Sunday, July 1, 2007

Why Verizon Rejected the iPhone

Most realize Verizon had the first shot at the iPhone and many have been scratching their heads (Why didn't Verizon take it?) since the January Macworld iPhone announcement. The Register has an interesting post here. The piece quotes Verizon Communications president and chief operating officer Denny Strigl as follows:

"The iPhone product is something we are happy we aren't the first to market with."

It looks like the deal killers for Verizon were Apple's demands for call revenue sharing, the control of distribution channels and also customer service. The Register also quotes another Verizon vice president, Jim Gerace:

"We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach
a deal that was mutually beneficial."

According the The Register - Cingular claims this deal was cut two years ago when the iPhone was just a mock-up.

I'm going to stick my neck out and predict an announcement soon by Microsoft and Verizon......


Mark Viquesney said...

Here is an article from the NY Times about what other companies stratigies are regarding the iPhone. They are more worried that Apple may change the market on cell phones as they did for MP3 players and are content to be followers than leaders.

As for me buying an iPhone - not going to happen. Despite loving tech gadgets, I have no desire to surf the Internet anytime or anywhere. Or watch movies on my phone. Part of it is where I live. We have a very poor mass transportation system and so driving and watching a movie, or surfing on the Internet, is not a good idea. But the main reason,I cannot justify spending that much money on a phone for features I will not use.

Gordon F Snyder Jr said...

Thanks Mark! Mike Q has bought one and we'll be doing a podcast this afternoon on the device.