Apple eyes Verizon to carry iPhone
TEXT OF INTERVIEW
Bill Radke: Apple’s mega-hit the iPhone could be expanding its footprint. Right now to use an iPhone, you have to be a customer of AT&T wireless. But this morning’s Wall Street Journal reports
Apple is working on a new iPhone for Verizon. As in the country’s number-one wireless carrier and AT&T’s main rival. Marketplace’s Mitchell Hartman joins us live from Oregon Public Broadcasting. Hi, Mitchell.
Mitchell Hartman: Good morning, Bill.
Radke: So why could this shake up the cellular industry?
Hartman: Well, keep in mind, since the iPhone debuted in 2007, it’s been exclusive to AT&T. On Verizon, if you want a smartphone with Internet and fancy games and apps and all that, you have to use something like an Android or a Blackberry. So for existing Verizon customers, there’s the Apple cachet and all those apps. And for AT&T iPhone users who switch to Verizon, they may get better service. We’re talking the actual phone calls here.
Radke: And why is that?
Hartman: Well, to explain, we’ve got to get into some acronyms. AT&T and most other wireless carriers run on a network called GSM. Verizon uses a different one, it’s called CDMA. Verizon’s network is generally considered more reliable than AT&T’s, which is prone to dropped calls and slow downloads on that iPhone.
Radke: So what are the business reasons for Apple and Verizon to get together?
Hartman: Well, you just have to look at the numbers. iPhone sales have continued to explode, but eventually Apple’s going to run out of new customers if they stick with AT&T and its type of network. And for Verizon, it’s got fewer smart phone users than AT&T. Verizon wants more of these customers — they’re the ones who buy expensive data plans. The Journal says a new Verizon iPhone could come out by summer or fall, but none of the companies is commenting on that.
Radke: Marketplace’s Mitchell Hartman. Mitchell, thank you.
Hartman: You’re welcome.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
