In article <45c0b132$0$69002$742ec2ed@news.sonic.net>,
SMS <scharf.steven@geemail.com> wrote:

> Cubit wrote:
> > Silly me, but the idea of a $500 phone seems absurd.
>
> Or $600.
>
> But that wasn't the sticking point according to the article. Verizon
> wouldn't have cared about the handset cost, but giving monthly revenue
> to the handset maker is unprecedented. Having Apple handle distribution
> and repairs would seem to be a good thing, not a bad thing.
>

Not from verizons viewpoint? I'm not sure how verizon handles these
things when it comes to high end phones but i imagine they want
customers using minutes and if justified would simply replace a
malfunctioning unit, where as apple would prefer to repair it which
obviously could take a few days to a week or more thus customers aren't
racking up minutes. Not surprising verizon wouldn't agree to this.
I'm sure they'd prefer to replace it immediately and send the
malfunctioning units back to apple themselves, which is how it should be.

> In a few months, there will be other similar handsets released, and the
> hoopla over the iPhone will give way to the reality that it costs $600
> and that it lacks a lot of PDA functionality. The gadget freaks will buy
> it, or those that were going to buy a video iPod and that have Cingular
> already, but it's not going to cause a lot of Verizon customers to jump
> ship. Look at how poor the Cingular network was rated in most U.S. metro
> areas, and think about how many people will give up coverage for
> watching movies on a small screen.