Verizon Worldmode iPhone 2010 Q3 Rumors

Apple is readying a smaller UMTS/CDMA version of the iPhone, AppleInsider reports. The new handset would be compatible with Verizon's CDMA network in the U.S., and still be compatible with 3G UMTS networks (Hello T-Mobile?). The source comes from within the handset supply chain, via an industry report by OTR Global.

The devices, to be built for Apple by Pegatron, a subsidiary of Asustek, will feature a 2.8 inch screen instead of the current iPhone's 3.5 inch one, and will run on a new Qualcomm made hybrid chip.

The device reportedly was designed specifically for Verizon' US network, but it will also be a way for Apple to sell a single handset worldwde to networks. This would allow Verizon to offer the iPhone 3rd quarter of 2010, well before they fully deploy 4G LTE. Would the added sales to Verizon compensate Apple for the bargaining power they would lose with AT&T? AT&T accounts for about 30% of the mobile subscribers in the US, which leaves a whole lotta potential smartphone owners money on the table. On the other hand, those subscribers will be fair game for the iPhone when 4th generation LTE network technology rolls out in 2 or 3 years time. It seems like a lot of trouble to go through for not much return.

This OTR report holds out a ray of hope for those iPhone AT&T customers fed up with weak signals and dropout, if nothing else.