Will the Dreams of Verizon Customers Finally Become a Reality with the iPhone 4G?

March 30, 2010 - By Justin E. Gehrke

It seems the end may finally be near for the symbiotic relationship shared by Apple and AT&T, since 2007. According to a Wall Street Journal report, from March 29, 2010, internal sources confirm they are developing a different version of the iPhone. The general consensus, within the industry, has been that Apple would release a new version (called iPhone 4G around the internet) in June.

So what is so significant about potential plans by Apple to begin producing a new iPhone? It appears this one will operate on CDMA networks, not just the traditionally supported GSM networks, like the one operated by AT&T Wireless. Specifically, Verizon Wireless customers may be the primary benefactors of the new CDMA expansion.

Though fewer companies use CDMA technology, those that do, like Sprint Nextel and Verizon, hold a significant share of U.S. cellular market. This, coupled with the long-held anticipation of many users on these networks for their chance to use the iPhone, makes it a smartphone gold mine for Apple.

The CDMA iPhone model would be in addition to the existing GSM one already planned for summer 2010. While some alarmists may say that an end to iPhone exclusivity could spell certain doom for AT&T, who owes most of the credit for its 2009 growth to the Apple powerhouse, a more analytical approach suggests differently. AT&T may hold 43% of the entire smartphone market, but the 23% that Verizon holds is made up of dedicated and loyal customers. If they weren’t, many would have long ago defected to AT&T, simply to get an iPhone.

Another potential benefit to would-be iPhone owners on CDMA networks is the fact that a iPhone 4G CDMA model would be ripe for jailbreaking. If groups like the iPhone Dev Team were able to achieve such a feat, Apple would be the big winner. Why? Well, since Apple conveniently now allows the iPhone to be purchased without a contract or ID, even Sprint Nextel users with data plans could join in on the iPhone fun.

As usual, no one will confirm or deny anything. For their parts, AT&T, Apple, and Verizon have all declined to comment on the rumors. That means we’ll just have to wait and see if the dreams of CDMA users will come true in 2010. If not, there’s always the Android OS, which is found on the Google Nexus One smartphone and has risen from a 2% smartphone market share to nearly 24%, in a one year period. Do you hear that Apple? It sounds like those CDMA rumors might need to come true sooner, rather than later. Don’t worry. We’ll wait…for a while longer anyway.

Source: New iPhone Could End AT&T’s U.S. Monopoly