Summary
1. There appears to be discussions between Apple and Verizon regarding the iPhone. 2. However, at this time, it seems far from being a guaranteed project. 3. Yet, even speculation alone in the news is already a blow to AT&T.
Analysis
In order to potentially get out of its exclusive contract with AT&T, Apple would need to have very compelling reasons. Certainly, we have written about how far behind the wireless service provider is on network infrastructure for 3G.
It is probably a safe assumption that Verizon Wirelesss is not acting at all disinterested this time with Apple. The operator has not been able to come even close to offering a handset that rivals iPhone. Certainly, Apple would be carrying all of the cards now. And Verizon is unlikely to get as good of an offer for a second bite at the apple – no pun intended. But psychologically, such a deal could be irresistible to Verizon for three reasons – that the carrier knows it made a mistake in not going with iPhone in the past – that it would make customers potentially reconsider using AT&T in general – and that it is fixated on becoming by far the largest wireless provider in the US.
This is one time when -- AT&T’s mantra of owning 100% of its wireless network -- will not be an advantage. If taken to court, the carrier would have to fight three major opponents instead of two. Of course, it would not be in AT&T’s interest to further alienate Apple anyway.
