Prada Phone is Verizon's iPhone-killer

• Posted: Saturday, May 26, 2007
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• Author: pradhana
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• Filed under: Apple, iPhone, LG

A recent USA Today article claimed that AT&T has a five year exclusive contract with Apple for the iPhone, during which time Apple cannot make a CDMA version of the handset. In the same article, Verizon Wireless COO Denny Strigle says, "We do have a very good response in the mill. You'll see that from us in the late summer."

The Street predicts that the LG Prada phone, the KE 850, is Verizon's response. A Verizon Wireless representative, however, says "We have several music devices coming" including the LG Prada, "but there are others." The Prada phone is just as pricey as the iPhone: $600 (the iPhone is expected to be $500), but Verizon Wireless could subsidize the Prada, a move AT&T has already rejected for the iPhone.

AT&T's five-year exclusive arrangement with Apple to sell the iPod-inspired iPhone is seen as a potentially big threat to the continued growth at Verizon Wireless.

Verizon and AT&T have ridden solid gains in wireless users to 52-week highs this month. But if the iPhone is a hit, AT&T stands to win many new customers when the phone hits the market, stealing momentum and lucrative users from Verizon.

Verizon can stem some of the defections if it has its own supersleek iPhone imitation.

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