iPhone For Verizon Release Coming Next Year

Verizon (VZ) and Apple (AAPL) are in talks to possibly develop an iPhone for Verizon, a deal which could potentially go through as soon as the end of the year (USA Today). It would be the first time Apple has produced a version of the iPhone for a CDMA wireless network, which is different from AT&T’s GSM technology. Vodafone, co-owner of Verizon Wireless, already sells the iPhone in Europe. Verizon is said to have entered ”high-level” discussions with Apple management a few months ago, when CEO Steve Jobs was still overseeing day-to-day business, these sources say. The sources according to USA Today declined to be named because they aren’t authorized to speak publicly.
Currently, AT&T (T) has exclusive U.S. distribution rights to the iPhone into 2010. A deal with Verizon could be a devastating blow to AT&T, who is the no.2 biggest carrier in the US. Verizon’s network contains 80 million+ subscribers combined with superior connectivity. People who have been disappointed in AT&T’s network but love the iPhone would probably jump to Verizon. I still used the 1st gen iPhone and have no complaints of reliability with AT&T, however I can’t hold on my fingers the amount of friends upset with their 3G experience thus far. A more reliable network for the iPhone would see many switch over.