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Smartphone, Wireless, and Mobile Technologies Forum

    
Verizon Said No to iPhone
Brett_Tabke




msg:3235945
 4:21 pm on Jan 29, 2007 (gmt 0)

[usatoday.com...]

Verizon Wireless, the No. 2 U.S. cellphone carrier, passed on the chance to be the exclusive distributor of the iPhone almost two years ago, balking at Apple's rich financial terms and other demands.

Among other things, Apple wanted a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers, said Jim Gerace, a Verizon Wireless vice president. "We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial."


 

coldfused




msg:3236022
 5:14 pm on Jan 29, 2007 (gmt 0)

Cingular obviously could.

tinusg




msg:3236024
 5:15 pm on Jan 29, 2007 (gmt 0)

Mutally benificial in their eyes is probably something like this: Verizon 95% and Apple 5%.

whoisgregg




msg:3236046
 5:26 pm on Jan 29, 2007 (gmt 0)

It's too soon to tell if Verizon was being smart or stupid with this move. In a year we'll be able to tell for sure.

My prediction? Verizon screwed up.

surftrack




msg:3236117
 6:00 pm on Jan 29, 2007 (gmt 0)

we won't know until the phone is in the hands of it's target audience for more than a month or two.

panic




msg:3236184
 6:30 pm on Jan 29, 2007 (gmt 0)

It's too soon to tell if Verizon was being smart or stupid with this move. In a year we'll be able to tell for sure.

Hindsight is always 20/20.

Verizon basically has the monopoly on terrible phones, but great service/reception.

willybfriendly




msg:3236192
 6:37 pm on Jan 29, 2007 (gmt 0)

Among other things, Apple wanted a percentage of the monthly cellphone fees...

Lack of residuals is a major gripe by many in the cell phone market. I know dealers that would gladly take a steep reduction in sign-up commissions in trade for residuals. A much more predictable stream of income.

'twould be interesting to see the details of the Cingular deal (although AT&T is dropping the Cingular brand name in a convulsion of corporate stupidity - spend money establishing a brand, and then spend more dis-establishing it. That ought to make the shareholders happy!)

WBF

surftrack




msg:3236198
 6:45 pm on Jan 29, 2007 (gmt 0)

yeah...who is really the one being stupid.

not to mention the irony in announcing a deal with "cingular" even though ATT is saying...no more "cingular".

bcolflesh




msg:3236225
 7:10 pm on Jan 29, 2007 (gmt 0)

Verizon basically has the monopoly on terrible phones, but great service/reception.

Verizon definitely has the best coverage/network on the east coast - they don't manufacture any phones and use a network-based permissions system, so technically any phone will work with their service - they will just give you a hard time if try to get one enabled that they aren't selling (at a ridiculous markup).

tictoc




msg:3236445
 10:01 pm on Jan 29, 2007 (gmt 0)

although AT&T is dropping the Cingular brand name in a convulsion of corporate stupidity

AT&T is smart for doing it with the Iphone Rollout.. You have to give them credit for that.

AT&T is a stronger name than Cingular and will be great for corporate marketing.

I think Verizon was just being greedy and not realizing the potential of the power of what the Iphone may do. It will be interesting to see how much this innovative phone will change mobile internet browsing (may be no need for .mobi) and the cell phone industry.

walkman




msg:3236456
 10:08 pm on Jan 29, 2007 (gmt 0)

maybe apple was stupid. From what I have read Verizon has better reception and service. Many people were saying that too bad that Apple went with Cingular. If enough people balk at iPhone because of Cingular then taking a smaller % for a lot more phones /contracts sold would have been better for Apple. I personally like Verizon.

Only time will tell and Verizon's concerns were valid ones, especially on the service part. If the word spread that iphones are breaking and apple is not replacing them, Cingular takes a hit on all sides, not only on iphone related sales. Apple is huge brand, but so is Verizon and when in doubt, status quo works just fine.

Trisha




msg:3236565
 11:57 pm on Jan 29, 2007 (gmt 0)

That sucks - my family lives in a really small town and last I checked Verizon was the only phone that covers that area. If that is still true, then no iphone for me - I need a phone when I am visiting my family.

surftrack




msg:3236574
 12:07 am on Jan 30, 2007 (gmt 0)

AT&T is a stronger name than Cingular and will be great for corporate marketing.

AT&T Wireless had the absolute worst rating of all carriers and did so badly that AT&T basically shut it down.

We do have a short term memory...but not that short...

goubarev




msg:3236606
 12:36 am on Jan 30, 2007 (gmt 0)

Verizon, indeed, has a great coverage. I live in Los Angeles, and never had a dropped call in 5 years! My friends using Verizon also say they have no problems with reception...

Don't agree about phones - they do have nice phones (at least where I am at). I've got LG vx8300 w/ mp3 stuff and all other "smart features" - no complains about that - free too...

Don't know about the iPhone. Who knows... it maybe a "flop" - we'll see in a couple of months... Too bad, they couldn't agree. It would be nice to check it out. Though, it'll be expensive and way-over-rated same as all other Apple stuff (As you see, I'm somewhat anti-Apple).

BillyS




msg:3236653
 1:33 am on Jan 30, 2007 (gmt 0)

Even if iPones take off you won't know if this was a good deal or not for Verizon. You won't know it because you don't know how much the carrier is giving back to Apple (if they are making money...). I have to believe that the folks at Verizon struggled with the decision.

Let's face it, would you switch carriers just to get a cool phone? I suspect not a lot of folks would... I wouldn't switch.

And keep in mind there were two parties at the table - so the failure of the Apple / Verizon deal is not just Verizon's fault. In fact, I'd say the loss was a big one for Apple, not Verizon.

Gomvents




msg:3236714
 2:56 am on Jan 30, 2007 (gmt 0)

Verizon made the right choice here - Apple is a horrible company... they will not last... they cannot. Think of how much they spend on marketing and advertising. How many iPods you think they'll have to sell to pay for all that? What about their programmers, executives etc? Think about it... Apple will never win. Period.

paperclick




msg:3236783
 5:03 am on Jan 30, 2007 (gmt 0)

Correct me if I'm wrong, but can't most new cell phones be 'unlocked' so they can be used on any carrier?

Whenever I research a new cell phone to purchase, I go on eBay and there is always someone selling the one I'm looking for unlocked.

Any cell phone geeks that can verify or debunk that the same can be said of the iPhone?

tictoc




msg:3236785
 5:08 am on Jan 30, 2007 (gmt 0)

AT&T Wireless had the absolute worst rating of all carriers and did so badly that AT&T basically shut it down.

We do have a short term memory...but not that short...

AT&T Wireless was horrible. I think they are betting everyone will forget about Southwestern Bell Mobile and AT&T Wireless...

I also realize Cingular has a worse network compared to Sprint and Verizon. I was disappointed that Apple did not use Sprint's network instead of Cingular. Sprint is basically as good or better in some cities as Verizon.

I do think people will switch to Cingular. They will have to improve their network - especially improve their mobile broadband (which they are working on).

Another thing to keep in mind is the demographics of the Cingular network is younger with lots of the trend setters even though its a crap network.

macdave




msg:3236798
 5:43 am on Jan 30, 2007 (gmt 0)

Verizon made the right choice here - Apple is a horrible company... they will not last... they cannot. Think of how much they spend on marketing and advertising. How many iPods you think they'll have to sell to pay for all that? What about their programmers, executives etc? Think about it... Apple will never win. Period.

Actually, Apple is quite profitable. Apple stock has outperformed the S&P 500 by more than 600% over the last five years and the company has amassed cash reserves somewhere in the neighborhood of $9 billion. You may not like their strategy, but they certainly have no problems making money.

born2drv




msg:3236848
 7:32 am on Jan 30, 2007 (gmt 0)

Not sure about the east coast but here on the west coast I think it went something like this.... AT&T wireless had very good state of the art digital towers but were spread kind of thin, Cingular just sucked at the time. When AT&T broke up, all those towers were sold to Cingular and SBC bought out AT&T for the land line, etc business and they adapted the new AT&T name and dropped "SBC".

Ever since Cingular bought those towers and combined it with what they had, it has been one of the best in the LA area. All my family uses Cingular now, I've tried everything from Verizon, T-Mobile, etc, the best reception comes from Cingular based on my experience.

Now the "new" AT&T has merged or purchased Cingular (not sure which?) and will be dropping the Cingular name. That's really stupid I think. Oh well. At least they got the iphone thing right. I think it will be Verizon's undoing. People switch cell phone carriers like they change shoes, loyalty is very thin. Verizon already shot itself in the mp3-foot by locking phones to prevent people from copying music from their computers and forcing them to download through their stupid crippled phones. I think it will come back to haunt them. The only company that has been able to successfully control a paid music media format so far has been apple and being able to copy paid media from computer to phone is what it's all about.

bcolflesh




msg:3237163
 2:15 pm on Jan 30, 2007 (gmt 0)

Verizon already shot itself in the mp3-foot by locking phones to prevent people from copying music from their computers and forcing them to download through their stupid crippled phones.

Huh? I'm not aware of any contemporary phone that Verizon will enable that you can't buy a $2 cable off the internet and connect it to any device you'd like.

kapow




msg:3237165
 2:32 pm on Jan 30, 2007 (gmt 0)

Let's face it, would you switch carriers just to get a cool phone?
YES!

The mobile phone industry in teetering on the edge of revolutionary changes. Some time soon (I'm getting tired of waiting) phones will be pocket computers, phones, the web, sat nav... There are lots of attempts at this but you have to pay a lot for them. The first company to provide it all, with freedom to adapt it your way, at a low cost, and with style will own the next chapter in technology business - IMO!

Is the iPhone this? I don't know, but Apple have a great track record and I'm seriously thinking of buying shares.

whoisgregg




msg:3237253
 3:46 pm on Jan 30, 2007 (gmt 0)

Apple is a horrible company... they will not last... they cannot.

Been hearing this since around 1985. It was a curious idea then, but I'm afraid it's firmly in the "Troll Cliche Handbook" at this point.

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