Hasta La Gadget!

Something Verizon opted not to touch upon during its much publicized press conference today in New York–off-contract iPhones. Apple’s long-awaited smartphone will run you $199.99 for the 16GB model and $299.99 for the 32GB.

As for the unlocked version–the carrier addresses the issue on its iPhone FAQ page, writing,

When purchasing iPhone at the 2 year promotional price a new agreement is required. However, you will also have the option to purchase iPhone at full retail price, which will not require you to sign a long-term agreement.

How much will the handset run? A lot–we know that much. Unlocked GSM iPhone 4s are currently going for around $800 for the 16GB model.

We just got a look at the Verizon version of the iPhone 4. Guess what? It’s just like an iPhone 4! There’s no custom pre-loaded Verizon software (like VCAST or some such bloatware), just that mobile hotspot tweak in the settings menu. There’s also no Verizon branding on the phone, though that’s hardly a surprise given Apple’s hatred of all logos that aren’t its own. The only real physical difference we can find are those tweaked CDMA-compatible antennas running around the edge — four in all, placed symmetrically and bumping down the volume / mute buttons. Interestingly, the phone is running iOS version 4.2.5, so perhaps that mobile hotspot functionality will make its way over to other iPhones when they sync up on iOS updates. We did try a speed test, clearing the cache and loading various sites simultaneously on the Verizon phone and our AT&T device, and while there were variations in the load times, there were too many external factors to really make a judgment call just yet.

Continue reading Verizon iPhone first hands-on! (update: video)

Verizon iPhone first hands-on! (update: video) originally appeared on Engadget on Tue, 11 Jan 2011 12:27:00 EDT. Please see our terms for use of feeds.

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The wait is over.

Verizon Wireless, the nation’s largest wireless mobile provider, announced Tuesday that it will offer Apple’s wildly popular iPhone to its nearly 100 million customers, breaking four years of exclusivity by arch-rival AT&T.

Verizon’s iPhone launch will intensify the already ferocious competition raging in the mobile phone market between the iPhone, Research in Motion’s Blackberry line of devices, and handsets powered by Google’s Android mobile operating system.

For Apple, the Verizon deal opens up a vast swath of the market for its signature product, the iPhone, certainly one of the most iconic mobile devices of the last decade.

“This will be the first iPhone for millions of Verizon subscribers who have not had the ability to access Apple’s hardware or the App Store,” said Rana Sobhany, an expert on Apple’s mobile products and the author of Mobilize: Strategies for Success from the Frontlines of the App Revolution.

“Verizon’s customer base will immediately scramble to download millions of apps within the first 30 days,” Sobhany added.

Verizon president Lowell McAdam made the announcement at an event in New York City on Tuesday morning. He said the iPhone 4 would be available for pre-order to existing Verizon customers beginning February 3rd, and then to new customers on February 10th.

Verizon will offer two versions of the device: a 16-GB model for $200 and a 32-GB model for $300, both with a two-year contract. Verizon did not disclose the cost of its iPhone-related data plans but a spokesman said the company would do so before the iPhone goes on sale. There were rumors of the elusive white iPhone, but a Verizon representative told CNET that it would not be forthcoming next month.

Verizon said the iPhone will include a new “Personal Hotspot” allowing customers to use the device to connect up to five Wi-Fi enabled devices, a feature commonly known as tethering.

But like all of Verizon’s CDMA-based phones, the device will not support simultaneous voice and data usage, which means if you get a voice call, you lose your data connection. Verizon’s iPhone will also not be compatible with the wireless giant’s new LTE network, which promises faster data speeds than the company’s existing 3G network.

Apple chief operating officer Tim Cook preferred to focus on the big picture. “We’re incredibly pleased to give Verizon customers the choice they’ve been waiting for,” he said.

Verizon Wireless CEO Dan Mead and Apple COO Tim Cook at Verizon iPhone launch, New York. Photo by Sam Gustin, Wired.com

The Verizon iPhone launch follows years of speculation about how long AT&T’s exclusive contract to sell the device would last.

“It just goes to show that if the press writes about something long and hard enough, it will come true,” McAdam quipped.

Investors pushed AT&T shares down 1.8 percent Monday ahead of the Verizon announcement.

The two giant wireless rivals have already commenced bickering about the iPhone. In a statement, AT&T spokesman Mark Siegel said the company’s GSM technology is faster than Verizon’s CDMA technology, and warned Verizon customers to get “ready for life in the slow lane.”

“AT&T is known for a lot of things, but network quality is not one of them,” shot back Jeffrey Nelson, a spokesman for Verizon Wireless.

Wall Street Apple analyst Gene Munster predicts that Verizon will sell as many as 9 million iPhones in 2011. Other analysts forecast sales of as many as 13 million units.

But Dan Hays, an analyst at consulting firm PRTM, thinks those estimates are high, and is calling for 5 to 7 million handsets to be sold.

“While the launch of the Apple iPhone on Verizon’s CDMA network marks a turning point for the U.S. wireless market and shifts the competitive landscape for high-end wireless subscribers, we believe that current estimates of its potential sales are overblown and fail to contemplate the likely benefits to Verizon’s other smartphone devices,” Hays said in a research note.

AT&T is moving to diversify its product line after several years in which the iPhone anchored the company’s stable of devices. This year, AT&T plans to introduce 20 new phones, including 12 powered by Google’s Android operating system, in addition to Blackberry devices and phones running Microsoft’s WindowsPhone7 software.

“AT&T is clearly reducing its dependence on Apple,” Gleacher and Co. analyst Mark McKechnie observed.

For its part, Verizon will likely pay a steep price for the privilege of selling the iPhone, according to Bloomberg. The company could spend as much as $5 billion in 2011 subsidizing customers’ purchase of the phones, which it will sell at a discount in order to induce new subscribers to sign up for a two-year contract.

Apple shares opened trading Tuesday at over $340 per share, up more than 50 percent in the last year.

Photos: Sam Gustin/Wired.com

“If the press writes something long enough and hard enough, eventually it comes true,” Verizon CEO Lowell McAdam began, addressing a small crowd of journalists at the company’s press event in Manhattan today. “Today we’re bringing to market the fruit of our strategic partnership with another giant of the high tech industry and that’s Apple.”

After years of speculation from Verizon customers and an overzealous media, the wireless carrier today announced that it will finally be adding Apple’s popular handset to its line of smartphones.

Apple COO Tim Cook joined McAdam on stage. “We’ve been looking forward to today for a long time,” he told the press. “Since 2007 the iPhone has been a phenomenal success and has completely changed the expectation of what you carry in your pocket.”

The CDMA Verizon version of the phone will utilize the carrier’s 3G network, EVDO. It offers the standard features introduced with the AT&T iPhone 4 model, including Facetime, Retina display, HD recording, and a 5MP camera. The handset will be available through Verizon and Apple stores.

The phone will also feature 3D personal hotspot capabilities, letting users connect as many as five WiFi devices to the handset.

Verizon executive Dan Mead took the stage next to brag about the state of Verizon’s network, a primary selling point, in light of the phone’s notorious tendency to clog AT&T. “We have more than enough capacity,” said Mead. “We have designed this network for customers to have the optimum experience. We have been drive testing this device on our network and now we’re into the thousands of devices on our network over the last several months, and we could not be more pleased about where we are.”