Stupid Quote of the Year Alert
It was bad enough that ,when given the first opportunity to be the exclusive carrier for Apple’s new iPhone, Verizon turned it down. Now, Verizon’s President and COO Denny Strigl has gone on record as saying,
“The iPhone product is something we are happy we aren’t the first to market with.”
Yeah, that makes a lot of sense. Wouldn’t want to be first to market with what will be the hottest product of 2007, now would we? The back story, according to The Register, is as follows:
The problem seems to have been Apple’s insistence in sharing the call revenue as well as controlling distribution channels and customer service.
Verizon vice president Jim Gerace (one of many veeps at the company) said: “We said no. We have nothing bad to say about the Apple iPhone. We just couldn’t reach a deal that was mutually beneficial.”
We can only assume that Cingular did agree to such a deal, and guess to what heights that will drive the cost of the two year contract it is demanding from iPhone purchasers.
Cingular said it inked the deal with Apple more than two years ago, when the iPhone was no more than a couple of sketches and concepts; such was its belief in the Apple brand and abilities.
It never ceases to amaze me how shortsighted companies can be and Verizon appears to be shining example. They are a victim of their Orthodoxies. Cingular, on the other hand apparently saw opportunities in doing business Apple’s way. Apple has mastered the art of delivering a great Customer Experience; from the user interface on the device, to the human interaction in their stores. Cingular knows that customers are going to want this thing and sees opportunity in increasing their subscriber base even if Apple gets most of the ROI on the phone. Cingular has been good at Sensing what the next hot device will be and Responding by getting exclusive access to it early in the product cycle when the highest margins can be demanded. They did it with the Motorola RAZR (Verizon was the last major US carrier to get it) and the iPhone looks to be an encore performance.