Apple Shuts Out Verizon on iPad as AT&T Feels Strain2010-01-28 13:40 by DanielaTags: Apple, AT&T, iPad, Verizon
Apple Inc. dealt Verizon Wireless investors and customers a blow by naming AT&T Inc. as the provider of wireless service for its tablet computer. Verizon Communications Inc.'s stock fell as much as 2.2 percent yesterday after Apple said AT&T would sell wireless plans for versions of the iPad that work with phone networks. The iPad may generate $100 million in earnings a year for AT&T, Piper Jaffray & Co. analyst Chris Larsen said. The choice to leave out Verizon was a surprise, given that AT&T has faced complaints from consumers that its network is overloaded by the iPhone, said Allen Weiner, an analyst at Gartner Inc. IPhone users typically consume twice the bandwidth of other smartphone customers, which has strained AT&T’s network, according to Sanford C. Bernstein & Co. "AT&T is going to need to make some sort of statement or some sort of acknowledgement that they're up to the test of supporting this," said Weiner, who is based in Scottsdale, Arizona. He said he was "shocked" that Verizon wasn't chosen as the network provider. AT&T uses a technology known as Global System for Mobile Communications, which may explain why Apple chose the network, said Piper Jaffray's Larsen. GSM is used in large markets outside in the U.S., including Europe. Verizon may be shut out of devices similar to the iPad until it begins upgrading its networks to a global standard this year, he said. Read more -here-
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David - 2010-01-29 09:06
Apple is not doing itself any favors by shutting out Verizon. Rather it is giving Google better traction in the smart phone race.
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