“Major sticking points in negotiations between Verizon and Apple have reportedly been the wireless carrier’s interest in allowing retail partners to sell the iPhone, and Verizon’s promotion of its V Cast digital video-on-demand store. Overnight, The Wall Street Journal filled in some of the holes in its story filed Wednesday afternoon, adding new details of a purported Verizon-compatible CDMA iPhone,” Sam Oliver reports for AppleInsider.
“The report also [alleged] that Apple and Verizon butted heads over a number of issues, including the wireless carrier’s V Cast digital video store,” Oliver reports. “‘Verizon, in those earlier discussions, balked at Apple’s requirement that Verizon not allow its retail partners to sell the phone, people familiar with the discussion said at the time,’ the report said. ‘Verizon also declined to give up its ability to sell content like music and videos through its proprietary service, these people said.”
Oliver reports, “The expanded report from Yukari Iwatani Kane and Ting-I Tsai also added that Apple will not create a dual-mode GSM and CDMA phone for Verizon’s network. Instead, the new Verizon-compatible phone will operate only on CDMA networks, based on a chip provided by Qualcomm.”
Read more in the full article here.
MacDailyNews Note: Please see related articles below.
To lower operating costs for physical facilities… VZW sets up relationships with communities to start stores to sell their phones and services. The stores are heavily branded as being Verizon, and the typical consumer might not even know that it is a second party store. This is unlike a kiosk, or a reseller like Walmart or Radio Shack that sells VZW and ATT services and phones. These resellers have a lot of limits put on them as to what they can and can’t sell… they basically need to eliminate all other product lines. So that laces VZW’s concerns with lots of irony.
Here is an example of a local retail partner in my region, they have stores and kiosks under the TEAM Wireless name, but virtually all branding is actually VZW. http://www.teamwirelessonline.com/
To lower operating costs for physical facilities… VZW sets up relationships with communities to start stores to sell their phones and services. The stores are heavily branded as being Verizon, and the typical consumer might not even know that it is a second party store. This is unlike a kiosk, or a reseller like Walmart or Radio Shack that sells VZW and ATT services and phones. These resellers have a lot of limits put on them as to what they can and can’t sell… they basically need to eliminate all other product lines. So that laces VZW’s concerns with lots of irony.
Here is an example of a local retail partner in my region, they have stores and kiosks under the TEAM Wireless name, but virtually all branding is actually VZW. http://www.teamwirelessonline.com/
Hard to believe Apple would create the configuration confusion with almost identical products that can only be used in some situations. More believable they would build a dual mode configuration.
Also hard to believe Apple will compromise the user experience with carrier crap. I’m pretty sure if you want to play with Apples ball, you use their rules.
Hard to believe Apple would create the configuration confusion with almost identical products that can only be used in some situations. More believable they would build a dual mode configuration.
Also hard to believe Apple will compromise the user experience with carrier crap. I’m pretty sure if you want to play with Apples ball, you use their rules.
El Guapo said
“Show the proof where it was ever said that it was a 5-year deal.”
Steve Jobs himself said this during the iPhone launch. I will try to find the keynote presentation.
El Guapo said
“Show the proof where it was ever said that it was a 5-year deal.”
Steve Jobs himself said this during the iPhone launch. I will try to find the keynote presentation.
@Breeze
I haven’t waited out of stupidity or a hate for AT&T, but the fact that Verizon is the only major carrier that works where I live in rural Ohio. In almost the entire county, Verizon is the only carrier even close to reliable.
@Breeze
I haven’t waited out of stupidity or a hate for AT&T, but the fact that Verizon is the only major carrier that works where I live in rural Ohio. In almost the entire county, Verizon is the only carrier even close to reliable.
Using a phone:
You call somebody,talk to him/her,and then
hang up. What the hell is all this V Cast
garbage?
Using a phone:
You call somebody,talk to him/her,and then
hang up. What the hell is all this V Cast
garbage?
MrMcLargeHuge:
I doubt Apple will concede control to Verizon crap ware, Apples not desperate.
MrMcLargeHuge:
I doubt Apple will concede control to Verizon crap ware, Apples not desperate.
…”Using a phone:
You call somebody,talk to him/her,and then
hang up”
How quaint, how 20th century…
…”Using a phone:
You call somebody,talk to him/her,and then
hang up”
How quaint, how 20th century…
@breeze
I completely agree. And I wouldn’t buy a Verizon iPhone if it did have that crap and wasn’t removable. If it really is coming to Verizon, I presume Apple won the fight, because I don’t think they’d ever give in to those demands.
@breeze
I completely agree. And I wouldn’t buy a Verizon iPhone if it did have that crap and wasn’t removable. If it really is coming to Verizon, I presume Apple won the fight, because I don’t think they’d ever give in to those demands.
@Predrag
This is my current state. I don’t even have texting (can’t stand texting really). I’ve always said an iPhone would be the only thing to get me away from a basic phone, and for me, it has to be Verizon, so this has me excited.
@Predrag
This is my current state. I don’t even have texting (can’t stand texting really). I’ve always said an iPhone would be the only thing to get me away from a basic phone, and for me, it has to be Verizon, so this has me excited.
@Breeze
“…you might have to eat some of the typical carrier shit that Apple has managed to save you from to date?”
You mean the way Apple saved everyone from eating AT&T’s shit for the last five years?
If Apple didn’t compromise, every one of its products would resemble a universal remote. If Apple didn’t compromise we’d never hear tales of replacement products post-warranty.
You have this delusion that Apple never compromises the user experience, but there isn’t an Apple consumer alive who hasn’t experienced Apple’s product’s shortcomings in one way or another. I personally, live with Apple’s flaws but I don’t mind because over and above the flaws, the experience is still better than the alternative.
You see, Apple sets the bar so high for the user experience, that even when they fuck it up royally, they’re still miles above the competition.
Clearly, Apple’s relationship with AT&T is indicative of a compromised user experience. How many times has AT&T publicly humiliated Apple, forcing them to compromise features and services on their customer’s behalf?
You, and others like you, talk about this virtuous characteristic of maintaining a rapturous user experience at any cost and yet I’ve seen little evidence of that in the last thirty-years, especially if your warranty expired.
Before Jobs’s return, Apple’s customer service sucked like everyone else’s. The Mac’s piled knee-deep in the channel were cheap, beige, plastic pieces of shit, just like everyone else’s. If your Mac broke, you were lucky to find an authorized dealer and even then you went without for weeks, if not longer.
We all suffered the stigmatism of using Apple products. Many of us were humiliated and ridiculed for playing with toys and no one took us seriously. Whose fault was that?
Things have changed dramatically with Jobs’s second-coming. He lifted Apple to an ideal that is without peer and its products and services are top drawer, but they aren’t without flaws.
Every Apple user on the planet has learned to circumvent the niggling little flaws that degrade the user experience and I say you’re a liar if you would have us believe all your Apple products and your interactions with Apple, are perfect.
So get off this no-compromise schtick you’ve got going and wake up to reality. Steve Jobs isn’t going to live forever and we all know there is some stooge who will eventually come along and deplete all of Apple’s cash and goodwill. It all comes and goes in cycles and I’ve experienced more than a few since 1979.
@Jay-Z
“If anyone can stand up to Verizon, it’s Apple.”
Puh-leeze. Good business is not a zero-sum game and Apple needs Verizon more than Verizon needs Apple. Business-wise, Apple needs every carrier it can get, so why would Apple uphold some line drawn in the sand, and eschew 70-million potential Verizon customers? They won’t.
iPhone on Verizon will be a compromise. Verizon’s media store is flash-based. Their app and game stores are subscription-based. The music store is mp3-based and all songs are a buck-thirty and a ringtone for the very same song is three-bucks!
Verizon calls all the shots with every manufacturer it does business with, so how will Apple be any different? If Apple offers them the iPhone, Apple will compromise a great deal, but not before strategizing ways to compensate for a diluted user-experience. Will we see Flash on a Verizon-branded iPhone?
Verizon store clerks will be motivated to sell spiffed competing phones because iPhone commissions will be so puny.
If Verizon wants to use VCast exclusively on iPhone, then let ’em! If Verizon can get a percentage of all iTunes and App Store sales, great! At least Verizon customers will enjoy the expanded experience.
However, anyone who signs a contract with Verizon, knowing their iPhone will not be able to access Apple’s products and services, or perform to the phone’s full potential, then who cares, if they don’t? Apple won’t, and I won’t hold it against them.
AT&T, on the other hand, will waste no time in illustrating what a compromise the iPhone experience is on Verizon.
Caveat emptor!
@Breeze
“…you might have to eat some of the typical carrier shit that Apple has managed to save you from to date?”
You mean the way Apple saved everyone from eating AT&T’s shit for the last five years?
If Apple didn’t compromise, every one of its products would resemble a universal remote. If Apple didn’t compromise we’d never hear tales of replacement products post-warranty.
You have this delusion that Apple never compromises the user experience, but there isn’t an Apple consumer alive who hasn’t experienced Apple’s product’s shortcomings in one way or another. I personally, live with Apple’s flaws but I don’t mind because over and above the flaws, the experience is still better than the alternative.
You see, Apple sets the bar so high for the user experience, that even when they fuck it up royally, they’re still miles above the competition.
Clearly, Apple’s relationship with AT&T is indicative of a compromised user experience. How many times has AT&T publicly humiliated Apple, forcing them to compromise features and services on their customer’s behalf?
You, and others like you, talk about this virtuous characteristic of maintaining a rapturous user experience at any cost and yet I’ve seen little evidence of that in the last thirty-years, especially if your warranty expired.
Before Jobs’s return, Apple’s customer service sucked like everyone else’s. The Mac’s piled knee-deep in the channel were cheap, beige, plastic pieces of shit, just like everyone else’s. If your Mac broke, you were lucky to find an authorized dealer and even then you went without for weeks, if not longer.
We all suffered the stigmatism of using Apple products. Many of us were humiliated and ridiculed for playing with toys and no one took us seriously. Whose fault was that?
Things have changed dramatically with Jobs’s second-coming. He lifted Apple to an ideal that is without peer and its products and services are top drawer, but they aren’t without flaws.
Every Apple user on the planet has learned to circumvent the niggling little flaws that degrade the user experience and I say you’re a liar if you would have us believe all your Apple products and your interactions with Apple, are perfect.
So get off this no-compromise schtick you’ve got going and wake up to reality. Steve Jobs isn’t going to live forever and we all know there is some stooge who will eventually come along and deplete all of Apple’s cash and goodwill. It all comes and goes in cycles and I’ve experienced more than a few since 1979.
@Jay-Z
“If anyone can stand up to Verizon, it’s Apple.”
Puh-leeze. Good business is not a zero-sum game and Apple needs Verizon more than Verizon needs Apple. Business-wise, Apple needs every carrier it can get, so why would Apple uphold some line drawn in the sand, and eschew 70-million potential Verizon customers? They won’t.
iPhone on Verizon will be a compromise. Verizon’s media store is flash-based. Their app and game stores are subscription-based. The music store is mp3-based and all songs are a buck-thirty and a ringtone for the very same song is three-bucks!
Verizon calls all the shots with every manufacturer it does business with, so how will Apple be any different? If Apple offers them the iPhone, Apple will compromise a great deal, but not before strategizing ways to compensate for a diluted user-experience. Will we see Flash on a Verizon-branded iPhone?
Verizon store clerks will be motivated to sell spiffed competing phones because iPhone commissions will be so puny.
If Verizon wants to use VCast exclusively on iPhone, then let ’em! If Verizon can get a percentage of all iTunes and App Store sales, great! At least Verizon customers will enjoy the expanded experience.
However, anyone who signs a contract with Verizon, knowing their iPhone will not be able to access Apple’s products and services, or perform to the phone’s full potential, then who cares, if they don’t? Apple won’t, and I won’t hold it against them.
AT&T, on the other hand, will waste no time in illustrating what a compromise the iPhone experience is on Verizon.
Caveat emptor!
@Predrag
Yes,very quaint. Of course, after my call is over, I
might check the weather on my iPhone or the
baseball scores or read in iBook. But I don’t
multitask.
@Predrag
Yes,very quaint. Of course, after my call is over, I
might check the weather on my iPhone or the
baseball scores or read in iBook. But I don’t
multitask.
@g4dualie
“Puh-leeze. Good business is not a zero-sum game and Apple needs Verizon more than Verizon needs Apple. Business-wise, Apple needs every carrier it can get, so why would Apple uphold some line drawn in the sand, and eschew 70-million potential Verizon customers? They won’t.”
Sorry, but that statement had me rolling on the floor… Just look at the market capitalization of each company, and see who needs who? Verizon is stuck in the old CDMA world – which they certainly dominate in the US – but they will be just another provider without that advantage when the next cellular technology puts them squarely in the same game as all the other carriers. Verizon’s clock is ticking, not Apple’s. When Verizon is on the same playing field technology-wise as all the other carriers, they’ll likely lose their legacy advantage, because their customer service is bad, their proprietary user experience is stifling, and lot’s of folks only stick with them for their CDMA rural coverage. They’re kind of like the old Chevy and Ford dealers… every small town had one, but were they really good, or cutting edge? Hardly. I don’t know anyone who really loves their Verizon experience, but they have to use them because of the cellular coverage. They feel trapped, and given a chance would run like hell.
Apple sells lots of things besides cellphones (which they can’t supply fast enough for their world market) so I don’t think Verizon is a make-or-break deal for Apple. More likely the other way around, of Apple finally get’s multiple carriers in the US like in other countries. Let’s face it, Apple sells more iPhones overseas than Verizon could ever add to their total. Let’s just keep it in perspective. If I were running Apple, I’d just nod in agreement with Verizon, but not let them even touch the OS of the phone. They can install some V-Cast app as a default opening screen, but not take over the UI. If they don’t like it, they can just shove it. It’s an Apple iPhone, not a Verizon iPhone. It’s not a generic Android piece of hardware running a generic OS like Android which can be bastardized for whatever carrier it’s on, or whatever hardware it’s installed on. It’s an iPhone, and all iPhone experiences have to be consistent — that’s the brilliance of Apple, so they can take it or leave it. Plenty of other takers out there, believe me.
@g4dualie
“Puh-leeze. Good business is not a zero-sum game and Apple needs Verizon more than Verizon needs Apple. Business-wise, Apple needs every carrier it can get, so why would Apple uphold some line drawn in the sand, and eschew 70-million potential Verizon customers? They won’t.”
Sorry, but that statement had me rolling on the floor… Just look at the market capitalization of each company, and see who needs who? Verizon is stuck in the old CDMA world – which they certainly dominate in the US – but they will be just another provider without that advantage when the next cellular technology puts them squarely in the same game as all the other carriers. Verizon’s clock is ticking, not Apple’s. When Verizon is on the same playing field technology-wise as all the other carriers, they’ll likely lose their legacy advantage, because their customer service is bad, their proprietary user experience is stifling, and lot’s of folks only stick with them for their CDMA rural coverage. They’re kind of like the old Chevy and Ford dealers… every small town had one, but were they really good, or cutting edge? Hardly. I don’t know anyone who really loves their Verizon experience, but they have to use them because of the cellular coverage. They feel trapped, and given a chance would run like hell.
Apple sells lots of things besides cellphones (which they can’t supply fast enough for their world market) so I don’t think Verizon is a make-or-break deal for Apple. More likely the other way around, of Apple finally get’s multiple carriers in the US like in other countries. Let’s face it, Apple sells more iPhones overseas than Verizon could ever add to their total. Let’s just keep it in perspective. If I were running Apple, I’d just nod in agreement with Verizon, but not let them even touch the OS of the phone. They can install some V-Cast app as a default opening screen, but not take over the UI. If they don’t like it, they can just shove it. It’s an Apple iPhone, not a Verizon iPhone. It’s not a generic Android piece of hardware running a generic OS like Android which can be bastardized for whatever carrier it’s on, or whatever hardware it’s installed on. It’s an iPhone, and all iPhone experiences have to be consistent — that’s the brilliance of Apple, so they can take it or leave it. Plenty of other takers out there, believe me.
In a word: YES