How Verizon turned down the iPhone
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Before the MacWorld conference and the iPhone disclosure, rumors said Apple could partner Cingular or Verizon. In fact, Apple asked Verizon but the No. 2 US cellphone carrier stepped asides due to 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 to USA Today.”
This would have brought two problems. First: While Apple and Verizon stores would have it, Wal-Mart, Best Buy and other Verizon distributors could have been left out. Second: Customer care. If an iPhone went haywire, Apple wanted sole discretion over whether to replace or repair the phone.
Did Cingular accept those conditions is another question. According to iSupply, Apple may have a very comfortable 50% margin on each iPhone sale.
Jan 29, 2007 | By Nuno
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