Apple and Verizon in Talks Over New Devices

This morning, USA Today wrote a story reporting that Verizon was in talks with Apple about the “possible development of an iPhone for Verizon.”

That story attracted a lot of attention but I think the reporter, whom I respect, got the story wrong.

Here’s my take on what is going on between the two companies. Verizon and Apple are talking but not so much about the existing iPhone. Rather, talks are heating up about Verizon potentially distributing two new Apple devices under development. Here’s the top of the BusinessWeek story that we published around 7pm EST:

Apple, Verizon Wireless Discuss Devices
By Spencer E. Ante and Arik Hesseldahl

Verizon Wireless is warming to the idea of an Apple partnership. Verizon Wireless is in talks with Apple to distribute two new iPhone-like devices, BusinessWeek has learned. Apple has created prototypes of the devices, and discussions reaching back a half-year have involved Apple CEO Steve Jobs, according to two people familiar with the matter.

One device is a smaller, less expensive calling device described by a person who has seen it as an “iPhone lite.” The other is a media pad that would let users listen to music, view photos, and watch high-definition videos, the person says. It would place calls over a Wi-Fi connection. One of these devices may be introduced as early as this summer, one person says.

Click here to read the rest of the story.

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7 Responses to “Apple and Verizon in Talks Over New Devices”

  1. Mark Says:

    Spencer’s first sticking point is that Verizon may not want to revenue share with Apple, but that process between Apple and AT&T was eliminated roughly a year ago. AT&T now pays Apple a set amount per device (two different amounts depending on whether it’s an AT&T customer or acquired from another carrier), no revenue sharing, so that idea – unless Apple is trying to bring it back with Verizon – is moot.

    Strategy: Apple is trying to get both carriers to sign up this time around, and has slightly different product roadmaps for both (no fabled tablet). Apple is setting the stage for a major smart phone assault on the market come June, making anything Microsoft, RIM, Palm or Nokie brings to the market, virtually irrelevant.

    Shortening the information, here are the products Apple wants each carrier to provide:

    Verizon:
    – iPhone 8GB $99
    – iPhone 16GB $199

    iPhone specs: Samsung ARM processor. Upgraded 3.2MP camera (no video, just stills), better battery life, faster network speeds. A nice upgrade, full of potential customers on Verizon. The iPhone they wanted, they can now have.

    AT&T:
    – iPhone 8GB $199
    – iPhone 16GB $299
    – iPHone 32GB $399

    iPhone specs: Faster Samsung ARM processor, HD 1080i video ability, Infineon 7.2Mbps, 5 MP camera out-facing, 3.2 MP front-facing (video or stills), Video Editing application, iChat AV.

    The slighly premium iPhone is with AT&T, but both get strong iPhone offerings. Verizon can play the price game, AT&T can play off HD, and video.

    Oh, and one more thing… Apple sells iPhone touch. It’s the iPod touch, with 3G phone capabilities. Sign up with AT&T or don’t – customer’s choice – but it can be a VoIP 3G phone, with a 3G dataplan from AT&T. Same prices. $229 or $299. However, sign up with AT&T at time of purchase and get $100 the model of your choice… Ah the subside game.

    January CES: Apple will launch a brand new OLED iPhone, that will be nearly iPod touch thin, running a PA Semi processor, and include a new port – Display Port – on the top. Plug that into a 24″ LED Cinema display, and the OS is launched as the desktop OS X… Yes, this will be the first time a phone is capable of competently running a desktop OS. Get a phone call, it shows on the screen like a text (or iPhone prompt), click Accept, and the user talks, because the Apple LED has a built-in mic. Video chats can also be completed via the iSight camera in the monitor. This is a fully operational desktop computer in your pocket. This will be huge, and no one will have expected this in January.

  2. Minty Says:

    Apple is the best invoative company.

  3. Apple Tablet Says:

    Maybe Steve Jobs has to insert it for herÖ

  4. Apple Ipad Discount Says:

    Hello. This is kind of an “unconventional” question , but have other visitors asked you how get the menu bar to look like you’ve got it? I also have a blog and am really looking to alter around the theme, however am scared to death to mess with it for fear of the search engines punishing me. I am very new to all of this …so i am just not positive exactly how to try to to it all yet. I’ll just keep working on it one day at a time Thanks for any help you can offer here

  5. Alene Stramel Says:

    Alot of bloggers aren’t very pleased with the new iPad.There was too much hoopla regarding it and alot blogers got turned off.Quite frankly, I can actually see lots of the cool potential of this gadget. Third-party soft for playing music, games, papers and magazine and FFS books, all kinds of cool stuff, but they failed to sell it very well (excluding the books). It feels sort of not finished

  6. Daron Albin Says:

    Laptops will change the country when they are accessible to everyone financially. Think of every man and women, having a personal laptop.

  7. Cecily Pecinousky Says:

    The processor is tagged as somewhat recent model number however it and also the GPU are most likely the same speed since the 3GS. The old Touch with the same Processor and GPU since the 3G was faster. Besides getting the clock speed turned up greater the Contact has less software programs to run because itís not a phone. It ought to defeat any iPhone to day in overall performance.

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