Apple May Reject Verizon for iPhone 4G Over Android

Written by: Gundeep Hora on 5/29/10  |  Filed Under Apple  |  Share    

There’s evidence to suggest that Apple may not introduce the iPhone 4G for Verizon on June 7 at its WWDC event, we reported earlier today. However, one strong reason for that is Steve Jobs’ attitude towards Verizon. Jobs doesn’t forget his foes, and Verizon fits the bill perfectly. There are three reasons why Apple may not want to partner with Verizon at all:

  1. Verizon snubbed Jobs and Co. when the company came to Verizon to introduce the original iPhone in 2007.
  2. Verizon went on the offensive with “iDon’t, Droid Does” ad campaign where it slammed the weaknesses of the iPhone, which couldn’t have made Jobs delighted.
  3. This is a big one. Verizon has made it clear that it’s behind Google’s Android mobile OS to take on Apple and the iPhone. The words “Google” and “Android” are not the ones you want to be saying around Jobs and Big Red is guilty of this mistake.

Historically, we know Jobs is insane enough to make others bow infront of him and his creations. He’s not the one to saturate himself to high demand. If consumers want his devices badly enough, they will work within the Apple system to get one. Jobs takes his rivalries to the next level and runs Apple like his company with no worry about revenues, it appears. He has gone after Microsoft, Adobe and Google, to name just a few, to make a point, and Verizon is most likely on his hit list. Knowing him, he will likely make the carrier beg him to let them carry the iPhone, and that’s never a good sign in negotiations. That’s assuming he “honors” Verizon with the iPhone at all.

What do you think? Has Verizon annoyed Apple and Jobs enough to not get the device anytime soon? Will Jobs get his revenge? Sound off in the comments below.

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  • David
    I am on my knees, hands cupped together, looking up to Steve Jobs. "Please, please, make a deal with Verizon for the iPhone 4G."
  • 4geo
    When I see the Apple iPad on Verizon, then I might believe there may be the Verizon iPhone. If anything would seem logical to arrive on the Verizon network first, it would be the Apple iPad. AT&T has not once indicated exclusivity to the iPad, so I don't believe there is exclusivity prohibiting a Verizon data interface. It would be the easiest product to bring to market on the existing CDMA network, with the most minimal investment by Apple to produce and support.
  • I like this thought. Makes sense. Good observation.
  • 4geo
    I don't think enough, or any that I can locate, has been written about the iPad on Verizon. It's all about the iPhone, and has been the mantra since 2007. iPhone exclusivity is not part of the iPad equation. I see not one analyst, not one pundit, not one blogger, nor any consumer side driven articles about iPad on Verizon, since the iPad announcement. If there is conversation with Verizon about it, perhaps it is they can't or don't wish to respond to the AT&Tpricing model, especially since they know that they can't win on data speed alone, except where AT&T has only EDGE, and Verizon (and/or Sprint) has 3G speeds.

    P.S. If you really like, then please hit me with a "Like" vote. Trying to build up my street credibility!
  • davesmall
    Stop it with the nonsense. Apple has made really great business decisions. All parts of their business are really rolling now. Verizon made one of the worst business decisions in world history when they turned down a shot at the original iPhone. AT&T owes Verizon big time for doing them such a big favor.

    Steve Jobs is not crazy but he is protective. He knows there the horde of competitors (Microsoft, Google, Dell, HTC, Motorola, HP, etc) are always anxious to get their hands on Apple's next innovation so they can tear it down, reverse engineer it, and try to copy it. That's what they do. Seems like that's all they do.
  • I wouldn't say Apple needs to particularly worry about that. The iPhone's been out since 2007, and the UI on a lot of other mobile devices still can't match the one on the iPhone. It's not about the hardware or software for Apple, which anyone can copy, it's about the details in their products and the overall user experience. That's what gets them winning.
  • JoJo
    Fanboy ahoy. Don't you think it is a little loony to believe that Apple creates all the innovation for a whole sector and that there are legions of competitors who do nothing but copy and reverse engineer? Maybe just a little?

    Apple have made a lot of very stupid bisness desisions in the past which have cost them dearly. The dominance of Microsoft Windows is testament to that. There are a heap of other Apple products which have also not enjoyed the phenomenal success of the iPhone:
    http://www.newlaunches.com/arc...
    http://www.applegazette.com/ma...

    In this case the the question is rather simple. Have Apple shot themsleves in the foot by signing an exclusive deal with AT&T? To most observers it would seem so as they have severly limiting the market for the iPhone at a time when they need to be selling as many units as they can to keep ahead of the competition. In time, Apple's decision to go with an exclusive carrier may come to be seen as one of their worst business decisions.
  • I won't say Apple should be credited for innovation. There's nothing particularly unique about their hardware or software per se. It's their integration of the two that takes them to the top. They are amazing at fine-tuning details. That's where they really shine.

    Apple's definition of success is not measured by market share, but in profit margins. They have successfully held the highest margins in nearly all of their product lines, which is saying something. Would you rather sell 1 laptop and make $500 on it, or 10 laptops and make $500 on it? Sure, by selling 10, you may get more market share, but it's not translating that well to revenue. ;)

    If you call signing exclusively with AT&T a terrible decision, Apple may not perceive it to be that way. Apple is the first mobile devices company that's doing a revenue sharing deal per iPhone sold with a carrier. No one has been able to get a carrier to do a deal similar to that. On the revenue front, Apple is doing great.
  • William G.
    its easy to make 500 on a laptop when you charge over a grand more than its worth performance-wise

    Apple's achilles heel is open-source, essentially the antithesis of their business model, which is to tightly regulate and control a product so that everyone gets exactly the product Jobs wants them to. Basically, he with his God-complex, thinks that everyone is dumber than him and cant possibly produce anything better, thus his famously-egocentric product presentations. Google, whose developers are the best there is right now, seriously try and argue that one, I dare you, is about to demonstrate that his fantasy is oh-so-wrong
  • Wodster
    The word that I heard is that Apple and AT&T have a contract until 2012, and if that is true, this discussion is pointless
  • We reported on it here: http://www.cooltechzone.com/20...
  • kevin
    Well, like it or not but Apple needs Verizon more than Verizon needs Apple. Verizon isn't hurting for money and are pretty happy with Android. Apple however does need Verizon millions of customers if they have any hope of competing against Android in the long term. Android is a very good competitor to the iPhone. Verizon certainly is not going to bow to Apple or even try to beg them for the Iphone. If that's what Apple wants,well it isn't going to happen.
  • You never know. Apple is one of the rare companies that can make outrageous demand and get away with it. I wouldn't say Verizon doesn't need Apple. Both companies need each other to generate higher revenue. Which is fine.
  • monkey licker
    since when??? Apple was almost destroyed as a company when it tried a similar stunt at the begining of the PC age, refusing to give up the hardware component of their product to third-party companies, unlike microsoft, and as a result was a laughingstock for over a decade.

    and what part of 93 million subscribers doesn't scream "we dont need Apple!!!"?? (even 3 years after the arrival of the glorious iPhone) People forget that Blackberry still OWNS the smartphone market, and now that android is out, iphone would need a dramatic jump ahead to become as powerful a player as all you fanboys like to pretend it is. And sorry, but the iphone 4 isnt even more advanced than sprints HTC Evo (an android phone)
  • bravinash
    No company should ever bow to Apple and especially not to Steve Jobs. The are several other technology companies that have great innovation to make it to the masses also create a win win situation for everybody involved. I am sorry, but that's no way to treat other companies and other people. If he and his company want to be that way so be it, but nobody I mean nobody should take his crap not for what does.
  • You're right, but it has served Jobs and Apple right so far. There's really no reason for them to change the way they work.
  • Rufius
    That's correct....If Steve Jobs decides to play this stupid game, he will lose. Big Red is NOT afraid of Apple. That's why VZ has the Droid (Android OS) and has more loyal customers that will stay. i will tell you this, i would love to have the iphone, but if it doesnt come to VZ then droid it is and i'm not alone. Be careful Steve, you might lose on this one with your arrogance, if you want to be on top you need to think before you jump...........
  • In Jobs' mind, Verizon is the one losing out on the iPhone. You can see how Verizon has switched their tune from laughing at Apple in 2007 for demanding so much over a mobile device to launching ad campaigns that boast their network prowess - all these are signs of Verizon showing heavy interest in the iPhone.
  • Charlie Chestnut
    But what you fail to acknowledge is that Verizon got what it wanted... a smartphone platform (which I argue is better than a single phone because it allows different phones to be marketed with the same platform at varying prices and with varying capabilities) that is comparable to an iphone and it doesnt have to sacrifice its entire business model to do it.

    and Last I checked, the iphone has been loosing marketshare to the Android smartphones, which are ideal for a battle with apple because their Google roots and open-source philosophy represent everything that Apple isn't.
  • Joe
    If Jobs is really that insane, then he might reconsider the Verizon deal. I know several people that had an iPhone, but because of the crappy service and minute amount of cellular towers, they switched to Verizon. Many people these days are switching to Verizon for the Droid, and for the service. By switching to Verizon, they really aren't losing anything. Because of all this, Jobs might consider trying to forget about what Verizon did, and go with them because of the popularity. Even knowing Verizon basically screwed Jobs and all of Apple over before, it still would be a wise to discuss this with Verizon. I am sure they could work out something. :P
  • That's the point. Jobs doesn't care if users are leaving in masse because they are tired of the AT&T service. He wants things to go his way, and he has always managed to pull it off. You're right. They aren't losing anything. If anything, they get to sell the iPhone to Verizon's 93 million subscribers, which means a ridiculous amount of revenue for Apple, but Jobs must attack his rivals and crush their business. He seems to get some sort of a pleasure out of doing this.
  • Joe
    I really never thought of it that way, but I guess your right. He is so insane that he doesn't even know how to make a good decision. And yeah he probably does get some sort of strange thrill out of trying to crush other businesses. LOL. Anyway, I hope he does get enough sense to go with Verizon. I'm a pretty dedicated Verizon user, but I would love to own an iPhone!
  • There's a reason why people say he's living in distorted reality. The man can bend reality to suit his personal biases. Not a lot of people can pull that off successfully. ;)
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