So what really makes the most sense when you boil it down? Try this on for size: The AWT is released as a WiFi and Bluetooth enabled device. What problems does that solve? First of all, the device won’t be tied to a different carrier, and Apple won’t be 
competing against itself, forcing users to choose between Apple devices on two different carriers. Now that Apple is able to reasonably market to everyone that is locked into the carrier that holds the iPhone, it has an extra trick up its sleeve; instead of putting expensive cellular data hardware in the AWT, why not cut down the cost and use an already established device to provide the internet. Hmm… what device would that be? Of course! The iPhone! With the 3.0 software update providing internet tethering via Bluetooth or USB, the iPhone could easily pair with the AWT and provide web access. Apple has a great marketting demographic in the existing 21.17 million (worldwide) iPhone owners because they obviously already enjoy Apple’s products. And even better, this drives additional revenue to AT&T as people sign up for tethering plans, which won’t seem as redundant and wasteful as paying for two separate data plans for two different devices on the same carrier. At the same time, the AWT will still be attractive to those who don’t want anything to do with carriers and two-year contracts by not having a celluar data plan as a prerequisite for purchasing the device. Not only this, but it would encourage consumers who buy the AWT (and don’t already own an iPhone) to pick up an iPhone as well, or vice-versa.
For these well laid reasons, I submit to you that Apple will not be releasing the AWT with Verizon, or any other carrier. Instead, the AWT will be a WiFi/Bluetooth device, and if Apple plays their cards right, they’ll nail the tether factor which will drive tethering plan sales for AT&T and encourage consumers to purchase the iPhone and AWT as companion devices.
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I agree with you Ben. Unless the device comes with some highly locked-down whispernet built into the contract, it will be a home-focused wifi-only device.
Well reasoned Ben. Though Apple might (in fact almost certainly does) see an AWT as a completely – non competeting product. It would be more of a competitor to the iTouch. It comes down to its main purpose. If it doesn’t have phone capabilities it won’t directly be competeting with itself. Taking this as a given – then it could be released with another carrier. After all, Apple want you to buy this and the iPhone. If you could simply tether it then where would be Apple’s profit? Apart from caring about their relationship with AT&T (which they might not worry about – after all AT&T have gained from being the sole purveyor of the iPhone in the US)
This would then suggest the opposite to your conclusion – namely that they will aim to use a different carrier.
So I conclude that if they don’t go with any carrier (and just sell in the shops), then you might be right about the tethering. However if they are going to use a carrier, then I think the rumours could well have some truth to them.
I didn’t mean to imply that Apple would be competing against themselves in terms of the devices, but what I’m saying is that they would have essentially locked away the big 6.4+ million demographic of people as potential customers because they are already in an agreement with AT&T, and it is highly unlikely that they would sign up to two carriers at once just to get the AWT from Verizon, and less likely that they would part with their iPhone and go for a Verizon phone so that they could get the AWT. By not locking the AWT into a specific carrier, they leave open that group of 6.4+ million US iPhone users that are likely to buy the AWT especially if they can tether to it.
I believe the best way to go with this device is to include a sim card slot and give us the ability to use it how we want. If you want to tether then thats fine but i on the other hand dont want to spend more money a month on AT&T’s shoddy network. The speed is not worth the price. If apple just sells it without a carrier for a decent price and with a sim card slot then they would sell alot more because anyone that has a current data plan with att can use the device on the web with 3g service. Simple solution and it would make customers very happy and they will buy them up like crazy because of the freedom.
Agree with DanM, this is exactly what the market needs, a super designed little Mac iMedia Tablett, without any boundaries with a plugin simslot and the fantastic Mac OS slimmed down on the machine, no gsm phone but to be used with skype and the likes.
This would Totally sell for all with an iMac desktop machine and a iPhone…
Cant wait to get one :-)
This is assuming that AT&T keeps the exclusive deal with Apple. If Verizon gets a CDMA version of the iphone, I can see this being tied to Verizon as well. The people who wanted the Iphone bad enough to switch to AT&T have already done so. Now the opportunity lies with Verizon and it’s marketshare in the US.