Verizon Implies Cingular's Giving Up Way Too Much To Carry The iPhone
from the hindsight-is-20/20 dept
The online debate about the iPhone certainly didn't subside with the device's long-awaited announcement. Rumors continue to swirl, but they've just shifted from what features the device will have to how much Cingular will pay users to buy it. Verizon Wireless has gotten in on the fun today, with one of its execs saying the company passed on the chance to carry the iPhone because of Apple's onerous financial demands -- including a cut of service revenues from iPhone users -- as well as its desire to control distribution and support. It's something of an odd statement, and its purpose seems twofold: first to unsettle Cingular a little bit with the implication that it's paying through the nose to be Apple's lackey, and second to offer some sort of explanation to investors about why it's not carrying the device. The real issue for Verizon seems to not just have been the money, but the control. To let a device manufacturer control sales and support, and essentially relegate the operator to nothing more than a bit pipe realizes the worst fears of many mobile operators, inevitable as it may be in the long run. The question hanging over Cingular now is whether or not the amount of money they're putting up to let Apple do this to them will pay off in the end.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Point of order...
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Area of specialty
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Re: Area of specialty
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iPhone is already a failure!
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Re: Point of order...
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okay
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This is why...
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@ Lawrence D'Oliveiro
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iphone? Can't wait!
:).
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iphone
A cell phone is a cell phone, the service you purchase in order to use that cell phone is not, and should not, be downgraded in any way. If a company goes for a product and puts up too much stakes in that product plus they downgrade their own business standards in order to carry the product, they ARE asking for the worst business financial disaster to happen. They get what they pay for.
Hopefully Alltel will not fall for this BS. I would rather not purchase that cellphone, and have Alltel keep their standards intact.
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Alltell
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Re: iphone
Motorola did the same thing with the Razr. Now look, everyone and their mother has a Razr. Even Sprint now carries it. Apple will slowly open it to other carriers as soon as they agree to the same terms as Cingular. If the iphone is as popular as the Razr, carriers will be busting down the doors at Apple to carry the phone.
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Re: iphone? Can't wait!
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Re: iphone? Can't wait!
I'll start with the comment about how you will buy anything in these people put on the market, despite bad reviews, or cost. You know what I want out of a phone? A good quality phone that has features that I need.
"Ooooh, the icons are so pretty" - You could just download icons and skins that would make your phone more customizable and "pretty". Of course though, you already knew that becuase you spent so much time researching your purchases.
You mentioned that the features are amazing, despite the amazing lack of features compared to other phones on the market.
On a final note, why would you switch contracts now? So you can pay full price on the iPhone? Companies will always charge you less on the phone when you sign a contract with them.
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Re: Re: iphone? Can't wait!
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Re:
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Random Thouught
how stupid could I be
a simpleton could see
that you're no good for me (Verizon)
but you're the only (phone) I (can) see (Movies and TV Shows on)
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Re: Re: iphone? Can't wait!
I stumbled upon this a few days ago. This is a link to an actual MacRumors forum thread from back in 2001 when the first-generation iPod was announced:
http://forums.macrumors.com/showthread.php?t=500
My favorite: "This isn't revoltionary! I still can't believe this! All this hype for something so ridiculous! Who cares about an MP3 player? I want something new! I want them to think differently! Why oh why would they do this?! It's so wrong! It's so stupid!"
Yeah, I'm so glad I didn't buy AAPL in 2001 when it was trading at around $9... They sure dropped the ball on this whole MP3 player thing!
:)
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Missing the point and the features
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agreed
I agree with you guys. the whineys above do sound like the same whineys that dissed the iPod in the beginning.
Yeah, it does seem to be missing that oh-so-important 3G - which most providers in the US don't provide anyway. Go back and look at the keynote - Steve said very clearly that it will in the future.
As for Exchange integration - what part of CONSUMER don't you understand? Exchange is for business, and this is NOT a business phone. It is intended for the high end consumer, not the business consumer.
As for the rest (voice dialing, etc.) wait a bit - this was just a first look, and Apple often reserves the details for later, just before the product is released. We've got until June, for Pete's sake!
If they release it in June without, for instance, voice dialing, then you've got every reason to gripe, and I'll be right next to you, too.
Go back and look at the CNBC interview Steve did that Tuesday afternoon. He clearly noted that he expects the price to come down after noting something about economies of scale. It'll clearly depend on how many of these things they sell. The more they sell, the lower they can drop the price over time. Again, look at the Razr, same deal.
I would note as well a quote on another site (sorry, don't remember which one) of a Cingular sales rep that told a journalist that from inquiries he's gotten about the iPhone, he could sell 100 a day easily.
And, yes, Apple often adds features to later models. First versions often aren't the best - they're just the teaser to open the market, something that can be easily dumped if it doesn't sell well. Look at the Cube. It was a beautifully crafted machine, but was too high in price for the lack of expandability, but contained new cooling techniques that were later incorporated into the iMac line after the Cube bombed.
I'll also say this: for every one of the whineys here and elsewhere I hear complaining about a lack of features, I hear just as many like Jennifer L. Eisenberger above saying that they'll be standing in line for theirs the morning it comes out. The same Cingular sales rep quoted above also noted that one man he talked to was going to buy one for everyone in his family, including his two teenage daughters. That is four at least!
Scoff if you like at those early adopters and the ones that will buy Apple products sight unseen, but they kept Apple afloat during the lean years, and others like them now are helping them expand their market share, and create new markets.
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Support?
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Knowing Verizon...
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like verizon can talk about restrictions
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Verizon'z a Joke
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