Apple is reported to have snapped up large quantities of 9- to 10-inch touch-sensitive screens. BusinessWeek reports that it is smaller than Amazon's (AMZN) Kindle e-book reader, but with a larger touchscreen.
According to the BusinessWeek source who has seen it:
"We are talking about a device where people will say, 'Damn, why didn't we do this?' Apple is probably going to define the damn category."
Silicon Alley Insider's Henry Blodget suggests that Apple call it the iPad.
The nature of the "calling device" is a matter of some dispute. USA Today suggested that it would run on Verizon's CDMA network — a possibility dismissed Monday by Piper Jaffray's Gene Munster as "unlikely" given the hurdles involved in building and supporting a cellular technology that seems to be on its last legs. As Apple COO Tim Cook put it last week: "CDMA doesn’t really have a life to it after a certain point in time."
The timing of all this is also fuzzy. BusinessWeek's sources tell it that one of the devices could come out this summer — but they don't say which one. We'd put our money on the iPad, given that any Verizon iPhone — lite or not — would probably have to wait until after 2010, when the carrier's next-generation LTE (Long Term Evolution) cellular network comes on line and Apple's contract with AT&T expires.
Complicating matters are multiple reports that AT&T is trying to get Apple to extend its deal as the iPhone's exclusive U.S. carrier beyond 2010.
The whole thing sounds like a typical high-wire Cupertino negotiating session, in which Apple seduces potential partners with impossibly sexy gadgetry, pits one against the other, and ends up extracting the most favorable terms for itself.
It's no accident that one of BusinessWeek's sources — Verizon Wireless CEO Lowell McAdam — says that before Steve Jobs went on medical leave, McAdam was talking directly with the master dealmaker himself.
UPDATE: The Wall Street Journal Tuesday reported that Verizon is in discussions with Microsoft (MSFT) to carry a touchscreen device code-named "Pink" that would compete with Apple's iPhone by early next year. In a note posted after the report, Morgan Keegan's Tavis McCourt pointed out that Verizon already sells 14 different touch screen phones, six of them running Windows Mobile. "There appears to be nothing new here from a product perspective," he writes. "If we assume Microsoft was the source of the leak, this speaks volumes as to how threatened it is by iPhone."
See also: Rumor: An iPhone for Verizon in 2009
microsoft making a touch screen phone is a waste of their time. Apple is too far gone with the AWESOME apps.
Here you go (first picture):
Next Apple moves will be Books and Games…
http://spidouz.wordpress.com/2008/09/03/next-apple-moves-will-be-books-and-games
Capable of full-blown presentations from NATIVE Keynote and PowerPoint files. We need thousands for our University.
I am skeptical about the iPad / media pad. In such a case they need to kill one of their existing products. Otherwise they are getting into the "lot of options" loop that Apple was facing before Jobs got back. Apple is very much about simplicity, even in their product line up. Either they'll introduce a device that has miltitouch and tablet form factor as one of the obvious ones in a long list of features or they they'll kill one of their existing product and replace it with the this new device.
Apple took on the cell phone market by storm,
it won't be any surpise to see them kicking netbook butt too!
I'll be waiting to bite that apple as well
I have had 3 I phones returned them all went back to verizon. AT&T does not get signals from different areas in my home, on the brigde, in my office. I love the IPhone concept but it is to inconveinient from a mobile phone stand point
>>>According to the BusinessWeek source who has seen it<<<
He claims his seen it, because if he has seen it means it exists. We don't know that it exists. So change to read,
According to the BusinessWeek source who claims to have seen it
I'm hoping that the 10" touch screens might be Apple's foray into the netbook (UMPC's 10" or less).
Imagine a Mac in your hand. With near full size keys (Sony Vaio P series or HP Mininote) so it's easy to type on. With a touch screen you wouldn't need a trackpad (or nipple mouse) so form factor will be great (though you'll need screen protectors).
It'll be huge among writers, students, maybe even bloggers and Facebookers. All it needs to do: play music, play video, surf the net, word processor.
Oh, and if Apple do make a netbook, here's hoping they stick more than just 2 USB slots on it.
Realize this: Should some PC company beat Apple to the punch with a multitouch tablet, it will be a cool product.
However, when Apple releases theirs, it will be revolutionary and create a new era of computing.
I'll hold my stock, thanks.
These are excellent news for Apple. Finally, those of us who have been waiting to get our hands on the iphone, will be able to do it. Apple is always innovating and coming up with the latest products in consumer electronics and software products; and when it does to the liking of the market, those changes are represented in their stock prices.
The stock market is full of emotion, so if these news bear any truth they will promptly be reflected in the stock market.
From what I have heard, many people will UW (underweight) their positions in AT&T stock as 2010 nears closer. This can only be good news for Verizon and Apple as they will get greater exposure to the US phone market.
I am sure waiting for this to come to fruition; it seems to me than an iphone beats a blackberry in every aspect. By the way, I have a blackberry with Verizon.
What do you think?
After reading the comments, i can only assume some of you are either computer/cellphone industry hacks or just your ordinary haters. I can never understand how someone can say "Product X only sells to people who don't think about how to spend their money,i don't use product X, but i think its terribly overrated and there much better ones on the market". I mean taking the time to comment on something you never use or plan on using while condisending to people that have used it makes no sense to me. Usually its people who have used a product that want to share their horror story to help steer us away from wasting our hard earned cash.
Anyway, i use Apple products and I have almost always been happy with them. I use PC's and the digital products of other companies also. They all have there short comings, everyone of them. that being said, I love my iPhone. Haven't you all seen it coming, THE LAPTOP HAS PEAKED. Seriously, handheld is where it is at, conectivity is where it is at, mobility is where it's at, simplicity is where it is at. I used a kindle the other day and i found things i would change before i even picked it up, but i still think its a great step in the right direction (much like the Nomad II). Apple is the ONLY company with a working OS that already allows mobile app purchases with millions of compatible machines all over the globe running the same programs…..in their pocket. I don't think Apple wants to be first at anything, they want to be the first to sell millions and big PHAT profit margins, that's it. The bet they are about to make on a padcomputing is a gamble. If the form factor is wrong someone else can catch that wave. There is no magic here. Make a good product sell it in volumes and keep up your margins up. Personaly, i never get all i want from apple, they just give me more than the other guys so far. I would buy a Kindle myself but who wants to go through the DRM debacle again. But i really like it. I would love something roughly the same size like and iphone spread out. It would need a low power setting for the screen to conserve battery with b&w or some grayscale. Less visual bells and whistles with just the basics in text.
To:Richard L. Tampa, FL
Ted T., New York, NY
Buh Bah, LV, NV
While I don't own any Apple products, my fiancee does have a couple of iPods. I only follow Apple because I trade the stock. In any one day, I will be long and/or short the stock, so I really don't care about their products just which way the stock is going. So, since I need to follow everything that is said about the company to trade successfully, I see all the comments and don't understand the enthusiasm that some people have for anything made by the company and the seeming hate for anything to do with Microsoft. Your emotional comments are a good example of what I am talking about.
Before Cingular was bought out be AT&T, coverage and customer service were a higher priority. But AT&T has issues with coverage on and along downtown interstates dropped calls, call failures everyday from 3pm to 7pm. Over the weekend, I was unable to send SMS, make calls, or surf the net during a neighborhood festival in downtown Atlanta. PLEASE Apple find a wireless partner that cares about their customers.
A “media pad” that would let users listen to music, view photos, watch high-definition videos and place calls over a Wi-Fi connection does not constitute innovation in my mind. I would like to see "real" product innovation. I am shocked that a company with 29 billion in cash cannot come out with a new product every quarter. Something wrong here in my mind.
AT&T is a god awful carrier, their service stinks. I use Verizon and could not be happier. Never had a DC problem. The Iphone is just a gadget, fancy bells and whistles WHOOPEEEE typical Apple Product. IMO Apple is way over rated and no where near as good as the other products out there.
AT&T's monopoly with iPhone is bad for consumers. Apple should diffrentiate itself from Microsoft and not become Microsoft of cell phone. I personally hate AT&T's bad practice of not allowing theathering. Apple should not accept such practice. Good product, ethical values and consumer choice is a long run winning stratergy of sustainable growth. But as you now GREED is King so we will wait and see the outcome.
I look forward to Steve Jobs announcing the iTablet or iPad's July roll-out on June 8th. And I'd be really surprised if the iPhone contracts stay limited to AT&T beyond 2010.
@ Mr. Odo
There are two very good reasons for why many of the U.S. carriers lock down their phones: profits and security. Yes, the control of the phone allows the carrier to sell device services that make the company money. Is that not what the company is in business to do? The security aspect can be seen in the many many java viruses that propogate across GPRS cellular networks disabling and hijacking phones. If you got one of these viruses, would you not be equally as upset as many are at Microsoft?
Lastly, if you had any idea about the technology evolution that's gone on in cellular communications, you would understand that 3G has been a MASSIVE failure worldwide, and moving beyond 3G to LTE (Which is not technically 4G as it fails to meet the specifications for highly mobile bandwidth: see 3GPP) may not be the pancea that many in the industry are hoping for, especially given the current and future trending market conditions both overall and specifically within the wireless industry.
at first I thought, "well the iPad doesnt look very sleek or sexy." then I noticed the print "artist rendition." One would hope it will look better than that while remaining versitle
I hope Apple keeps coming out with products that the carriers can't refuse. Make those carriers bleed as they fight each other for rights to Apple's products. I certainly want to see Apple products on both AT&T and Verizon which will enable more Apple products to be sold.
Clearly the carriers have no clue as how to run their own networks. Their pea-brains are too focused on simple cellphones with their cheesy nickel and dime services and they're impeding progress. They need a company with a larger vision to teach them. Just have them step back, let Apple run the show and they'll have plenty of money rolling in in the form of monthly data fees from all the Apple devices on the network. People will have a reason to pay for data in a way the carriers never dreamed of. 4G networks are just beckoning for new devices and Apple will provide those devices.
When I see comments about some potential product from Apple and see peoples eyes glaze over with anticipation, I think about that guy.
Posted By Randy B. Boca Raton, FL : April 28, 2009 10:27 am
And your multiple anti-AAPL comments are different? When you watch Steve Ballmer do one of his monkey dance, which drug is he high on?
@Randy B. "But what I don’t understand is the fascination so many people have with anything made by Apple."
It's because anytime Apple releases a new product the entire industry frantically attempts to copy it: iPhone has (thus far) led to the Instinct, BB Storm, Android G1, Palm Pre, etc, etc. not to mention everyone and their mother announcing an App store. None of this would have existed without the iPhone.
This isn't about Apple's next product — it is about the entire mobile industry's next product.
RE: Randy B. from Boca
Apple has a great niche and you seem to be just as interested as the rest. You might want to think before you criticize others for commenting on a quality products.
Hello I am a Mac blogger from Poland. I have recenlty set up an English version of my blog. Check it out please http://www.spidersapple.com/2009/04/thanks-billion.html
I realize Apple has a limited number of items it sells, and a new item for it to sell could be large percentage of its revenue and therefore important to Apple. But what I don't understand is the fascination so many people have with anything made by Apple. Reporters and individuals write about the rumors of a new product endlessly? They remind me of a guy I knew, he talked about nothing but "getting high", he wasn't interested in talking about anything else. The last time I saw him, he was in an alley waiting for a friend of his that was "getting some stuff" for them to "get high" totally oblivious to his surroundings. When I see comments about some potential product from Apple and see peoples eyes glaze over with anticipation, I think about that guy.
So, the Executive Summary is All Leaks seem to be from unnamed sources within Verizon, and some don't jive with what we've heard from Apple. Caveat Lector
All I have to say….AT&T service/coverage is quite possibly the worst I've experienced. That is not only my opinion, but that of everyone whom I speak with. If Apple does not open their eyes/ears they are making a huge mistake. Verizon is a far superior service provider and consumers should have the option/privilege to utileze the iphone. Its far past its time….wake up Apple!!!!!