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Verizon says it will have an answer to AT&T's iPhone by late summer

Although the iPhone now appears to be AT&T’s ace in the hole, Verizon actually had first dibs on the iPhone, but refused. Reports back in January said that Apple approached Verizon with the iPhone, but the carrier turned it down because it felt that Apple’s terms for exclusivity were unreasonable.

“We said no [to the iPhone offer]. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial,” said Verizon Wireless vice president Jim Gerace.

Verizon, however, appears to have no regrets on passing up the iPhone, and even believes that the exclusivity of the phone won’t do much to help AT&T. Instead, Verizon believes that it has a superior network and cellular technology.

“The issue is not the Apple-ness of the iPhone itself, but with the cellular network that it is running on,” said Denny Strigl, Verizon’s chief operating officer, insinuating that AT&T’s network is sub-par. “That will be the true test of the iPhone: What will the iPhone experience be?”

Verizon isn’t going to simply play the waiting game while AT&T flashes its iPhone product on every advertising medium available. Although the carrier won’t be getting any Apple products in the near future, Strigl confirmed with USA Today that Verizon is already working with an unnamed manufacturer on a phone that will directly compete against the iPhone.

“We do have a very good response in the mill,” the Verizon COO said. “You'll see that from us in the late summer.”


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RE: iPhone can be used as a phone?
By dagamer34 on 5/23/2007 1:20:19 PM , Rating: 3
if the iPhone sucks at making phone calls or surfs the web too slow, then you'll be stuck with a glorified iPod that you'll end up paying thousands in data fees by the time your REQUIRED 2-year contract is up.

If I were Verizon, I'd pass it up too. Such a limited market for a device that isn't going to reach even 5% penetration of what the iPod has done, there are just better uses of your time.

Economy of scaling says that the iPhone should get cheaper as time passes, but we all know that Apple prefers to introduce new features rather than lower the price and reduce margins to increase profits. Verizon made a smart move. The iPhone WON'T get cheaper over time.

Oh, and for people that forget, the iPod didn't become truly popular until after 5 revisions and 2 price drops to reach $249. $500 is EXPENISVE!


RE: iPhone can be used as a phone?
By Oregonian2 on 5/23/2007 1:34:14 PM , Rating: 1
quote:
f the iPhone sucks at making phone calls or surfs the web too slow, then you'll be stuck with a glorified iPod that you'll end up paying thousands in data fees by the time your REQUIRED 2-year contract is up.


Don't think it'll be a glorified iPod. The similarly sized video iPods have an 80Gb disk, I don't recall the iPhone having that. Does it? Etc.


By slacker57 on 5/24/2007 1:32:00 PM , Rating: 2
I think you're proving his point for him. Buy an 80GB ipod and a regular phone for less. Is it that hard having 2 palm-sized devices anymore? He's not just talking about form factor.


RE: iPhone can be used as a phone?
By psychobriggsy on 5/23/2007 2:12:48 PM , Rating: 2
Well, Apple has had to put a lot of effort into creating PDA and networking applications for the iPhone which the iPod didn't have - luckily for them that meant connecting their existing libraries to a new interface rather than starting from scratch, and recompiling for ARM, so it wouldn't have been that hard. So you will have a mobile web tablet / iPod / PDA even if you didn't use the phone features (which would be rather silly, IMO).

The only difference the iPhone will have over competitors is anything in the interface or mode of operation that Apple has patented. There's quite a few patents of Apple's incorporated, so if they include much needed functionality then the iPhone will be desirable regardless of competition. Also important is the ease of development of new features for Apple, new features are always nice. Here's hoping they at least allow third party development even if the resulting apps are only accessible via iTunes.

Remember Apple's in this to make money, not to take over the market. They'll be happy with 10 million sales a year in a couple of years, if they're getting $500 per sale ($300 hardware, $200 network kickback). It'd be nice if the 4GB/8GB turned into 8GB/16GB though, the iPod functionality will be restricted otherwise.


By Locutus465 on 5/23/2007 11:48:05 PM , Rating: 2
Yeah... I sitll don't get how the iPhone is going to be better than even my i730... UI on the i730 works very well (Windows Mobile 5.0). Being a PocketPC there is a large library of 3rd party apps ready and waiting for me, and so far as I know there isn't anything the iPhone does that my phone doesn't do. And I got mine for $100 :)


RE: iPhone can be used as a phone?
By alexsch8 on 5/23/2007 2:16:29 PM , Rating: 3
Considering it only supports the Edge network and not 3G, expect to get a dial-up Internet experience. If I was to spend that much money on a phone, I'd want it to at least be able to do 3G. There are several phones out there already doing 3G, I really don't understand why they wouldn't have that in the iPhone.


By Locutus465 on 5/23/2007 11:49:40 PM , Rating: 2
3G makes a huge difference. Just upgraded from a Samsung i700 to an i730. I used to never go near my 10MB/month gap. Now I have to turn on the wi-fi every oppertunity I have to make sure I don't bust limits.


RE: iPhone can be used as a phone?
By msheredy on 5/23/2007 2:32:24 PM , Rating: 2
quote:
Such a limited market for a device...


If you call the market for smart phones small then you are right.

quote:
... that isn't going to reach even 5% penetration of what the iPod has done, there are just better uses of your time.


This isn't and iPod nor is it intended to compete with MP3 player market share. If the network that AT&T is good then this phone will be a breath of fresh air to the smart phone market. Apple's products just simply work... easily. I just wished that Verizon didn't pass the oportunity. I really don't like Cingular/AT&T.


RE: iPhone can be used as a phone?
By kalgriffen on 5/23/2007 2:47:21 PM , Rating: 2
Considering that Cingular's unlimited data plan costs $19.99/month, you would only pay $479.76 for a two year contract. Please don't exaggerate amounts when making a point.


RE: iPhone can be used as a phone?
By Faust0 on 5/23/2007 9:15:55 PM , Rating: 2
you forgot to factor in the required 59.99 voice plan which brings it the amount to just under two large. nice use of the words 'considering' and 'only'.


By kalgriffen on 5/23/2007 9:41:19 PM , Rating: 2
I did not forget to factor a voice plan in. My reply was specific to this statement "you'll end up paying thousands in data fees..."


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