Verizon and Apple discuss possibility of CDMA iPhone in 2010

USA Today is reporting that Verizon and Apple are discussing the possibility of developing an iPhone for Verizon's CDMA network with the goal of introducing it in 2010, according to anonymous sources familiar with the situation.

Apple's exclusive distribution deal with AT&T ends next year. Analysts expect the network carrier to try to persuade Apple to extend that contract, and say that Apple may try to sweeten the deal for itself should that occasion rise.

AT&T earnings fell 9.7 percent in the first quarter, though it activated 1.6 million iPhones, the company announced last week. Apple posted its best second quarter ever last week, including the sale of 3.79 million iPhones, a 123 percent increase since last year's quarter.