There's never a dull moment at Apple (Nasdaq: AAPL). Just as folks are lining up to be the first iPad owners, there's already talk about Apple going the multicarrier route with its iPhone.
After three years of AT&T (NYSE: T) exclusivity, The Wall Street Journal reports, Apple is developing a CDMA phone for Verizon (NYSE: VZ) customers. Clearly, this is a volume-widening move for Apple and a market-opening maneuver by Verizon Wireless.
Shares of rival smartphone makers Research In Motion (Nasdaq: RIMM) and Palm (Nasdaq: PALM) took a hit on the news, and rightfully so.
However, there are still a few questions that few investors seem to be asking, particularly when it comes to AT&T.
- If AT&T no longer has iPhone exclusivity in this country, will it be paying a smaller subsidy? If so, are $199 iPhones about to get more expensive?
- Are other smartphone makers truly toast? After all, if Verizon begins aggressively marketing the iPhone, won't AT&T turn more of its marketing attention to its non-iPhone devices?
This smartphone chess game is heating up.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Despite the maelstrom of negative publicity over sticky accelerators and faulty brakes, Toyota Motors (NYSE: TM) apparently had a great March in terms of new car sales.
- Shares of Cephalon (Nasdaq: CEPH) took a hit when the Food and Drug Administration failed to expand its sleep disorder treatment to cover jet lag.
Until next week, I remain,
Rick Munarriz
