Phone
The phone may be introduced next year, said the person, who declined to be identified because the talks are in the early stages. Verizon is also talking with Apple Inc. about selling a version of the iPhone, potentially giving the carrier access to the best-selling consumer handset, the person said yesterday.
Apple and Microsoft, which already compete in operating systems for personal computers, are jockeying for partners that can help them sell more wireless devices and software. Verizon and AT&T Inc. are fighting to offer the latest handsets, which help boost revenue from data services such as video and music downloads.
Brenda Raney, a spokeswoman for Basking Ridge, New Jersey- based Verizon Wireless, declined to comment. Greg Sullivan, group product manager in Microsofts mobile business, also declined to comment on any talks. Apples Natalie Kerris wouldnt comment on any discussions with Verizon.
Microsoft, the worlds largest software maker, plans to put the Zune software on mobile phones from various manufacturers and carriers, Andy Lees, senior vice president of the companys mobile business, said in February. The Redmond, Washington-based company isnt building a Zune phone itself, he said at the time.
IPhone Competition
Lees said last month that Microsoft wants to work with handset makers and carriers to bring less expensive devices to market with features similar to those of the iPhone.
Microsoft is probably developing so-called reference designs, or guidelines to be followed by handset manufacturers, said Matt Rosoff, an analyst at Directions on Microsoft, a Kirkland, Washington-based research firm. That would let Microsoft play a role in designing the hardware and software — helping it match features such as the iPhones touch screen, he said.
Microsoft said in an e-mailed statement that its strategy hasnt changed and that the company works with many mobile operators and handset makers.
A deal between Apple and Verizon would allow Apple to reach more customers in the U.S. and sign up people who dont want to use AT&T service. AT&T has been the exclusive U.S. carrier for the iPhone since its debut in 2007.
Verizon isnt planning an iPhone for its current network, which uses code-division multiple access technology, the person said. The standard isnt widely used overseas, limiting its appeal for Apple. Verizon probably will offer the phone on networks using its new Long-Term Evolution standard, which offers faster data speeds, according to UBS AG analyst John Hodulik in New York.
Cook Meeting
Cook said last week that Apple is “very happy” with AT&T, and that Verizons older CDMA network “doesnt really have a life to it after a point in time.”
Cook, filling in while Apple CEO Steve Jobs is on medical leave, didnt respond to an e-mail seeking comment, and Kerris said he wasnt available for an interview.
“We are thrilled with the iPhone and delighted with the partnership,” said Mark Siegel, an AT&T spokesman. He declined to comment on any phone being offered by Verizon, calling it speculation.
Verizon Communications Inc., which co-owns Verizon Wireless with Vodafone Group Plc, rose 42 cents to $30.96 yesterday in New York Stock Exchange composite trading. Apple, based in Cupertino, California, dropped 83 cents to $123.90 on the Nasdaq Stock Market. Redmond, Washington-based Microsoft declined 47 cents to $19.93.