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CDMA iPhone Will be Ready by Early 2011 [UPDATED]

Please read entire post before reading this update.

When Verizon President and COO, Lowell McAdam, was asked to comment about the report from The Wall Street Journal, McAdam replied,

It’s one of those things that rolls out every few weeks whether there’s a basis for it or not. I can’t give you any insights, but I think Apple is the one that has to make that announcement. What I’ve always said is I expect at some point in time our business interests are going to align. I think things like LTE are another great reason why they’d want a device or tablet on that network. But I don’t have anything to say today about timing.

Despite the remarks, rumors of a CDMA iPhone arriving in early 2011 have persisted.

These rumors of a Verizon iPhone have been coming since it’s debut in 2007 but the “rumors” seem to have more and more “proof” behind them.

On Wednesday, The Wall Street Journal quoted “people briefed by Apple,” as saying the new iPhone,

would be similar in design to the iphone 4 currently sold by AT&T Inc.,

…but it would be using CDMA technology, the same technology both Verizon and Sprint use. They also stated that,

The phone, for which Qualcomm Inc. is providing a key chip, is expected to be released in the first quarter of next year, according to the same people.

Also on Wednesday, Shaw Wu, an analyst for Kaufman Bros., wrote:

in our checks with the industry and supply chain sources, we have picked up indication of development and progress on new form factor iPhones.

Representatives from Verizon, Qualcomm, and Apple all declined to comment on the issue, however, just a few weeks ago, Verizon CEO, Ivan Seidenberg, said no one should expect the iPhone on Verizon any time soon. The one and only reason why this statement would be a lie, is so that Apple’s fourth quarter earning do not drastically drop as people await the release of the new iPhone. This occurred when the iPhone 4 prototype was discovered. Consumers stopped buying the iPhone 3GS and instead waited for the iPhone 4 to be released which in turn drastically dropped Apple’s quarter earnings.

The Journal also stated that Apple,

plans to begin mass producing a new iPhone by the end of 2010 that would allow Verizon Wireless to sell the smart phone early next year, said people briefed by Apple.

Apple is also developing a new iPhone model, said people briefed on the matter. One person familiar with the new iPhone plan said the fifth-generation iPhone will be a different form factor from those that are currently available. It was unclear how soon that version will be available to Verizon.

Another interesting note that many websites overlook, is that Verizon’s CEO, Ivan Seidenberg, is scheduled to give the main keynote at the Consumer Electronics Show in January, 2011, which may very well be where the announcement for the Verizon iPhone occurs.

Verizon iPhone Likely to Come in January 2011

Recently there have been numerous rumors about the new iPhone that’s supposed to be announced in 2011. The reason why TechGeec hasn’t reported any of these rumors are because they’re still just rumors and we’ve been hearing rumors about a Verizon iPhone for the past three years since the original iPhone came out. But now it seems as if our hopes for this new iPhone might be coming true.

To start off, Verizon Wireless (United States) uses CMDA technology to store information for their phones unlike AT&T’s and T-Mobile’s SIM cards. CDMA technology requires absolutely no cards of any sort. All the information is stored by the cellular company (in this case Verizon Wireless).

John Gruber, a reliable source for Apple “rumors”, announced recently that the CDMA iPhone (again, it doesn’t have to be for Verizon, it can also be released for Sprint who also uses CDMA) is codenamed N92. The current iPhone 4 was codenamed N89 before it was released. Gruber also reported that this CDMA iPhone is in the EVT (Engineering Verification Testing) phase. This phase limits Apple to testing one device inside their labs (or wherever Apple tests the phones before they go out into the wild). The next testing phase would be DVT (Design Verification Test) where Apple employees are allowed to take the phones out into the world to test them (this is the phase in which the iPhone 4 was in when it was “lost”).

Enhancing the rumor of the CDMA iPhone, TechCrunch’s Steve Cheney reported that Apple is ordering millions of CDMA chips from Qualcomm. Assuming Gruber was correct in his claim that Apple is in the EVT phase, then this would be the ideal time for Apple to purchase this many CDMA chips if the phone will be released/announced in January 2011.

Also this week, AT&T revealed in a filing to the SEC (U.S. Security and Exchange Commission) that it is warning it’s investors about possible negative effects when “exclusivity arrangements end” for popular smartphones and the only exclusive and popular smartphone for AT&T is the iPhone. This report does seem to help these rumors develop even more because huge companies would not risk upsetting their investors for no good reason unless they feel absolutely necessary.

The last strong addition to the 2011 CDMA iPhone is that Verizon Wireless’s CEO, Ivan Seidenberg, was selected to give the high-profile keynote address at the 2011 International CES (Consumer Electronics Show) in Las Vegas this coming January. The head of next years CES reportedly said that he’s “looking forward to hear about Verizon’s next generation of products”.

Now again, none of these facts point directly at a CDMA iPhone in 2011. I, myself, have doubts about this because Apple’s and AT&T’s exclusivity contract ends in 2012, not 2011. For a Verizon (or Sprint) iPhone to be released prior to the contract expiring would mean that either both companies would have to agree on breaking the contract (I don’t see why AT&T would do this) or that Apple would have to buy AT&T out of the contract. And what I find interesting is that no one has said anything about their exculisivity contract and how it ends in 2012. On the other hand, these rumors are pretty convincing and so I’m holding out on replacing my LG Voyager (Verizon) this year until a CDMA iPhone is released (or not released) this coming January.

Be sure to leave a comment on this post telling what you think about these rumors and the January 2011 “CDMA iPhone”.