iPhone Mobile Carrier Details Revealed
It was reported today that Apple initially approached Verizon Wireless to be the mobile carrier for the iPhone. Despite the iPhone’s incredible hype, Verizon deserted the deal due to Apple’s inflexible terms.
The report which appeared in American daily USA Today, featured these deal terms:
• Apple wanted “a percentage of the monthly cellphone fees” – reported to be 1%
• Apple wanted to dictate how and where iPhones could be sold – limited distribution to Apple and Verizon stores only
• Apple wanted to control the relationship with iPhone customers
• Apple wanted “sole discretion over whether to replace or repair the phone” if there was a problem
The other interesting tidbit was that Cingular’s exclusive deal with Apple is for five years, which is contrary to previous reports that the contract was only through 2008.
