Verizon passed on exclusive iPhone deal | iLounge News


Verizon passed on exclusive iPhone deal

Verizon Wireless rejected Apple’s offer to be the exclusive distributor of the iPhone almost two years ago due to Apple’s demands. According to Jim Gerace, a Verizon Wireless vice president, Apple wanted a percentage of the monthly service fees, say over where the iPhone could be sold, and control of iPhone customers. “We said no. We have nothing bad to say about the Apple iPhone,” Gerace said. “We just couldn’t reach a deal that was mutually beneficial.”

The Verizon executive said only Apple Stores and Verizon stores would have sold the iPhone, much like the current deal with AT&T/Cingular. But Gerace said that would have put Verizon’s distribution partners, such as Wal-Mart and Best Buy, at a disadvantage. Gerace also said that Apple wanted sole discretion over whether to replace or repair a malfunctioning iPhone. “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 said.

Related Stories



I for one am glad that Apple didn’t end up with Verizon.  They are so restrictive on a phones features that I am not surprised that they could not reach a deal with Apple.  Why, the open WiFi and Bluetooth 2.0 alone must have made Verizon s**t their pants (of course I know that there are other “smart” phones with WiFi too, but Verizon can castrate them if they so please).

Verizon, on the iPhone:  “What?  You can get online without our help?  Next thing you know, you’ll be saying you can do whatever you want with your phone that you paid through the nose for!” 

Good riddance.  Cingular was smart to take the deal.  I wouldn’t think of buying it from Verizon, so good for Apple too.

Posted by neuteredphone on January 29, 2007 at 10:17 AM (CST)


Smart move Verizon! People would much rather have to deal with a wireless provider’s service department over Apple’s lousy support center. We all know how high Verizon ranks against Apple in terms of service and support anyways. Verizon would clearly have the best knowledge of the ins and outs of an iPhone, even more so then Apple, because they have to know it and the other 50 or so handsets they are required to support at any given time.

Was that enough sarcasm or should I go on…

Posted by miketcool on January 29, 2007 at 10:24 AM (CST)


Just my 2 cents but,
regarding *control*
I’ve used Verizon because that’s what my family has.
I asked at a Verizon store about the Bluetooth data transmission on my phone because I have a Mac with Bluetooth and a phone that I knew technically supports the data transmission.  I was told, with a straight face, that they didn’t support it because they can’t charge for the transmission of data like that.
Wow, I’m all about having a profitable business, but disabling features like that…

Posted by Jeremy on January 29, 2007 at 10:40 AM (CST)


I actually think this is what is wrong with wireless carriers today.  They are too involved in the handset side of things, and that’s why cost is still extremely high.  It wasn’t too long ago that land line’s required you to get your phone from them, and they charged you for the handset use.

The carriers need to let manufacturers sell handsets directly to consumers and bypass carriers.  This would let carriers deal with service and not worry about hardware.  This would also give us more choices and let us pick and choose which devices to choose.

I think that Apple demanding part of the service is wrong, but I think Apple should have a say in how/when/where their handsets are sold.  I think it’s good for both Verizon and Apple to stand by what they say, but I think that carriers need to wake up and separate the handsets and the service.

Posted by Michael on January 29, 2007 at 11:23 AM (CST)


Verizon allows its customers to get warranty replacement phones through their corporate stores, while Cingular requires exchange by mail. 

In addition, Cingular has some of the worst support in the industry… and they are only open on weekdays.  It is a good thing that Apple will be supporting the iPhone themselves, otherwise they would have quite a few unhappy customers.

Posted by Stephen on January 29, 2007 at 12:03 PM (CST)


This might just be a blessing for Apple, not to be associated with Verizon! I can only imagine how badly they could botch the whole iPhone user experience. What a helluva time I had with them when I moved to a new apartment, just getting them to switch my landline and DSL over!!! Their customer service is a joke.

Posted by Laer on January 29, 2007 at 12:22 PM (CST)



Where the hell do you live that you only have Cingular stores open on the weekend, BFE?!?

I have never had a problem with Cingular service.  I switched from Verizon BECAUSE of the fact that Verizon service sucked a**.

I think that this just serves to show that everyone’s service experiences vary by where they are and the actually person/people they deal with at their particular locations.

In the end, Verizon would have been a horrific choice, but that is a moot point since they passed, and now we have a carrier that won’t kill the cool features of the iphone in favor of their limp little pay services.

Posted by neuteredphone on January 29, 2007 at 12:23 PM (CST)


edit to last post:

Meant to say “weekdays” instead of “weekends” in the first line.

Sorry, carry on crying about your feelings on Apple’s superior choice in Cingular.

Posted by neuteredphone on January 29, 2007 at 12:26 PM (CST)


Verizon doesn’t need the iPhone….lets be honest. They have the Treos, The Q (Now in Black), and that nifty slider Pocket PC.

I still don’t know exactly what market APPLE is going with the iPhone….as it doesn’t do anything that any Pocket PC didn’t do like….4 years ago.

I do expect a repeat of the infamous style conscious techno-idiots that iPods initially appealed to…..(i.e. that girl who got the iPod…yet had no MP3s…and 4 years later had 100 files).

Imagine if you will…..Paris Hilton with an iPhone. UGH.

Posted by GoonieGooGoo on January 29, 2007 at 2:52 PM (CST)


GoonieGooGoo, it would appear that you haven’t used a Pocket PC. The market Apple is going for is the market that wants a phone. My PPC-6700 is a decent communication device, probably better for text messaging than any other phone I’ve used. WM5, the OS, is marginal. As an MP3 player, this would be comical, as it will cost several hundred $$ to add enough capacity (via miniSD cards) to hold any decent amount of music. I would be better off to buy a new iPod to carry with my phone.

Unfortunately, that’s just part of the issues I have with the 6700. It’s pretty lousy as a phone, so Apple won’t have to do very much to beat Pocket PC’s in that category. - Tim

Posted by TimTheFoolMan on January 29, 2007 at 3:14 PM (CST)


I am with Verizon (they bought out the original company so I have been using Verizon since) but when my contract is over I am gone.

I have a Moto V3C from Verizon which suffers from Verizon Crippleware. I refuse to use their service to send pictures, videos, or use the web. They nickle and dime you to death to use their service. VCast is a JOKE! And the fact that they use BREW and not Java is another pain in the rear end.

The one thing I have noticed that nobody talks about is why would Mac people buy this phone over what is already out there.

EASY - we know that this phone will work with Mac OS X.

All other phone support for OS X is terrible.

As for getting OBEX (object exchange) working again on your Verizon phone, do a search on the web. I was able to find the programs and instructions on getting most of the phone functionality back (do this at your own discretion, remember, this voids all warranties). I now can transfer data from my V3C and my iMac.

Now I am working on getting ring+vibe back onto the phone which Verizon disabled. I will never have Verizon flash my phone again.

I will buy an iPhone when the 3rd iteration comes out. I always wait for the bugs to be fixed before I buy anything.

Posted by lyd on January 29, 2007 at 3:56 PM (CST)


You are incorrect…I do use a PocketPC.

In fact I have a PocketPC that I still use to this day that was so far ahead of its time….the Toshiba e800….upgraded with Windows Mobile 2003 2nd edition

Just for comparison sake….I’ll compare the iPhone’s features to my good ole Toshiba:

Bluetooth - Check
Wi-Fi - Check
Websurfing (even better w/ 3rd party browser) - Check
Phone calls with Skype Mobile - Check
(granted I can’t use it everywhere)
Slingplayer Mobile - Check
Email - Check (w/ Outlook)
Instant Messaging - Check (with AOL IM/Yahoo Messenger/MSN Messenger)

USB Port and Video Out (w/ Adapter) - Check

Touchscreen & Keyboard - Check
Infrared Port (good for remote control software) - Check

Music Playback (via WMP & 3rd Party) - Check

Video Playback (via WMP & 3rd party) - Check

Music & File Storage - 8 GB CF Card = 90$/ 8GB SD Card = 65$
Battery Power - 5-7 DAYS use (w/ extended battery) - Check

I’m amazed at the lasting power of this stupid device. I’ve looked for something to upgrade it with….but nothing has come even close to its versatility.

Granted I am technically savy so have probably made this PDA do things it was never meant to do…..but you see my point.

Posted by GoonieGooGoo on January 29, 2007 at 4:32 PM (CST)


Then I have to hand it to you. Your phone is far beyond what mine is, and mine is less than a year in the marketplace. I would have to work very hard at not making phone calls to get more than one day’s use out of it.

The built-in version of IE is so pitiful… I’m reluctant to give this OS any credit for web browsing.

Sadly, I haven’t found any 8GB miniSD cards, much less for anything close to the prices you’ve quoted. Yes, I have a groovy keyboard that’s very easy to use, and big enough for real thumbs.

Some of my gripes appear to be provider-oriented. I lost PictureMail (can’t send pictures to other “picture phones”), can’t (without a hack) send SMS messages to e-mail accounts (like I could with the Sanyo 8500 that I dumped), and the cost of the EVDO connection is just ridiculous.

I will look into SlingPlayer, as you’re the second person to recommend it to me. WMP sucks completely out the… window, for video OR audio. - Tim

Posted by TimTheFoolMan on January 29, 2007 at 5:06 PM (CST)


I’m puzzled by some of these posts.

When I was last shopping for a carrier, I found that Verizon wasn’t the only one who knee-capped their phones, particularly when it comes to Bluetooth data connectivity. T-Mobile does the same. And ATT/Cingular/whatever they call themselves these days certainly did when I was with them way back when.

Posted by flatline response on January 31, 2007 at 11:06 AM (CST)

Subscribe to iLounge Weekly

Sign up for the iLounge Weekly Newsletter

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2018 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy