Apple and Verizon Strike Deal for iPhone

The Verizon iPhone rumors aren’t dead quite yet: According to Shaw Wu, an analyst with Kaufman Bros., Verizon and Apple have finally agreed upon terms for the VZW iPhone, which is slated to be released early 2011.

…iPhone economics to Apple are likely to be favorable, similar to that offered by AT&T. This is important, as many, including ourselves, have been concerned that VZ iPhone economics could be less favorable given the strength of Android and higher cost of components, particularly those associated with CDMA.

Simply building the hardware (which most of the previous rumors are based on) is just half the battle, the carrier and manufacturer still have to agree to certain conditions before the phone can be sold. The iPhone was reportedly rejected by Verizon when it was first released, due to onerous terms on Apple’s part. It’s unknown who buckled this time around, but my money is on Verizon; Apple rarely budges for anyone.

Wu also claims that Big Red will be paying a premium to keep the iPhone exclusive to itself and AT&T.

Last but not least, we are hearing that VZ does not want iPhone, the hottest selling smart phone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T.


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