Suppliers say Apple will build first batch of CDMA iPhones in December
Apple is expected to build its first 3 million Verizon-compatible CDMA iPhones in December 2010, contacts in the company's overseas supply chain reportedly indicated. — Analyst Jeffrey Fidacaro with Susquehanna Financial Group …
Context & Ripple Effects
The report adds a production-timing claim to a Verizon iPhone story that had circulated from a 2009 launch report through a renewed June rumor cycle and August reports pointing to a CDMA model. It remains unconfirmed: the supply-chain claim concerns an initial December build rather than an announced Apple or Verizon product launch.
The timing matters because Verizon is also preparing V CAST Apps for Android phones and has announced developer APIs for location, push notifications and messaging. A Verizon-compatible iPhone would put Apple’s existing handset-and-app ecosystem alongside those carrier-led efforts.
First-order effects
- If the reported build proceeds, Apple’s overseas suppliers would allocate capacity for an initial batch of Verizon-compatible CDMA iPhones in December.
- Verizon would gain a path to offer Apple’s iPhone on its CDMA network, though neither company has confirmed the arrangement.
Second-order effects
- Verizon’s planned V CAST Apps store would face a sharper ecosystem comparison with Apple’s iPhone software distribution model if the handset reaches Verizon customers.
- Apple’s carrier strategy would become less dependent on a single U.S. network, increasing its leverage in future carrier negotiations.
Third-order effects
- If the repeated CDMA reports culminate in a launch, U.S. carrier competition shifts further from network exclusivity toward handset portfolios, application ecosystems and developer services.
- The story is also a test of whether supply-chain reporting can signal carrier expansion before formal product announcements; this claim is still a rumor, not confirmation.
The trend: The Verizon iPhone rumor cycle points to a broader shift in which Apple’s U.S. distribution strategy may expand beyond carrier exclusivity as operators build competing software and developer ecosystems.