World of Apple

Apple iPad

Rumours of a Verizon attached iPad have been circulating since before the device was even announced. Last week when Apple announced a partnership with AT&T it looked like the rumours were simply untrue but the originator of the rumours Clayton Morris of FOXNews.com has spoken to his Verizon source who claims that Apple and Verizon are continuing to work towards a deal.

According to Clayton, Verizon is “more interested in the lucrative iPhone contracts” but the Apple and the carrier are “very much talking and plan to bring an iPhone and an iPad” to Verizon in 2010. AT&T’s exclusivity over the iPhone is expected to expire in June this year.

The report also adds some insight into the pricing of the data for the iPad stating that, “AT&T was able to outbid every other GSM carrier with a $14.99 or $29.99 plan that gives customers 250MB or unlimited data, respectively.”

Of course Verizon does not operate a GSM network and would require Apple to build compatible hardware to work on Verizon’s CDMA network.

The notoriously unreliable and often outright outlandish Scott Moritz over at The Street has published a rumour suggesting that Verizon and Apple could be working together on the long rumoured tablet Mac.

Matching previous rumours of a device with a 9- to 10-inch display Moritz goes onto suggest that Verizon will subsidise the device. With this subsidy Moritz speculates that it will allow Apple to fit into the $300 netbook market, a niche Apple certainly doesn’t seem interested in entering.

Editors note: Published due to the fact that it was gaining traction around the web. Readers should be aware of Moritz’s poor track record.

An article in BusinessWeek today takes rumours of an Apple and Verizon partnership even further, suggesting that the companies could be working on two “iPhone-like” devices.

According to two people who are “familiar with the matter” one device is a less expensive “iPhone lite” type device while the other is a “media pad” which would be used to listen to music, view photos and watch high-definition video. This device would have the ability to place calls over a WiFi connection. The media pad device is described as smaller than an Amazon Kindle eBook reader but the touchscreen is larger than that of the Kindle display.

“The media pad category might go to Verizon,” said the person who has seen the device. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”

One of the sources adds that at least one of these devices could arrive as early as “this Summer”.

BusinessWeek also managed to get Verizon Wireless CEO Lowell McAdam to confirm that his company was in talks with Apple.

[Update] The Wall Street Journal adds further credence to the story.

Apple has had discussions with Verizon in recent months about its product roadmap, including a mobile multimedia device that is bigger than the iPod Touch but smaller than a laptop, one person familiar with the situation said. However, the talks have not become advanced, the person said.

Adding to previous rumours that Verizon and Apple were in talks over the iPhone, USA Today is reporting that Apple is giving consideration to a Verizon iPhone in 2010.

The rumours which come from “people familiar with the situation” state that discussions between Apple and Verizon began several months ago and have continued despite Apple CEO Steve Jobs being on medical leave.

The issue with Verizon is the use of a CDMA network which is not compatible with the current GSM based iPhone. It was only last week that COO of Apple, Tim Cook was dismissing rumours of a Verizon based CDMA phone.

Well from a technology point of view as you know, Verizon is on CDMA and we’ve shown from the beginning of the iPhone to focus on one phone for the whole of the world and when you do that, you really go down the GSM root, because CDMA is – doesn’t really have a life to it after a point in time.

USA Today goes onto speculate that any deal between Apple and Verizon would not stop Apple operating with AT&T.