“During a visit to Las Vegas last December for a rodeo event, Cingular Wireless chief executive Stan Sigman received a welcome guest: Steve Jobs,” Amol Sharma, Nick Wingfield, and Li Yuan report for The Wall Street Journal. “The Apple Inc. chief stopped by Mr. Sigman’s Four Seasons hotel suite to show off the iPhone, a sleek cellphone designed to surf the Web and double as an iPod music player.”
“The phone had been in development by Apple and Cingular for two years and was weeks away from being revealed to the world. And yet this was the first time Mr. Sigman got to see it. For three hours, Mr. Jobs played with the device, with its touch-screen that allows users to view contacts, dial numbers and flip through photos with the swipe of a finger. Mr. Sigman looked on in awe, according to a person familiar with the meeting,” Sharma, Wingfield, and Yuan report.
Sharma, Wingfield, and Yuan report, “Only three executives at the carrier, which is now the wireless unit of AT&T Inc., got to see the iPhone before it was announced. Cingular agreed to leave its brand off the body of the phone. Upsetting some Cingular insiders, it also abandoned its usual insistence that phone makers carry its software for Web surfing, ringtones and other services. The deal also calls for Cingular to share with Apple a portion of the monthly revenues from subscribers, a person familiar with the matter says.”
“Mr. Jobs once referred to telecom operators as ‘orifices’ that other companies, including phone makers, must go through to reach consumers. While meeting with Cingular and other wireless operators he often reminded them of his view, dismissing them as commodities and telling them that they would never understand the Web and entertainment industry the way Apple did, a person familiar with the talks says,” Sharma, Wingfield, and Yuan report.
Sharma, Wingfield, and Yuan report, “Mr. Jobs flirted with other titans of the wireless industry but not everyone wanted to play ball. Talks with Verizon Wireless fell through. Mr. Sigman and other top Cingular executives were willing to cede control to Mr. Jobs and tolerate his digs at cellphone carriers, all for the privilege of being the exclusive U.S. provider of one of the most highly anticipated consumer electronics devices in years — and to deny rivals a chance to do the same, according to people with knowledge of the situation.”
Much, much more in the full article here.
[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]
Cingular’s Sigman sounds like a very smart man.
Related articles:
How Verizon blew the Apple iPhone deal – January 29, 2007
RUMOR: Apple iPhone 4GB for $299, 8GB for $399 with 2-year AT&T contract? – February 16, 2007
Telstra exec tells Apple to ‘stick to its knitting’ as iPhone looms – February 15, 2007
Digit takes a closer look at Apple’s iPhone – February 14, 2007
Microsoft caught off-guard, beaten badly by Apple’s iPhone innovations – February 13, 2007
Palm CEO: ‘We don’t want to follow design fads’; Nokia CEO challenges Apple over iPhone – February 13, 2007
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Sigman let the first brick in the wall fall down. The cell phone monopoly is going to go away. No ringtones (has to be the stupidest thing ever). Cell companies are going to have to focus on call quality, and wireless internet speeds. That is what they should be doing aways. Ringtones, NFL on a phone, Music videos. Lame. Niche markets. If you can provide people with great call quality, fast internet, cool cell phones, and competitive prices, that is all that we want.
Oh, and no TWO YEAR contracts. If your service sucks, I will, and should be able to, change it.
Telecoms are definitely rectal orifices.
It doesn’t take a rocket scientist to see that:
1) The iPod is by far the best selling digital jukebox on the planet.
2) Among many other things, the iPhone is an iPod.
3) There is no need for a (3) – they had you at (2).
Here’s an interesting pair of questions: Is Sigman a registered Mac user, and did Jobs know it?
Verizon is a very stupid carrier and they will regret missing this oppotunity for years to come. This little device will dwarf the iPod and become a B school case study.
I hope Steve Jobs does the same with the ‘orifices’ here in Europe.
If the initial sales in the U.S. are as good as they promise to be, then he’ll have even more leverage with the European ‘orifices’.
I PHONE BITCH!
Death to Conventional Thinking!
MW: order.
How about we wait and see if the iphone can live up to the hype before we declare it the device of all time. It will not put a big hurt on other carriers until there are less expensive versions. Most people will not buy it at the current price. Most people with cell phones get the cheapest phone they can get.
I’m interested in the battery life. Not just how long will the thing last on a charge (talking, surfing and music) but how many charges will it take until there is a noticeable decrease in battery performance? Will the battery be user changeable or will we have to send it off to get a new battery? A cell phone goes through an awful lot of charge cycles especially one like the iphone that will be in use for far greater hours then the normal cell phone would be. I’d hate to buy a phone that turns out to be basically a disposable item after just one year because the failing battery costs too much to have replaced.
I know that the battery life on my ipods have not held up that well.
Can anyone supply the date of the piece I’d like to read it at my local library. TIA
Capitalism has always had one goal, create a monopoly and screw the customer–he is only prey. Look at MicroSoft. Their ambition was to create a software monopoly and take advantage of the customer. The wireless industry is the same. Create a monopoly and to hell with the real needs of the cell user. Apple is the only company of which I know that is truly anti-Capitalist. They do a Vulcan mindlink with the user and provide them with what they need. In an Apple world, devices are born because they are needed; while their design and ease of use harmonize with elegance and simplicity.
@ Ardie
Your view that “Capitalism has always had one goal, create a monopoly and screw the customer…” is as wrong as wrong can be. The key to government is that they have a monopoly on the use of force. The key to capitalism is that for seller’s to prosper they must – often despite themselves (Adam Smith’s invisible hand) provide a higher quality product than their compeitors. There are no “capitaistic monopolies”. Monolithic companies that once seemed invulnerable fall all the time due to market pressue. The only true monopolies are those that are sustained by government edicts.
WTF Ardie? Did you just escape from Pyongyang or something?
Apple capitalizes THROUGH bringing the customer what they need
before they even know that they need it.
Just like Jobs said, the
problem with MS is not the success, it’s that they make third rate
products. Apple is not anti-capitalist and if they were, I’m sure the
shareholders would like to know about it. Don’t be such a freakin’ socialist.
Hmmm, did Stevie know in advance about the AT&T buyout of Cingular?
Bet he did.
Lining up the dominos for the takeover of the world and the crushing of the M$ domination.
Ha Ha, Verizon didn’t get the iPhone…Can You Here Me Now!! Ha Ha
Jobs drives a hard bargain, so what? He probably earns respect for his no-nonsense attitude and far-thinking perspectives. Jobs et al have a vision and a determination to see that vision become a reality. Apple is not going to join forces with others who don’t share Apple’s commitment and dedication to excellence and originality.
Compare this to Microsoft lately, which is nervously repeating excuses for Vista shortcomings. In addition, Gates has shamelessly promulgated lies that many of Vista’s features are unique and extraordinary, although these same features have existed in OS X for years. Vienna (Vista’s replacement) is just another public relations ploy to conjure hope and optimism in the minds of frustrated and disenchanted Microsoft apologists. Let’s not forget that Zune has fallen off the radar with no apparent survivors and that Origami has long been declared dead and buried. Microsoft’s “innovations” are dismal failures and its flagship OS is imprisoned in the Sargasso Sea of hubris, ineptitude, and delusion.
LMAO.
“Mr. Jobs once referred to telecom operators as ‘orifices’ that other companies, including phone makers, must go through to reach consumers. While meeting with Cingular and other wireless operators he often reminded them of his view, dismissing them as commodities and telling them that they would never understand the Web and entertainment industry the way Apple did, a person familiar with the talks says.”
Is there any guy with a bigger, smoother, heavier pair of balls than Steve Jobs? Most guys would wilt when having to work with a partner they previously criticized. He not only stuck to his convictions, he smacked them around in the process.
“The deal also calls for Cingular to share with Apple a portion of the monthly revenues from subscribers, a person familiar with the matter says.”
Steve Jobs is some negotiator!
Ardi
You don’t get to town much, do you?
Cuba ain’t too far, give it a whirl.
MW:right, like Jed Clampitt used to say, “That boy ain’t right.”
Always remember this about Apple –
They, like any business, must make money to stay IN business. But, unlike most businesses, they aren’t IN business to MAKE money.
Apple, under Jobs, has always been about “Changing the World”.
Imagine if Gutenberg had ‘copyrighted’ the Printing Press and charged royalties to anyone who wanted to print a book? That is similar to Microsoft and most tech companies, and in the short time of our Modern Information Age, they’ve been able to get away with that tactic.
Computers and High Tech are still merely babies. Is a LOT left to decide, a LONG ways to go before this “Industry” hits full stride.
Place your bets.
BC Kelly
Tallahassee Fla
Verizon is like the publisher that declined JK Rowling’s Harry Potter novels.
I wonder which was the worse decision? Probably a close run thing..
The iPhone deal with Jobs probably played a part in AT&T acquiring Cingular.
I heard once that the PURPOSE of a business was to get customers. The goal was to make money. However, the latter does not happen without the former. Apple does a great job at both.
This reminds me of the quote by Nokia CEO, or some other turd peddler, about Apple sticking to their nitting. OMG the absolute idiotic gall! Who the fsck do those dumb sheets think they are? They are telling the company that since 1976 has driven almost every consumer computing technology that we take for granted today. Apple invented some of the stuff the cell phone companies have copied. Apple/NeXT makes the finest GUI/OS, not that it has no faults, available today. To be fair Linux is excellent. Personal computers are extremely complex. Microsoft can’t even write decent software for them. What makes Nokia think they have any talent whatsoever?? Nokia makes telephones!!! Motorola makes telephones. ETC. They are nothing. They are pooping their pants. As well they should be. Apple is about to destroy them like the turd peddlers they are. They don’t even understand what is happening. Remeber convergence? Apple will be the ONLY company with the ability to supply these technologies. 10 years from now we may not even reconginize what Apple Inc. Has become. Actually it’s a bit scary. NONE of these other companies seems to be able to see 2-3 years into the future.
Remember when Decca turned down being The Beatles’ American record label? Very similar to Verizon’s bonehead refusal with the iPhone.
Why, O Why not T-mobile. I think that there would be more business if they used the Top Carriers. Cingular ( AT&T ), T-Mobile, Verizon, Sprint. Hey , why should Apple care what carrier has the best coverage service, Apple will have better coverage in sales if they make it more widely available to the Top Services.
Yo – “me”
The bozo who openedtold Apple ot stick to its knitting was the operations manager for Telstra – the biggest pain in the a$$ telephone company on the planet – here in Australia. This is a company who is trying to position itself to be the iPhone supplier here in Oz. So they think that can out “badass” Steve Jobs by amking stupid comments about the iPhone. Why? They are the only carrier here in Oz who has EDGE technology. Pphhttt!
By the time the iPhone reaches Australia, the iPhone will have other technologies (faster, more pervasive, clearer signal, wider access) than Telstra can offer. OR they will sell it here like all the phones here – no locks – so I can pick my own carrier. AND no 2 year contracts.
As for hardball… I think it was a trade-off. I thnk that too many companies were concerned that the iPhone might cause a ripple in the force of other phone manufacturers and they didn’t want to kill the kickbacks. (What! You don’t hink there are any kickback? Doh!)
What do you think “revenue sharing” is.
Cingular – AT&T is best posiitoned to do the best job for Jobs.
MDN = opened