James Delahunty
29 Apr 2009 22:37
According to BusinessWeek, Apple and Verizon Wireless are in talks to offer iPhone-like devices to the market. The report cites two people familiar with the matter, claiming that Apple has produced prototypes of two new devices and that discussions stretching back six months included Apple CEO Steve Jobs.
One of the sources who saw the devices described one as an "iPhone lite". The other is a media device would let users listen to music, view photos, and watch high-definition videos, and could place calls using Wi-Fi. The sources go on to say that one of the devices might reach the market as early as this summer.
AT&T has been Apple's sole carrier for the iPhone. The carrier has benefited immensely from the exclusive deal, adding seven million subscribers because of it. It has reportedly been in talks with Apple to extend the agreement, which is set to expire as early as next year.
Apple working more closely with Verizon Wireless, a combination of Verizon Communications and Vodafone, might pressure AT&T into accepting terms that are biased toward Apple's interests in a new deal. It is also worth noting that Verizon could have been the sole carrier for iPhone initially, but it objected to sharing monthly service fees and Apple's desire to choose which retailers could sell the phone.