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.