After years of speculation, Apple and Verizon announced yesterday that starting 3 February, the iPhone 4 (modified for CDMA technology) would be available for Verizon customers. Differences between the iPhone on the AT&T network and iPhone on the Verizon network have been discussed in the press (http://www.nytimes.com/2011/01/12/technology/12phone.html.)
- Because Apple had to re-engineer the iPhone 4 for 3G CDMA, they also fixed the external antenna problem, causing so many dropped calls for early iPhone 4 users on AT&T.
- Because of CDMA technology limitations, iPhone 4 users on Verizon will not have simultaneous voice and data capability (e.g., talking while looking up directions on the Maps app.) Apple’s COO, Timothy Cook said he did not think most users would mind.
- Also because of CDMA technology limitations, international coverage will be less than iPhone on AT&T (which is based on GSM.) However, Verizon users should have greater 3G coverage within North America.
- Finally, for an undisclosed additional cost, the Verizon iPhone 4 will be able to act as a WiFi hub for up to 5 laptops or other devices (MiFi capability.)
Most interesting to me, given Verizon has recently launched true 4G LTE capability, is that the iPhone 4 will not take advantage of this capability, nor has Verizon or Apple disclosed a date by which an LTE device will be available. This means that some Android-based technology is likely to have both a processing power and bandwidth advantage over the iPhone for the foreseeable future. This may result in a market segmentation for smart phones similar to the PC market segmentation... Apple focusing on user experience and image while ceding competition on price / performance to others.
The other point of discussion in the press is the issue of Verizon being able to handle the traffic that will be generated by these new iPhones. Since Verizon’s network is larger, both in terms of customers and base stations and because Verizon has put in place serious fiber-optic backhaul (to prepare for LTE), my speculation is that they will have fewer problems and complaints than AT&T has had.
Given that Verizon and AT&T are the top two carriers in the North American market, I don’t expect any competition on price... there will be minor differences in terms and conditions, but nothing compelling. The competition is expected to be an image war, largely based on network quality perception, with Apple standing profitably on the sidelines.
What are your thoughts on the Verizon iPhone announcement? Do you expect to own one?
Really, VZW is just late to the game and playing catchup; it would have been better to wait till summer and announce a 4G LTE. Remember that AT&T commercial that you can't talk and surf at same time on VZW network. so I get no incentives to switch. AT&T probably beat VZE at the LTE iPhone and guess what the circle continues.
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