Verizon eyes partnership with Apple

Verizon Wireless is reportedly considering a partnership with Apple.

According to Business Week, the companies are currently thrashing out the distribution terms for two new iPhone-like units.

One device is described as an "iPhone lite," while the other is thought to be a "media pad" capable of playing music, HD videos and displaying photos. The "iPhone lite" is slightly thinner than the current iPhone, but will be cheaper to produce as it is powered by a system on a chip. Meanwhile, the media pad is apparently smaller than Amazon's Kindle electronic reader, but with a larger touchscreen. The pad may also be capable of placing calls over Wi-Fi and a high-speed wireless connection from Verizon.


"The media pad category might go to Verizon," a source told Business Week. "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."

Apple is also examining the possibility of developing a new iPhone that would utilise the Verizon's CDMA network.

However, Gene Munster, a senior analyst at Piper Jaffray (PJC), noted that the manufacture of a CDMA iPhone was "unlikely."

"We believe such a deal is unlikely due to the technology hurdles involved in building and supporting its first CDMA iPhone," wrote Munster in a research note.