Mobility Watch

Since Apple chose Cingular (AT&T) as its carrier to roll out the new iPhone, does that mean there will never be a CDMA version of the device, and that Verizon and Sprint will never be able to sell it?

Apple’s decision to produce iPhone as a GSM cellular device has a lot to do with GSM’s predominant position as the cellular transmission system of choice worldwide.  About 70% of the world’s cell phones are GSM.  Certainly Steve Jobs envisioned marketing the iPhone on a worldwide basis.  And although Cingular (AT&T), a GSM carrier, has won first crack at marketing the iPhone here, there’s a strong possibility that iPhones could eventually be sold unlocked, to be used on any GSM system carrier, or that T-Mobile could wind up selling them as well.

But will Apple eventually want to go after Verizon and “the network”?  There are several good reasons for him not to.  For one, the CDMA system is awfully carrier-specific.  Steve Jobs likes the idea of controlling his product’s destiny.  He no doubt appreciates the fact that, if Cingular (AT&T) decided to stop marketing iPhones, he could cut a deal with T-Mobile in a heartbeat.  The GSM system allows for handsets to go from one carrier to another with little hassle.

On the other hand one carrier’s CDMA handsets are pretty much “locked in” to that carrier.  And the CDMA carriers maintain a lot of control over features.  Verizon Wireless is well known for disabling features like certain Bluetooth capabilities on some of its handsets.  Handset manufacturers have very little say in the matter.  Steve Jobs wouldn’t like that. 

Then there’s the matter of Qualcomm’s royalties for the CDMA system, which Apple would have to pay in order to make CDMA handsets.  Look how Steve Jobs rebelled against the idea of settling with Cisco over the iPhone trademark.  I’m sure Jobs doesn’t want share anything he doesn’t have to, when it comes to iPhone, including royalties.

While Verizon Wireless appears to be on the outside looking in when it comes to the iPhone, potential partners are reaping a windfall even before the handsets are built.  Foxconn International Holdings in China, which makes handsets for Nokia and Motorola, saw its stock jump 4 percent in a single day Friday when it was rumored to be in line to manufacture some or all of the new iPhones. 

Apple, iPhone, Steve Jobs, Verizon Wireless, Sprint, GSM, CDMA, Qualcomm

[via International Herald Tribune]