Apple (AAPL) Rumors – Verizon’s iPhone

Here is your daily Apple Inc. (NASDAQ: AAPL) stock news and rumors report  for Dec.  6, 2010. The Verizon iPhone returns to the news this morning as a new Wall Street analyst note indicates that the telecom wants to pay to keep the device off of Sprint and T-Mobile’s networks. In other news, the new Mac App Store may be coming much sooner than previously thought; a new rumor claims the digital storefront will launch on Monday. Finally, publishers continue to fight with Apple over bringing digital magazine and newspaper subscriptions to the iPad.

Verizon to Pay for iPhone to Not Go to Sprint, T-Mobile: Whether it’s a new CDMA device built for the telecom’s successful 3G network or a version of the inevitable iPhone 5 tailor made for the new 4G long-term evolution network that began its soft launch this past weekend, there will be a Verizon (NYSE: VZ) iPhone one way or another in 2011. Analysts and consumers alike have expected Apple to announce a version of the popular smartphone since the beginning of 2010 as the company’s original exclusivity contract with AT&T (NYSE: T) expired in the spring. The latest wrinkle in the ongoing saga of the Verizon iPhone is that the telecom is rumored to be paying Apple a hefty fee to bring the device to its network and to keep Sprint Nextel (NYSE: S) and T-Mobile USA from getting their own iPhones. Kaufman Bros. analyst Shaw Wu told investors in a note today that sources from inside Verizon claim that the company is not only accepting Apple’s terms to bring the phone to its network — it’s been rumored in the past that Apple was reticent to offer the iPhone on Verizon’s network because the iTunes and iPhone App Store would be forced to compete with Verizon’s VCast mobile storefront. Wu says that Verizon “may be willing to pay for exclusivity to itself and AT&T” now that Apple is in the negotiations “driver’s seat” after reporting 14.1 million iPhone sales during the third quarter of fiscal 2010. Wu’s note has more than just good news for Apple and Verizon shareholders though. The analyst believes that Research in Motion’s (NASDAQ: RIMM) BlackBerry 6 operating system should inject some much needed life in the company’s line of BlackBerry phones supported by Verizon.

Mac App Store Launches on Dec. 13?: The new app store for Apple’s line of desktop and laptop computers may be coming a whole lot sooner than expected. A rumor originating at AppleTell claims that Apple  is asking app developers to have their new apps for the Snow Leopard operating system, OS X 10.6, ready for launch by the end of day today. The rush is anticipation of a Mac App Store launch that will take place on Monday. It was previously thought that the Mac App Store would launch in early 2011 alongside a new software update, OS X 10.6.6, but Apple distributed a second beta of that update last week, leading some to believe that the App Store would arrive before the end of the calendar year. Apple CEO Steve Jobs wanted to launch the service even earlier according to AppleTell‘s source. 

Apple and Publishers Continue to Clash Over iOS Subscriptions: Apple is expected to announce a new subscription pay model for iOS apps and a media event later this week, redefining the still emerging app magazine and newspaper market on the iPad and iPhone. Rumor is, though, that Apple continues to fight with (magazine and newspaper publishers over app subscriptions. Apple blocked Time Warner  (NYSE: TWX) from selling magazine apps for publications like Sports Illustrated though the App Store earlier this year forcing the publisher to sell Time Inc. iPad publications through its own site. A MediaMemo report by Peter Kafka published last week says that Apple continues to clash with a variety of publishers, with subscriber information sharing at the center of the conflict. Apple is apparently unwilling to share subscriber data such as names, mailing addresses, and e-mail addresses with magazine publishers who want it to provide to advertisers. Publishers also continue to quibble with Apple over the company’s standard revenue sharing model that has Apple taking 30% of every sale on the App Store. Kafka says that Apple’s unwillingness to compromise is driving magazine publishers to discuss options with Google (NASDAQ: GOOG) to bring their publications to tablets running the Android operating system. Considering Google takes the same 30% cut of sales through the Android App Market, it’s questionable whether they will find a better deal with Apple’s biggest mobile software competitor.

As of this writing, Anthony Agnello did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, https://investorplace.com/2010/12/apple-aapl-rumors-%e2%80%93-verizons-iphone/.

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