Verizon REJECTED iPhone Deal

verizon_logo.jpgLet the speculation about why Apple chose Cingular cease and desist…we have the answer.  USA Today reports that Verizon rejected an iPhone deal from Apple because of Apple’s financial terms and other demands.  For Verizon to sell the iPhone Apple wanted (among other things) a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers.

A Verizon wireless vice-president, Jim Gerace, had this to say, “We said no. We have nothing bad to say about the Apple iPhone. We just couldn’t reach a deal that was mutually beneficial.”

Apple wanted to handle all customer-care for the iPhone hardware, and decide when to replace or repair a device a customer was having a problem with.  “They 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 says.

With cellphone companies in this country (the US) keeping us from getting the coolest and most innovative phones for years, I think it’s a good thing that Apple refused to relinquish everything to Verizon.  If the iPhone is as successful as it appears it’s going to be, this could open the doors for other cell phone manufacturers to put their foot down, and demand a better deal.

link via Mac Rumors

Apple Gazette Team
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