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Rumor: Verizon and Apple are at odds over pricing on CDMA iPhone

Analyst Maynard J. Um told investors today that while the rumored Verizon/Apple deal to bring a CDMA iPhone to the big V is still on the table, it's hit a snag over a pricing disagreement. Apparently Apple is used to being paid about $700 for every iPhone sold through AT&T, while Verizon pays out just $450 for Motorola's Droid, and the two companies are at odds over how much money should change hands for iPhones sold over the network. Seems like there should be a compromise somewhere in there, but of course any delays in making an agreement mean delays in actually releasing the phone.

And just for the heck of it, Um mentioned that he does expect a tablet this year, and that Apple's stock will depend on the "functionality and appeal" of the rumored new device. This just in: If people like something and think it works well, they will buy it. Thanks, analyst!

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Analyst Maynard J. Um told investors today that while the rumored Verizon/Apple deal to bring a CDMA iPhone to the big V is still on the...
 

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Amazing from the company that passed on the iPhone the first time around. Fool me once...

January 06 2010 at 8:52 PM Report abuse rate up rate down Reply
Bernie

Here is an idea VZW, how about you pay Apple what it wants and then not subsidize the phone as much. I would happily pay $300 for the base iPhone or $400 for the next one up. You will make your money back within the 14th month of the two year agreement you will force on us. $30 x14= $420.00.

January 06 2010 at 2:18 PM Report abuse rate up rate down Reply
K Dub

Seriously? I've had Verizon, Sprint, T-Mo & AT&T, and Verizon sharts on them all. The Droid is the bomb diggity, and this is coming from an iPhone 1st gen,3g & 3gs owner. The new Android OS's are ridiculous. The only problem I see with them is that all the games suck. But everything else is butter, especially if you flash it with custom roms. AT&T sucks as a company, and any time you have a problem with an iPhone some asshole in a turtleneck gives you this spiel about how its not their fault. I'll take my Android devices with Verizon ANY day over the pain in the ass that is the AT&T/Apple partnership.

January 06 2010 at 9:30 AM Report abuse rate up rate down Reply
Derick Brown

Eff that. I got a Droid yesterday and I'm happy.

January 06 2010 at 4:06 AM Report abuse rate up rate down Reply
james

why not go to sprint?

January 06 2010 at 3:35 AM Report abuse rate up rate down Reply
Isolder

You write a post using information from an analyst and in the same post take a jab at him. That's nice.

January 05 2010 at 11:45 PM Report abuse rate up rate down Reply
Odineye

So - just to be clear here, this is an *analyst* who is employed neither by Apple not by Verizon who is commenting on a rumor? So perhaps before we all get so incensed about the numbers, the networks, etc, we should keep in mind that the likelihood that he actually has any hard data is just about nil.

January 05 2010 at 10:23 PM Report abuse rate up rate down Reply
clint Johnson

Verizon does think they're the greatest thing since sliced bread, which they aren't, even though they do have the furthest reaching network. And yes, if that 700 figure is accurate, it's absurd. the iPhone should be selling for no more than 500 retail. Get real, Apple. Imagine all the money they'd rake in from all those Verizon iPhones buying apps. Demanding 700 per phone is counterproductive.

@JT: Try venturing outside your neck of the woods and see how well AT&T does. Even with AT&T, you can't hang onto a call anyway so what good is the multitasking? I just want the iPhone where I live, where AT&T won't be operating until this fall at the earliest. But don't get me wrong, if AT&T opens up shop here before Verizon gets the iPhone, I'll go back to AT&T in a heartbeat.

January 05 2010 at 7:26 PM Report abuse rate up rate down Reply
Trent

I have a white 3G 16g iPhone and it is NOT WORTH $700. So to expect Verizon to pay that out to Stevie...I don't think so.

Good for Verizon!!! I left Verizon after 6 years for AT&T because of the iPhone, but I am thinking of going back because of Google's Nexus that Verizon is getting in the spring.

January 05 2010 at 6:14 PM Report abuse rate up rate down Reply
6 replies to Trent's comment
Quix

Apple may want to take a play from the Microsoft FUD playbook and have an Apple employee, wandering the halls at CES make some offhanded remark (within earshot of tech reporters) that "prospective Nexus One buyers *may* want to wait until June..."

Bwua ha ha ha ha!

January 05 2010 at 6:04 PM Report abuse rate up rate down Reply
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