Rumors: ZTE Develops iPod 'Peel' for Sprint, CDMA iPhone Coming
National Business Daily, 8/11/10
Chinese telecom equipment manufacturer ZTE (0763.HK; 000063.SZ) will soon release its own "Peel" 3G-capable case for the iPod Touch. The product is being developed for US operator Sprint's CDMA business. Based on images leaked online, the ZTE product is a protective case for an iPod Touch sporting a Qualcomm CDMA2000 3G router and a 900mA battery. The ZTE "Peel" has reportedly been approved by the US Federal Communications Commission, but no launch date was revealed.
In related news, rumors have resurfaced that Verizon Wireless will release a CDMA version of the iPhone. Apple has reportedly placed a large order for CDMA chipsets with Qualcomm to be delivered this December, and a CDMA iPhone to reach the market by January 2011.
Editor's Note: For more background on this topic, please see "Apple Peel Turns iPod into iPhone" MD 8/10/10 issue.
CDMA network operator China Telecom (NYSE: CHA; 0728.HK) recently expressed interest in offering the iPhone in China (see "China Telecom Interested in iPhone, iPad", MD 7/21/10 issue); if Verizon ends up releasing a CDMA version of the iPhone, it could help pave the way for such cooperation between Apple and China Telecom.
As of the end of June 2010, China Telecom had almost 75 mln mobile subscribers, of which approximately 7 mln were 3G subscribers. A large portion of China Telecom's 3G subscribers, however, are data card rather than handset users (as of the end of 2009, China Telecom had recorded 4.07 mln 3G subscribers, of which roughly 3.3 mln were data card users and approximately 0.7 mln handset users.) To avoid overburdening its 3G network, China Telecom would like to promote greater uptake by handset users (for related news, please see "China Telecom Affirms Control over 3G Data Use", MD 6/28/10 issue.)
Keywords: iPhone iPod wireless 000063.SZ 0763.HK ZTE 3G Apple Sprint Verizon handset smartphone CDMA2000 EV-DO
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