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Pirate515
Premium
join:2001-01-22
Brooklyn, NY

reply to chemaupr

Re: I Can Only Hope

said by chemaupr:

Is hard to invest more when you have to pony up so much money for to Apple in hardware and plan fees... Which is the reason VZ first declined the iPhone
While I could be wrong as no one really knows why negotiations between Apple and VZ broke down, but the rumor has it that the main reason was because VZ wanted rights to cripple customize iPhones any way they see fit before selling them to customers as they do with most if not all of their other phones. As most of you know, Apple likes having full control of their hardware and software, so allowing this was a big no-no for Steve Jobs. Then Apple went to AT&T, who has agreed to sell it as is with no customizations of their own, and struck a deal.

Also, Apple had plans to sell the iPhone internationally, and given that Europe, which is mostly GSM and a huge market for Apple as well, it was a no brainer to make the iPhone a GSM handset and then to go with AT&T, which is one of the GSM carriers here in the US.
--
Ask me no questions, and I'll tell you no lies...
A MESSAGE to the RIAA and the MPAA: You shouldn't wound what you can't kill...

dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

How much more could Verizon cripple the iPhone than Apple has already? Disable the phone from ringing?

The way I read it, Apple wouldn't allow 3rd party resellers (like Best Buy) from selling the iPhone, and that was a deal killer for Verizon. Apple supposedly wanted a cut of subscription fees too.



skuv

@rr.com

reply to dynodb

Re: I Can Only Hope

Apple wouldn't allow 3rd parties to sell the iPhone?

Best Buy and Wal-Mart sell iPhones, so I don't see how that could have been part of the reason Verizon didn't want the iPhone.


Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

said by skuv :

Apple wouldn't allow 3rd parties to sell the iPhone?

Best Buy and Wal-Mart sell iPhones, so I don't see how that could have been part of the reason Verizon didn't want the iPhone.
They wouldn't at first. My local ILEC resells AT&T service and they weren't allowed to sell the iPhone for well over a year after the 3G release.
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Pirate515
Premium
join:2001-01-22
Brooklyn, NY

said by Matt:

They wouldn't at first. My local ILEC resells AT&T service and they weren't allowed to sell the iPhone for well over a year after the 3G release.
Apple and AT&T actually changed the purchasing process when iPhone 3G came out. With the original one, customers paid full retail price for it, activated online, and AT&T paid Apple a certain amount of money per month for every account with iPhone on it. Since 3G one came out, AT&T buys it at full price from Apple, sells it to customers at subsidized price (provided that they are eligible) and charges ETF to those who jump ship early.

I guess since now Apple gets paid for every iPhone upfront, they have allowed other stores such as Best Buy, Walmart and soon Radio Shack to sell them as well. With the previous arrangement, keeping track of all these other channels would have been hell for Apple.
--
Ask me no questions, and I'll tell you no lies...
A MESSAGE to the RIAA and the MPAA: You shouldn't wound what you can't kill...


sdialect

join:2000-10-02
Jacksonville, FL

reply to Pirate515
Amen!!! VZ is notorious for crippling their phones with prop. software. When Moto RAZR was the hot thing, Motorola Phone Tools was useless on the VZ units out the box.
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Life goes on...


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