Apple and Verizon are in discussion regarding the possible development of an iPhone for Verizon to be introduced next year.
If this deal goes through then, this would be the first time Apple produces a version of the iPhone for a CDMA network which is very different from AT&T's GSM technology. Vodafone - the co-owner of Verizon Wireless is already selling the iPhone in Europe.
At the moment, AT&T has exclusive distribution rights of iPhone in the United States until 2010. This deal was made back in 2006 when the iPhone was still on the drawing board. Many telecom analysts expect that AT&T will try to persuade Apple to extend the contract at least for another year.
If Verizon succeeds in their effort to get the iPhone deal, that would be a big loss for AT&T. That could seriously affect AT&T's stock prices.
By joining hands with Verizon, Apple will gain access to its 80 million customers. Apple will most likely maintain ties with AT&T. This will be a very good news for the consumers because it would finally give them an option to pick a network of their choice.
Analysts' predict that Verizon will fare better in this battle. AT&T's 3G network is faster but Verizon's network is considered to be better in terms of reliability.
AT&T will be the biggest loser if this Verizon - Apple deal goes through because a lot of customers who are disappointed in AT&T's network but love the iPhone would definitely subscribe to Verizon.
In the end, Apple will benefit the most because it will be selling more iPhones.
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