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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."
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!)
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).
although AT&T is dropping the Cingular brand name in a convulsion of corporate stupidity
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.
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.
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).
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.
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?
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.
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.
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.
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.
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.