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Verizon Wireless CEO: Happy without iPhone
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While competitor AT&T is celebrating the success of its exclusive Apple iPhone deal, Verizon Wireless CEO Lowell McAdam says he does not have any regrets about passing on the device.
In an interview yesterday with FierceWireless, McAdam said that Verizon carefully evaluated the iPhone opportunity but found both the business model and the distribution model unsatisfactory. Specifically, McAdam said that Verizon didn't like what he considers "restricted" distribution, meaning that Apple had asked that Verizon not to service iPhone customers. "We have put a huge investment into training our people," McAdams says. "The model was to say 'thanks for coming in' and then point them down the street to Apple."
He also discounted the iPhone technology, which many have praised for its simple and intuitive user interface. "The technology--that stuff could have been dealt with," he said.
But most of all, Verizon had difficulty with Apple's financial demands. "We made a $40 billion investment in our network in the last eight years. I don't think that kind of revenue split was commensurate with the investment that we have in the network. We are happy with the decision." -Sue
Comments
Posted by John Purcell | October 24, 2007 - 2:10pm
IN the article, you say that, "....Apple had asked that Verizon not service iPhone customers." Can you explain what, in your opinion, Apple objected to and what they mean by "service"?
Posted by Anonymous | October 24, 2007 - 2:20pm
I find this hilarious! Each time a Verizon Wireless exec has to be trotted out to say that Verizon made the right decision by passing on the iPhone deal is just more of an indication to me that it wasn't....
If the iPhone is such a non-event, and has had no impact on Verizon, then why do they keep feeling the need to come out and explain themselves?
After all, a $400 smartphone was AT&T's best selling handset and was fourth best selling in the USA according to Strategy Analytics....
Gee, I wonder what Verizon's best 'selling' phone was... some nondescript, give-away clamshell?
Posted by Marc | October 24, 2007 - 2:35pm
Let's see...the battery on my Verizon Palm 650 is almost dead...I am weighing the iPhone and the new Cingular Palm phone...what is Verizon going to be doing for me to help me make this decision...I guess just more of their same old crap!
Posted by Anonymous | October 25, 2007 - 5:14am
Verizon need to think more!!! Geee... I really started to hate Verizon even more.
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