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Apr. 30, 2009

Apple, Verizon Wireless, AT&T and Microsoft are just a few of the names coming up as speculation continues this week over the future of the iPhone, and just about anything that can sucessfully compete with it.

USA Today began the rumors Monday by reporting that Apple wants to bring a CDMA version of the iPhone to Verizon Wireless’ network.

There also are discussions surrounding the renewal of Apple’s exclusive iPhone contract with AT&T, which expires in 2010. The Wall Street Journal reported yesterday that Verizon and Microsoft are now in talks regarding a new mobile device, code-named "Pink," that would give the wireless carrier a touchscreen Windows-based phone that could compete with the iPhone.

Some wireless industry insiders are now speculating that the talks are just standard business practice.

Others, such as Frank Dixon, v.p. of research for In-Stat said “I don’t think there’s anything about this that is average, everyday stuff. It’s typically always been the carrier driving the ship, not the device manufacturer. But there's no question that the iPhone has created quite a sensation in the mobile industry.”

Regardless of what happens in the near future, the big players in these most recent rumors have their eyes on ARPU (average revenue per user), Dixon says. “They don’t care about who wins the device war. What they care about is driving revenue. It's all about ARPU.”

“I don’t think you’ll see some kind of post iPhone morphing of AT&T, but one of the things they’re really focusing on at AT&T is that roughly 62 percent of their mobile handsets are going to have Qwerty keyboards. It’s got everything to do with text messaging,” added Dixon.

Asked what a post-iPhone AT&T will look like, Dixon said the company has a solid business plan, citing the carrier’s recent attempt to drive text messaging by offering a wide range of mobile devices with Qwerty keyboards.

There's no question that the iPhone has been good to AT&T, and it was a major contributor to the company's last two quarters.

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Source: USA Today.