RSSReport: Verizon Passed on iPhone Deal
By Nate Mook | Published January 29, 2007, 2:33 PM
According to a report in USA Today, Verizon was offered exclusive access to Apple's recently unveiled iPhone almost two years ago, but rejected the deal due to its stringent terms. Apple ended up partnering with Cingular for the $499 iPhone, which debuts in June.
According to the paper, Apple insisted on limited distribution of the iPhone: CEO Steve Jobs wanted the device sold only in Verizon retail stores and Apple stores. All other distribution partners, including Wal-Mart, Best Buy and smaller resellers would have been left out.
"We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial," Verizon vice president Jim Gerace told USA Today.
In addition, Apple wanted sole control over customer service of the iPhone. Verizon says that it did not want to step back and rely on Apple to provide support to its customers. Cingular has yet to detail its distribution plans for the iPhone, but said it would field service calls regarding the device.
Apple reportedly also wanted a cut of monthly fees. Such a requirement would be unprecedented in the mobile phone industry, as carriers usually subsidize the cost of handsets but never pass on recurring charges. Cingular is unlikely to have agreed to that stipulation, as its customers can switch phones by simply swapping their GSM SIM cards.
Cingular has a five-year exclusive with the iPhone in the United States. Apple will partner with other carriers in Canada, Europe and Asia, although has yet to make any announcements in those regions. Pricing is set at $499 USD for the 4 GB model and $599 USD for the 8 GB model, with a 2-year contract from Cingular.
well well well Verizon, you lost out - i believe there will be an exodus to cingular as a result of this deal (ok i'm one of those Mac users) but until today i was hesitant about moving, because i had found Verizon service to be exemplary. Today Verizon let me down in a big way -- and so I feel i can move to Cingular with a clear conscience. Here I come iphone!!!!
Score: 0
|as good a wireless provider as verizon is their phones suck ass. the chocolate was a dissapointment. and their customer service might as well be sony's:::::nonexistent.
and i dont care what people say about apples products. even if the product isnt that great, one thing every apple product does is perform the way it should, reliably. unlike many many other products out there which may be "cooler", apple pruducts from phones to computers to the everywhere ipod rarely have problems. and if they do apple handles it well.
hahaha i dare everyone of u to someday switch to this "goddlike" verizon and attept to get support. the people at the walmart electronics counter are more qualified.
Score: 0
|Don't forget, Verizon and Cingular are very different animals these days.
Verizon has moved beyond cellular and is into landlines w/ DSL and their fiber optic roll-out with FIOS - which also provides television services! When you think about it, the iPhone would be a direct competitor to many of their budding services and, under the terms of the Apple contract, they would not be the ones to profit if it becomes a big deal.
If Verizon had iPhone under their banner, they would be powerless to stop it (as backwards as that sounds). At least if another carrier has it, Verizon is free to fight it. Pretty good move.
Score: 0
|Verizon is such a lost cause. Their phone selection sucks and they really miss the boat on what consumers really want.
"it(Verizon) did not want to step back and rely on Apple to provide support to its customers"
-Oh thats rich.. verizons customer support is like talking to the mob!! Another example of Verizon not having a clue as to what their customers needs are.
Score: 0
|When it comes to a phone. What people is something that work when it's needed. If you look around, most people still carry a simple phone.
The iPhone is hugh, I doubt it those who has always into small phone will look into it. Will see what happen in a few months.
Score: 0
|Cingular is horrible. I've been all over the country and when I was with Cingular I frequently dropped calls. Verizon is MUCH better, I'm even able to pull a signal in New Hampshire and other more remote states. I like the iPhone look, but I don't see it being more than a novelty until they support 3G and other technologies, as well as broad carrier support. 600 bucks for a phone? I might as well buy a ps3. Good luck to the iPhone.
Score: 0
|"600 bucks for a phone? I might as well buy a ps3."
Yeah, because we all know that the PS3 can be used as a phone, and vice-versa, right?
Score: 0
|HAhaha someone has been sitting too close to the TV with their PS3!!
Joke of the day: "I like the iPhone look, but I don't see it being more than a novelty" lol
:o)
Score: 0
|I was with ATT had to switch a few years ago because I could not drive more then 30mins without the call dropping. Verizon is BY FAR the best carrier. In fact I have been able to drive from LA to Las Vegas with the broadband card and have internet shared with 4 computers the whole way.
And a note on having a mp3 player as your phone? Hmmm.. Tell your client sorry couldn't take your call because I was listening to music and killed the battery..
Score: 0
|Leave it to Apple to eliminate distribution channels...
Score: 0
|Funny, Cingular is the largest cell carrier in terms of subscribers. That's hardly an elimination of a distribution channel: that's an upgrade over Verizon.
Score: 0
|Another huge spaff on Verizon's forehead. LOL
Score: 0
|I've been on Verizon W for years. They've been berry berry good to me (sorry, couldn't resist). If the iPhone is half as cool as it has been hyped so far, I may switch to AT&T, but I'll give VZW another chance first.
Score: 0
|Well business is business but I certainly would have liked to have the iPhone on Verizon.
Score: 0
|