What's Behind the Apple-Verizon Rumor

The knock on CDMA has to do with its global reach, or lack thereof. "CDMA is a technology with a limited future," says Forrester analyst Charles Golvin. "There is not a commensurate increase in global market opportunity."

It's a better bet that the rumor has been started to give Apple some leverage in its exclusivity discussions with AT&T. An Apple-Verizon deal would indeed expand iPhone's coverage and give Verizon some bragging rights in its heavy-weight bout with AT&T. "Verizon desperately needs the kind of excitement that Apple brings with the App Store," Dulaney says.

Such a move would also help Apple reduce the role of carriers, which Golvin believes is in Apple's long-term interests. Apple would probably prefer to sell directly to consumers with little to no carrier involvement. "However, I don't think the timing is optimal for Apple to push this issue," he says, "and hence I think the Apple-AT&T exclusive deal will persist for another year."