Details have emerged of the pre-launch manoeuvring over the
iPhone between
Apple and US
network provider
Verizon.
According to
reports
in USA
Today, Verizon was in negotiations two years ago to carry the phone but felt
unable to proceed because of demands made by Apple concerning how it was to be
marketed.
"We said no. We just could not reach a deal that was mutually beneficial,"
said Jim Gerace, a Verizon Wireless vice president.
"Apple would have been stepping in between us and our customers to the point
where we would have almost had to take a back seat on hardware and service
support."
Gerace revealed that Apple wanted a slice of all call charges for using the
phone, and refused to let Verizon subsidiaries stock the phone. It also wanted
control over any repairs carried out on the hardware.
Under the terms of the proposed deal only Verizon would have been able to
sell the phone, leaving
Wal-Mart,
Best Buy
and other Verizon distributors out in the cold.
Apple would also have handled all repairs and replacements of faulty or
broken hardware, which Verizon felt was unacceptable.
In the end
Cingular
got exclusive rights to the phone. No details on the contract have been
released, but Cingular is thought to have negotiated a five-year exclusive
contract.
Do you agree?
Have your say on this article