Will Verizon’s Announcement Have the “I” Word?
Verizon and Apple can say whatever they like tomorrow as long as it has the letter “I” in it and it involves the release of a new iPhone for the largest wireless carrier. Even if they do finally release their CDMA iPhone, what does Verizon need to do in order to have success with this new product?
Verizon’s iPhone will need to have a CDMA cellular radio in it so that users can make both voice calls and data calls. CDMA, which they use for the Verizon network, is a different system than the AT&T iPhone uses, which is GSM-based. It’s expected that the Verizon iPhone will work with their 3G services, which would include EVDO Rev. A, the same type of 3G that’s in the Motorola Droid X, HTC Incredible, and other smart phones in Verizon’s inventory.
It would, however, probably be a better choice, if the new Verizon iPhone did better than just turn out to be a CDMA version of the iPhone 4. They might get more AT&T customers to defect to their network if they instead made a “world edition” type handset.
Verizon already has several smart phones in their inventory that can do this, including the Blackberry Storm/Storm2, which can work with its 3G network in the U.S., and roam the 3G networks of European and Asian carriers.
A CDMA only iPhone couldn’t do this, and therefore, Verizon could lose the chance to get some of the business customers who frequently travel overseas.
Another smart move Verizon and Apple could make would be to make their new iPhone work with Long Term Evolution 4G, Verizon’s new LTE network. Verizon just announced that in the coming months they will offer 10 new units that will be capable of doing this, but if they put out a new iPhone now that was capable of doing this, it would give the company a major head start.
Potential customers are also concerned as to whether or not a new Verizon Wireless iPhone will be bogged down with unneeded applications or if it will have the Verizon branded services such as V CAST Music, Video, Rhapsody, and other similar applications preinstalled.
Other questions include speculation on whether or not the Verizon iPhone will be the same or a different size as current versions. Since it doesn’t require a SIM card, Apple engineers could take advantage of that empty space.
Another question is whether some of the issues that the iPhone 4 has will be corrected in a Verizon model? How about the antenna issues? Will it have a stronger front and rear section that won’t be so likely to break if it falls? Can customers use FaceTime on 3G? How much will a Verizon iPhone cost?
The list of questions goes on and on, but no one is getting any answers until tomorrow. Tick Tock, the clock is counting down.
Apple Moves Higher Into Verizon Announcement (NASDAQ:AAPL) (NYSE:VZ) (NYSE:T)
Apple Inc. (NASDAQ:AAPL) is floating higher today in anticipation of tomorrows announcement by Verizon Communications Inc. (NYSE:VZ). Verizon is expected to announce the availability of the iPHONE. Up until now, AT&T Inc. (NYSE:T) has had exclusive rights to the iPHONE. This has been long anticipated and seems to be coaxing buyers into Apple today. Apple is trading at $340.81, +4.69 (+1.39%). Apple has a history of running up into announcements only to see some sellers come in after on profit taking. This may be happening today. It will be very interesting to see if the iPHONE has any bells and whistles or if it is the standard phone. Many analysts are talking about this pushing Apples share price far higher as it fuels earnings. While this may be somewhat true, the hype is usually always more than reality. To gain more market analysis, guidance, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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