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Verizon iPhone to Have Metal Back; New iPads and Apple TV Arrive in Early 2011

iPhone 4 mock-up

Digitimes is reporting that Apple will begin 2011 with the release of a CDMA iPhone as well as refreshes for the iPad and Apple TV. The site reports that a CDMA “Verizon” iPhone will go on sale in January and will have a metal back featuring an “integrated antenna,” presumably an external antenna similar in concept to the iPhone 4′s. Verizon will announce the launch of the iPhone on their network at CES 2011, where CEO Ivan Seidenberg will be making the keynote address on January 6, 2011. The CDMA iPhone will initially be sold through Verizon in the US and China Telecom in China. An analyst for Digitimes says the expected ratio of GSM to CDMA iPhones sold in 2011 to be 65% GSM to 35% CDMA. Pegatron Technology will ramp up mass production of the device in December 2010.

Digitimes claims the iPad will receive hardware updates and a second new smaller model in 2011. Apple will refresh the device in early 2011 with a faster ARM Cortex-A9-based processor and 512MB of RAM. Apple will introduce a smaller model with a 7-inch screen that will feature a high-res IPS LCD panel with a resolution of 1024×768, giving a more comfortable reading experience closer to the iPhone 4′s Retina Display.

The Apple TV will receive a big refresh as well, with Apple removing the hard drive from the device and adding AMD’s new Fusion processors. According to AMD, the chip offers the following:

CPU and GPU capabilities for HD, 3D and data-intensive workloads in a single-die processor called an APU. APUs combine high-performance serial and parallel processing cores with other special-purpose hardware accelerators, enabling breakthroughs in visual computing, security, performance-per-watt and device form factor. Software developers, utilizing AMD drivers, libraries and either the ATI Stream SDK2 or the Microsoft DirectCompute API, can enhance the user experience and speed application performance by developing applications that fully utilize the unique computer power of the AMD Fusion™ Family of APUs and AMD discrete GPUs.

Digitimes states the new Apple TV will have “a user interface similar to the iPhone,” presumably iOS, which powers the iPhone, iPod touch, and iPad. The new Apple TV will connect to the App Store, allowing users to download and run third-party apps, and will support network media and social networking.

Verizon iPhone Rumor: Apple Has Placed Order for Millions of CDMA Chipsets for December

Rumors of an impending Verizon iPhone continue to increase in volume and detail, as today, blog Techcrunch is citing anonymous sources in reporting that Apple has placed an order for “millions of units” of CDMA chipsets for December from manufacturer Qualcomm. Orders to component makers are usually the first clues that a new Apple device is about to be released, as when word leaked to Reuters in March 2009 that Apple was procuring 10-inch LCD screens for a device that was revealed to be the iPad several months later.

Techcrunch‘s report corroborates with other several other recent strong Verizon iPhone rumors. Bloomberg cited two anonymous sources in late June 2010 in reporting that a Verizon iPhone will go on sale in January 2011. Chinese newspaper Digitimes reported in early June that Apple had placed orders with Pegatron Technology to build the Verizon iPhone for delivery in late 2010. In May 2010, Digitimes cited analyst Ming-Chi Kuo in claiming Apple was currently testing a Verizon iPhone, and that its stage of development indicated a 2011 release date. Engadget reported in May that reader tips concerning an imminent Verizon iPhone had reached critical mass, with the tips having “surprisingly specific details.” The Wall Street Journal reported in March 2010 that Apple was working on a CDMA iPhone alongside the AT&T iPhone 4, which was released in June. The CDMA version was to be built later in the year by Taiwanese company Pegatron.

Bloomberg: Verizon to Offer iPhone Starting in January 2011

Bloomberg is citing two anonymous sources in reporting that Verizon plans to start offering the iPhone on its network beginning in January 2011, thus ending AT&T’s exclusivity for the device. The date complements a report earlier this month from DigiTimes stating that Apple had placed large orders from the Chinese manufacturer Pegatron Technology to build a CDMA version of the iPhone compatible with Verizon’s network starting in late 2010. Another Digitimes article in May suggested the current stage of development for the Verizon-compatible iPhone seemed to indicate a 2011 release.

Via Bloomberg:

Verizon Wireless, the largest U.S. mobile-phone company, will start selling Apple Inc.’s iPhone next year, ending AT&T Inc.’s exclusive hold on the smartphone in the U.S., two people familiar with the plans said.

The device will be available to customers in January, according to the people, who declined to be named because the information isn’t public. Brenda Raney, a spokeswoman for Verizon Wireless, didn’t immediately return a call seeking comment. Natalie Kerris, an Apple spokeswoman, and Peter Thonis, a Verizon Communications Inc. spokesman, declined to comment.

DigiTimes: Apple Has Placed Manufacturing Order for Verizon iPhone Due Late 2010

DigiTimes is citing sources in reporting that Apple has placed orders from Chinese company Pegatron Technology for manufacturing of a Verizon-compatible CDMA iPhone due to be shipped in late 2010, just in time for the Holiday season. The timetable could mean that Apple would introduce the phone at their annual September iPod event. Via DigiTimes:

Pegatron will also start shipping a CDMA version of the iPhone 4 to Apple in the fourth quarter and is currently using its plants in Shanghai, China to produce the products, the sources noted. The company is also working on gaining orders for MacBooks and iPads from Apple, added the sources.

On the heels of this news comes a Verizon executive telling eWeek that it’s a matter of when, not if, the iPhone is coming to Verizon. Michael Maiorana, Verizon president for the Washington-Baltimore-Virginia region, declined to give a specific timetable though, citing not wanting to create speculation that would hurt sales of Verizon’s current Droid phones.

Digitimes: Verizon iPhone on Track for 2011 Release

While recent rumors have suggested a Verizon iPhone could arrive as early as fall 2010, a new report from Digitimes research analyst Ming-Chi Kuo suggests that the current early stage of development for the Verizon-compatible model makes a 2011 release more likely.

While the next iPhone for AT&T Wireless and other GSM networks is expected in June, according to Kuo, the Verizon version is still in its testing infancy. The current stage of testing for the phone is called engineer verification testing, and it has two more stages to clear: design verification testing and process verification testing, before a ramp up to mass production can begin. Kuo states that sometime in 2011 is a more likely release date for the Verizon iPhone.

The CDMA (“Verizon”) iPhone will eventually be assembled by Taiwanese manufacturer Pegatron. Current GSM iPhones are manufacturerd by Chinese manufacturer Foxconn.

AT&T Raises Early Termination Fee to Deter iPhone Users from Switching to Verizon?

The Wall Street Journal is reporting that AT&T Wireless plans to raise the early termination fee for smartphone contracts from $175 to $325 starting June 1, 2010. The change will apply only to new contracts signed after that date. Via WSJ:

AT&T Inc. (T) plans to raise the fee it charges customers trying to get out of their smartphone wireless contracts early, a move that comes amid expectations that the carrier will lose exclusivity on the iPhone over the next year.

The Dallas telecommunications provider will raise its early termination fees to $325 from $175 on contracts signed for smartphones, as well as cellular-connected netbooks.

The change could be interpreted as a preemptive move by AT&T to deter iPhone customers from switching to Verizon once the device becomes available on that network. A recent flurry of rumors indicates that a Verizon iPhone could arrive as early as this fall.

The cost for Verizon switchers who buy a 4G iPhone on AT&T this summer may be more than just the $325 early termination fee. They will also likely have to purchase an entirely new 4G iPhone. The Wall Street Journal and others have reported that Verizon will get its own separate model of iPhone for their CDMA network (AT&T has a GSM network).

It may not be what Apple wants you to do, but if you’re interested in buying a 4G iPhone this summer but rather have it on Verizon, it may be best to wait a until the fall.

*Update* A reader notes that Verizon increased their early termination fee to $350 in the winter, which may indicate AT&T’s increase is just keeping pace and not further evidence of a Verizon iPhone.

How to Check If You Qualify for an iPhone Upgrade From AT&T Wireless

With the release of a new iPhone just around the corner, many people wonder if they qualify for AT&T’s discounted “upgrade pricing” for the new phone. The quickest way to check if you qualify is to simply dial *639# and hit Call from your iPhone. You’ll receive a text message back from AT&T that tells if and when your qualify. It looks like this:

Another way to check is to log in to ATT.com and click the Check Upgrade Options link on the rightside of your account view:

Another easy way is to stop into an AT&T Wireless store and ask them to check your upgrade status for you.

Qualifications for Upgrade Pricing

When you sign a 2-year contract with AT&T, it usually means you have to wait the entire two years to qualify for upgrade pricing. But there are exceptions. It’s possible to qualify early if your monthly costs are more than whatever ATT’s cheapest iPhone monthly plan is. As AT&T’s official iPhone FAQ explains:

AT&T, like most U.S. carriers, offers a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

There may be more good news if you’re an iPhone 3G user looking to upgrade to an iPhone 3GS soon. AT&T recently started moving forward the dates for upgrade pricing eligibility. From their FAQ:

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

Note that this currently does not include the rumored fourth-gen iPhone (aka, the iPhone 4G, iPhone HD, etc).

How Much Money Do I Save With “Upgrade Pricing?”

When AT&T offers you “upgrade pricing” on an iPhone, it means they’re giving you the iPhone at a lower price than what Apple would normally sell it for. The upgrade pricing for an iPhone 3GS 16GB is $199. Without it, the cost is $599. That’s a savings of $400.

What About Those Rumors of a Verizon iPhone?

Rumors about a Verizon iPhone have been around for a while, but recently the chatter has been getting louder. There seem to be indicators that a Verizon-compatible iPhone will be released sometime in the fall of 2010. So what happens if you sign a two-year contract with AT&T and then decide you want to switch to Verizon? Unfortunately, there will be some additional costs to you.

First, the iPhone you bought through AT&T will not likely not work on Verizon’s network. Current rumors state that Verizon will have it’s own model of iPhone with a CDMA radio inside (CDMA is the type of network Verizon has). That means you’ll have to buy an entirely new iPhone. Fortunately, Verizon is likely to offer subsidized pricing just like AT&T ($200-$400).

Another cost will be an Early Termination Fee for breaking your two-year contract with AT&T. The fee is $175 minus $5 for each month of the contract you’ve fulfilled. Via AT&T’s official terms:

An early termination fee of $175 applies if service is terminated before the end of the contract term and will be reduced by $5 for each full month toward your minimum term that you complete. If phone is returned within 3 days, activation fee will be refunded. If phone is returned within 30 days in like-new condition with all components, early termination fee will be waived. All other charges apply. Some dealers impose additional fees.

So total cost to quit your AT&T Wireless contract early and switch to Verizon? Roughly $300-$500.

Verizon iPhone Chatter Reaching Critical Mass

Website Engadget is reporting that they’ve received a recent wave of reader tips that strongly indicates a Verizon iPhone is coming “later this year.” The site claims that they’re received “surprisingly specific details” from Verizon employees and companies under NDAs that are currently testing the iPhone on Verizon’s network. The tipsters all tell a similar story, mainly that a Verizon iPhone is coming. Via Engadget:

….[W]e’ve noticed an uptick on the tip lines here at Engadget in the last couple weeks that’s becoming difficult to ignore. It’s one thing to say “hey, the iPhone is launching on Verizon,” but we’re noticing a particular confluence of facts that has us intrigued: it’ll drop sometime in Summer, possibly in concert with the announcement that Verizon’s first commercial LTE networks have gone live, and — tread carefully here, because this is pretty difficult to believe and we don’t want to get your hopes up only to have them smashed into a million pieces — it’ll supposedly even be a 4G launch device.

Engadget states that the inclusion of an LTE “4G” radio in the iPhone may amount to little more than a “publicity stunt” in the near term, as Verizon’s LTE rollout plans remain limited. Verizon Wireless CTO Tony Malone told Network World in February that they were on track to have LTE in 25 to 30 markets by the end of 2010, but it won’t reach 100% coverage of its current 3G network until 2013.

The inclusion of an LTE radio in the iPhone could present some engineering difficulties for Apple, such as extreme power usage that could quickly drain the iPhone’s battery. But Apple has been aggressive in acquiring low-power mobile chipset expertise and intellectual property that could assist in designing a 4G iPhone around LTE. The company has recently created its own low-power system-on-a-chip, the Apple A4, which is used in the iPad.

The inclusion of a largely untested, power hungry, cutting-edge technology like LTE would be uncharacteristic for Apple, who has been conservative in the past when it comes to implementing features that use up battery life (see the recent Adoble Flash debate and the lack of a 3G radio in the first-gen iPhone).

Engadget indicates that the Verizon iPhone could arrive as early as this summer.

Verizon CEO Says No iPhone Deal Yet (Video)

Anyone hoping for a clearer picture of when the iPhone will be available on Verizon’s network will have to wait a little longer. At a Council on Foreign Relations meeting in New York, Verizon CEO Ivan Seidenberg took a moment to address a number of Apple-related subjects, including the Google vs Apple rivalry, iPhone rumors, and the iPad, but couldn’t offer any positive news on the Verizon iPhone front, only clarifying that there was currently no deal in place with Apple.

When asked whether Verizon was taking sides in the Google vs Apple mobile phone battle by offering Google Android phones, Mr. Seidenberg said Verizon wasn’t taking sides but rather maintained the view that “networks should be neutral to anybody’s device, and we want to carry anybody’s device.”

Mr. Seidenberg also addressed recent rumors from the Wall Street Journal that the iPhone may soon be offered on Verizon’s network. Seidenberg seemed to downplay the rumor by stating that, in terms of making a decision to bring the iPhone to Verizon, the ball was squarely in Apple’s court. He stated that Verizon had already “expressed an interest” to Apple for carrying the device.

When asked if he had any idea of when Apple might make a decision, his response was “No.”

Mr. Seidenberg indicated that Verizon’s CDMA network may be the stumbling block for Apple, who preferred AT&T’s more widely used global GSM network. Seidenberg pointed to the next-generation LTE 4G networks that both Verizon and AT&T are planning on building as a way to conform to Apple’s vision of “one phone for phone world.”

To clarify the technical barriers of a Verizon iPhone, Seidenberg said:

So Verizon runs its wireless business on a technology standard that — it’s called CDMA, so it’s a different standard than the one that AT&T runs, GSM. So Apple decided to build its first device on the GSM standard because that’s a more accepted global standard.

I mean, our view, over time, is that as the devices come to a common architecture, we would be eligible for Apple to consider putting their devices on our network. It’s their shot, their call. We’re open to doing it.

A recent Wall Street Journal article claimed Apple was gearing up to manufacture two separate models of iPhone this year, one of which would be compatible with Verizon’s CDMA network. With Apple rumored to release a new GSM iPhone in this summer, it’s unlikely a deal with Verizon could be ready in time to release a separate CDMA iPhone alongside. Late 2010 or early 2011 would seem more likely if this scenario were true.

Concerning the iPad, Mr. Seidenberg said Verizon was very interested in its video-streaming possibilities from a network point of view, as the need for a unique stream of data to each device for delivering video would increase data traffic over Verizon’s network.

WSJ: The Verizon iPhone Is Coming

The Wall Street Journal is citing “people briefed on the matter” that Apple is working on two new versions of the iPhone, one of which is compatibile with Verizon’s CDMA network. The non-Verizon phone is set to debut this summer, with the Verizon phone following sometime in the fall.

The source claims the two models would be produced at separate facilities, with the non-Verizon iPhone being manufactured by Taiwanese company Hon Hai, and the Verizon CDMA model manufactured by Pegatron Technology. The CDMA iPhones are set for mass production this fall, but it’s unkown when they’d be released. Apple typically revs up manufacturing shortly before the release of a new product to the public.

Apple’s introduction of a separate line of iPhones compatible with Verizon’s CDMA network has long been in doubt, despite a high level of interest from consumers who preferred Verizon’s network over AT&T’s. In a March 2009 earnings conference call with analysts, Apple executive Tim Cook had this to say about Verizon and the iPhone:

Well, from a technology point of view, as you know, Verizon is on CDMA, and we’ve shown from the beginning of the iPhone to focus on one phone for the whole of the world and when you do that, you really go down the GSM root, because CDMA is—doesn’t really have a life to it after a point in time.

The introduction of a second iPhone product line would seem to break from the “one phone for one world” strategy, but may be a capitulation to the realities of the US wireless market.

Link: Wall Street JournalTwo New iPhones Coming; One May Be Aimed at Verizon