karlkrandall@sbcglobal.net wrote:
> When Apple and Cingular are raking in the bucks next fall, and Verizon
> decides it wants a piece of the action, what Verizon VP will get
> canned because the 5 year Cingular USA exclusivity contract precludes
> it?
>
> And Verizon blew it cause Apple offered it to them first.

Presumably Verizon knew what they were giving up when they passed on the
iPhone. Perhaps their analysis showed that a $600 handset that lacked
basic PDA functions, and that didn't have high speed data, wouldn't sell
in sufficient quantities, even when promoted by a rock star, or that it
would be very successful for Apple, but not bring much revenue to Verizon.

It's not like there won't be other phones with similar functionality to
the iPhone available, we've already seen that some are coming.

Cingular was more willing to accede to Apple's demands because Cingular
lags Verizon by a huge margin in new post-paid customers. Cingular can
brag about having the most customers, but a lot of those customers are
low margin, low ARPU, prepaid customers.