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Verizon iPhone could cost extra, says JP Morgan analyst

updated 04:00 pm EST, Mon January 10, 2011

Notes CDMA tech more expensive than GSM

Verizon could charge around $20 to $30 more than AT&T for subsidized iPhones, claims JP Morgan's Mark Moskowitz. The analyst observes that in order to properly support Verizon, any new iPhone model must use the CDMA networking standard, the hardware for which is more expensive than the GSM/UMTS used by all current iPhones. He adds though that while buying an iPhone could be more expensive through Verizon, the issue might be offset by better network performance.

Partly because AT&T has been the exclusive US carrier of the iPhone so far, its network has been the subject of many complaints. Subscribers may experience dropped calls and slow or non-existent 3G data, particularly in large, wealthy, tech-heavy cities such as New York City and San Francisco. Verizon by contrast has been ranked by Consumer Reports as the best major carrier in the US, even with an influx of Android smartphones and the option of unlimited 3G data.

"If Verizon can avoid network performance issues during and after a potential iPhone roll-out, then we expect a multi-year growth spurt in U.S. iPhone sales," says Moskowitz, "as meaningful levels of AT&T iPhone subscribers could migrate to Verizon for improved performance."

Apple may be reluctant to allow differing pricetags for American iPhones, as it would break from the company's normal product policies. Verizon might instead be expected to pay Apple a greater subsidy than AT&T, which could potentially be offset by a larger subscriber base.

by MacNN Staff





  1. climacs

    Joined: Dec 1969



    you can't talk and websurf at the same time with CDMA, and while I hesitate to call any single feature (or lack of) a showstopper, that's going to annoy quite a few people when they are trying to give someone directions or reference an email in a phone conversation.

  1. Herod

    Joined: Dec 1969


    20 to 30 more bucks???

    this will cause an outrage!!!

  1. sribe

    Joined: Dec 1969


    not likely

    I bet they both want very much to keep the price the same, and they worked out some split on the additional expense, some being paid to apple from the subsidy, and some part being eaten by apple in the form of slightly lower margins.

  1. freddymac

    Joined: Dec 1969


    3GS for $49

    If they can eat $50 on this then they can do $30 for Verizon...............

  1. brainiac

    Joined: Dec 1969


    I, as an analyst

    I foresee that the price for the Verizon iPhone may be a little bit more, a little bit less, or under some very specific circumstances remain the same. I just wanted to let you know what I am guessing just in case you needed something to read because you have no life and cannot wait just one more day to learn the price of the product that I am approximating today.

  1. stevesnj

    Joined: Dec 1969




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