iPhone for Verizon report drives up Verizon stock prices
AT&T reassures customers it will still have iPhone in the U.S.
Computerworld - A report that Apple will begin production of an iPhone for Verizon and other CDMA networks pushed Verizon's stock higher today, while driving down the stock of AT&T, the exclusive U.S. seller of the smartphone for nearly three years.
An AT&T spokesman wouldn't comment on the stock dip, which was down by more than 2% at mid-day, but did strive to reassure customers it would be selling the iPhone for "quite some time."
Verizon's stock rose by more than 4% early in the day, although the stock was off those highs by mid-day.
Verizon and Apple would not comment on the report, which appeared in yesterday's Wall Street Journal (subscription required) and relied on unnamed sources.
Several analysts said the report may be correct, although a few noted that other reports had speculated that Verizon would get to sell the iPad from Apple, although that right is going to AT&T also.
Apple could benefit from a CDMA version of the iPhone because it could server not only Verizon but also Sprint in the U.S.; China Telecom and KDDI in Japan; and SK Telecom in South Korea, analysts noted.
Some reports have noted a big potential for the iPhone market share to shift away from AT&T in the U.S. if the phone makes its way to other carriers.
C.L. King analyst Lawrence Harris said as many as five million subscribers could move from AT&T to Verizon with a Verizon iPhone on the market.
But Kevin Burden, an analyst at ABI, said, "the idea of AT&T subscribers jumping to Verizon seems like a stretch." There has been dissent with the AT&T network, he said, but to make a shift might require Apple to come up with a CDMA version that has more features than the current GSM version.
"If the new phone is markedly better, it might entice current iPhone users to switch," Burden said.
Burden also said AT&T's stock dip today could stabilize in a few days.
Will Stofega, an analyst at IDC, said it would not be surprising that Apple is building a CDMA version of iPhone because "all the device makers have devices on a lot of neworks."
Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His e-mail address is email@example.com.
- Apple's CarPlay vs. MirrorLink: Is there a need for both?
- Apple's CarPlay to spark mobile apps war in your car
- iTunes is almost as big a biz as OEM Windows
- Icahn says 'I can't' and stops $50B fight over Apple stock buyback
- Lenovo-Moto deal's impact on Apple? Zip
- Office 365 turns one, but success is tough to tally
- Everyone bets on bigger iPhone for '14
- Apple's iPod business collapses as revenue becomes a rounding error
- Update: More than 1B smartphones were shipped in 2013
- Cook admits Apple blew the call on the iPhone 5C
Read more about Macintosh in Computerworld's Macintosh Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Pay-as-you-Grow Data Protection: IBM Tivoli's Full-featured Data Protection Suite for Small to Medium Businesses IBM Tivoli Storage Manager Suite for Unified Recovery gives small and medium businesses the opportunity to start out with only the individual solutions...
- Streamline Data Protection with IBM Tivoli Storage Manager Operations Center IBM Tivoli Storage Manager (TSM) has been an industry-standard data protection solution for two decades. But, where most competitors focus exclusively on Backup...
- Simplify and Consolidate Data Protection for Better Business Results Learn about IBM® Tivoli® Storage Manager Operations Center, which provides advanced visualization, built-in analytics and integrated workflow automation features that leapfrog traditional backup...
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Macintosh White Papers | Webcasts