Verizon CEO confirms he's told Apple he wants the iPhone, won't say if he's getting it
By Donald Melanson 
posted April 6th 2010 2:32PM
posted April 6th 2010 2:32PM
So Verizon wants the iPhone. No secret there, right? Not exactly, but Verizon CEO Ivan Seidenberg has side-stepped any questions on the subject in the past, which makes his recent comments at a conference hosted by the Council of Foreign Relations all the more notable. For the first time, Seidenberg confirmed that he has told Apple that he wants Verizon to carry the iPhone, adding that "we're open to getting the device,"and that "our network is capable of handling it." What he wouldn't say, obviously, is whether Verizon would be getting the phone, saying simply that it's "Apple's call." In other news, Seidenberg also took the opportunity to shoot down rumors of a merger with Vodafone, saying that "there's no compelling reason that this is an exciting thing to do," although he did add that things could always change.
I'll bet Jobs' reaction was unpublishable.
@DirtyVegas why's that?
@DirtyVegas
Yes, especially since Verizon laughed in Apple's face back in 2005. Didn't Verizon whine to Congress about AT&T having an exclusive with the iPhone shortly after it came out? If I were Steve Jobs, I would make them pay just as much as AT&T, maybe more.
I'm seriously curious why Apple wouldn't bring it to Verizon, Sprint, T-Mo, etc etc etc. I don't understand ANY cell manufacturer offering phones exclusively to one carrier. More phones to more people = more money, right? What am I missing?
@Peter Church
If I were Steve Jobs I'd want as many people as possible to have an iPhone - and there's a whole bunch of people who are locked into Verizon and can't get one.
@fchipm Yeah, spite doesn't really have a place in business... Apple stands to make huge piles of money off of this release, so I don't see them throwing up many roadblocks.
@werty1432k
I might be paraphrasing here but...
Dear Mr. Seidenberg,
Thank you for queries regarding availability of the iPhone on a network vastly superior to AT&T's feces filled coverage. However, since you passed on the miracle phone the last time, I, Lord Superior, Master Extraordinaire, have deemed that reconciliation is out of the picture.
I question your parentage, imply that your female parenting unit is my female canine, and suggest you go fornicate yourself.
Steve
--------------------
Sent from my ipad
@TMoney2007 However, if it gains you a little bit of negotiation leverage in the future it can be a business tactic. I'm not endorsing it, but hear me out. Project the amount of revenue given by going to Verizon. Now, equate that against the fact that others will be more fearful of passing up your opportunities you present them and weigh them against each other. Yes, Verizon will probably bring more money than the latter, but not if they have some über-mega bargaining chips that they can leverage stronger in the future cuz of this. Again, not really endorsing it, just playing devil's advocate and thinking of downranking myself anyways.
@DonClark
Apple doesn't need Verizon or market share. Apple should be concentrating on profitability. And to increase profitability they need to continue to innovate enough to make the iPhone attractive enough to get better contracts with more and more phone carriers all over the world. Nokia for instance, has more markets hare worldwide than Apple, but make less money.
So Apple is doing it right, they just need to continue what they're already doing well.
@Peter Church Verizon:"Wait we didn't think it would be popular, I mean it's not like we got to see one before we told Apple to screw off!!
Now we want it!! Waaaah"
Morons!
@DirtyVegas Jobs replies are generally concise and straight to the point e.g.:
No, have you considered Nokia?
Steve
--------------------------
Sent from my iPhone (but not on your network kthx)
@DirtyVegas Really? I imagine Jobs loves it. Leaks like this potentially stop Verizon customers that love their superior network from buying Android phones in the meantime. And if the phone does come this year: huge sales for Apple.
@Peter Church -- "Yes, especially since Verizon laughed in Apple's face back in 2005."
-- Apple wanted a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers, said Jim Gerace, a Verizon Wireless vice president. "We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial." --
Does that sound like they laughed in Apple's face? It sounds like business to me.
Do you remember the cell phone landscape 5 years ago? It's nothing like it is today.
Apple is leaving money on the table by *not* putting their products on Verizon. Grudges are fine... until you have to answer to the shareholders...
@fchipm I think originally it was because of the (then) unprecedented level of control Apple wanted over the phone, distribution, app store, etc. ATT was the only one willing to be a dumb pipe for Apple. Now that the phone is very popular they have reconsidered...especially since more and more they are becoming dumb pipes and are doing less branding and customizing. I think they finally gave up trying to make money selling $1.99 ringtones and Java games and now want to make their money selling data plans.
Suits me fine because now they are all scrambling to outdo each other on price and 4G upgrades. I've always stuck with Sprint for price and reliability of the data network but I'll switch in a heartbeat if anyone can beat them on those things. I'll always go for the carrier that gives me fast unlimited data for the lowest price.
@juanvaldez The problem with that thought is that ATT and Verizon are the only wireless companies that are actually doing well right now. Sprint is in the dumps and t-mobile is small potatoes (if they dump iExclusivity, t-mobile might get the iPhone just because it is an easy conversion).
@Peter Church Ya really think that expanding their market share by probably millions of phones wouldn't increase their profit?
It doesn't matter, Android phones will eventually take over.
This iPhone stuff is just a flash in the pan, right Engadget, right?
@TMoney2007
"Ya really think that expanding their market share by probably millions of phones wouldn't increase their profit?"
I don't think it will expand their market share. You're going to have a lot of people jumping ship from AT&T to get a Verizon iPhone, the same phone that had with AT&T. How does that increase market share?
And more than likely, whenever Apple ends their exclusive deal, AT&T will likely give them less money than they are getting now, so their profit share will suffer.
There isn't really a lot of upside to bringing the iPhone to Verizon.
@DonClark That's Verizon's fault. They had their chance and they wouldn't agree in the beginning and then they come out bashing the iPhone with their Droid commercials. Then, they realize they still can't win and the droid wasn't a hit so now they're trying to crawl back to Apple. What a bunch of clowns. I'd actually prefer Sprint and T-Mobile to have the iPhone. Make Verizon suffer.
@TMoney2007
spite has no place in business? Didn't google buy AdMob just to keep it out of Apple's hands? Thus the extra $quarter-billion premium they paid a mere 3 days after apple's no-shop clause expired?
@DirtyVegas
Well of course they *want* it. It's a popular mobile device. Why wouldn't they want it? Obviously the issue is always going to come down to the terms. Sounds like Verizon wasn't willing to split the pie as generously with Apple as AT&T was. We can probably all agree that the iPhone was more successful than expected, so no doubt Verizon's willing to be a bit more friendly on terms, but in turn, Apple is almost certainly going to be more demanding today than they would have been before the 1st phone was sold.
@DirtyVegas
Treanslation: You bastard, Your mother is a b!+ch and go $%^& yourself!
@DirtyVegas
Translation: You bastard, Your mother is a b!+ch and go $%^& yourself!
@Peter Church -- "I don't think it will expand their market share. You're going to have a lot of people jumping ship from AT&T to get a Verizon iPhone, the same phone that had with AT&T. How does that increase market share?"
I think you're underestimating the number of people who are still on Verizon who want an iPhone. I'm one of them. Most people don't want the hassle of switching carriers... because of existing family plans, they get their phone through their job, etc. If they could walk into their Verizon store and get an iPhone... they would.
I'm not sure how many people switched to AT&T for the iPhone... but there are still 90 million customers on Verizon.
Even if you're right, and Apple only adds 5 million brand new customers on Verizon... that's still 5 million new people to buy apps, music, games, etc.
But I think it would be much higher than that.
We're entering the 4th year of the iPhone... if you haven't switched to AT&T by now... will you ever?
The danger for Apple is that Verizon is quickly becoming the Android network... while AT&T is the iPhone network. If Apple waits much longer... there won't be any more people who want an iPhone on Verizon. Apple better hook them soon...
I'll be there on day one if the iPhone comes to Verizon. If not... I'm getting a Droid. It's as simple as that.
And no company wants to turn customers away...
@fchipm : LOL, yeah, why isn't the iPhone available on every existent network?
@RidleyGriff yeah and how long will the lie last? They will go android one way or another when the realize the iphone is not coming to verizon.
@fchipm
You're missing the part where Apple DOES NOT NEED NOR WANT VERIZON
WHY IS THAT SO HARD TO UNDERSTAND.
VERIZON SPIT ON JOBS FACE YEARS AGO WITH THE ORIGINAL IPHONE.
VERIZON WILL NEVER GET THE IPHONE
@Michael Scrip
You don't seem to understand the profit margin argument. How much do you think Verizon and AT&T would pay for a non-exclusive phone? As a CEO, would you rather be making $600 a phone, as Apple does now, or $200 a phone? There is potential for a slight surge of users, but I don't think it would make up for what Apple would potentially lose by ending their exclusive contract with AT&T.
And it's not like everyone on AT&T has an iPhone. I know plenty people who don't. Apple should be concentrating on converting more people already on the AT&T network, at $600 a customer, than converting a few people on Verizon's network.
And Apple doesn't make a significantly amount of money from the App Store, not compared to their hardware sales.
@fchipm
If what you're saying is even remotely true, ("lots of people locked to Verizon and can't get out") it means that americans have finally lost any sense of their individual rights and any will to try to defend them against the powers of multinational and giant corporations (which are US born but mostly foreign owned, and if still are amaerican owned are in debt with foreign banks and lenders).
How long does it take for you to relize that you're getting screwed and laughed at ?
I just got received my HTC desire paid 50 USD, for another 50usd per month I get free data and talk for 6 months with that phone after which period the phone is unlocked , and I can swich to any carrier I choose.
My other phone an HTC HD2, I got last september (and still use with a pay as you go simcard) was even cheaper.
All carriers will give iPhones (even if there are fewer and fewer takers ), most of them free or nearly free with the same 6 months lock, which is the maximum allowed by law.
For us europeans who not long ago, were forced clients of money loosing (but at least cheap) state owned monopolies for nearly all utilities, the US situation looks like a cautionary tale against the virtues of deregulation and free enterprise.
I love all sorts of freedoms, but when some of the subjects of a society (such as corps .)are much stronger then the mass of the citizens it seems to me that some rules and constraints are necessary in order too protect the very freedom of the majority.
Jeez you yourself invented anti trust laws : what happened to land of the free ?
@Peter Church
True... but will AT&T pay $600 for every iPhone until the end of time? AT&T already doesn't make any profit from iPhone customers until the 17th month of their 24 month contract... are they gonna keep doing that forever?
What if Apple made Verizon pay $600 for every iPhone? Verizon might balk at that at first... but they'll be getting $30 a month from a customer who might have never gotten a smartphone in the first place.
So... you don't think there's *any* chance Apple would make more money by being on 2 carriers?
You're right if Apple can keep charging AT&T that huge amount of money for the "privilege" of carrying the iPhone... but who knows if they can keep doing that forever.
@Michael Scrip
Too bad no one cares...
Verizon customers need to face reality.
YOU WILL NEVER SEE THE IPHONE.
@TheLondonExchange
I agree. I think it very unlikely you'll see a Verizon iPhone. It could happen, but I would be shocked.
@DirtyVegas
Verizon will take the iPhone when it's profitable. End of story.
@DonClark You say locked in as if I couldn't leave if I wanted to. Sure, the iPhone looks like a neat toy, but in my history with Verizon I have had nothing less than a great experience with them. The value of staying on Verizon exceeds the value of the iPhone - you can read into the details as much as you like, though believe me when I say that it's worth sticking with Verizon for me.
Bottom line: Good things come to those who wait. If the iPhone becomes an option for Verizon I'd buy it in a heart beat.
Besides... I'm due for a new phone anyway...
@techi25 The Droid wasn't a hit? Really? The Droid is looking to sell between 4.5 and 5 million units in its' first calendar year. The iPhone sold approx 6 million units in its' first calendar year. Last I checked that is nothing close to a flop. You also have to remember it isn't JUST the Droid. There is the Eris, Incredible and N1 for Verizon. All of which contribute to the overall Android install base.
@Darkseider
The Droid is a shit wannabe phone.
The Droids sales are no where near the level of the 3GS.
They suck..plain and simple.
And it's absolutely hilarious how the Apple/AT&T HATERS make it seem like the iPhone is THE WORST phone out on the market yet at the same time they are desperately wanting AT&T to lose it's exclusivity agreement.
Sorry but AT&T and Apple have a SOLID relationship which they will both be willing to carry on forward.
The iPad PROVES THIS.
Part of the allure of the iPhone is IN it's exclusivity with AT&T.
If you guys can't understand that then too bad so sad. Apple doesn't need Verizon.
Verizon wants Apple.
Therefore Apple will NEVER allow the iPhone on Verizon. Especially after the "Droid Does" campaign and the 'island of misfit toys" crap they pulled.
@TheLondonExchange
Once again, you're wrong on every point of your post. People could care less who has the iPhone, just that they could get one. You're so stuck on brand loyalty that you're not seeing the economic possibilities of Apple getting rid of its AT&T exclusivity.
And if the droid is such a shit phone, why did so many people jump ship from AT&T to get it? (The tech people anyway)
I think you're the first and only AT&T fanboy I've ever seen.
@TheLondonExchange lol talk about an apple sheep. The droid has more functionality than the iphone can hope to have. Dont worry the next iphone may have equal features but by then the droid 2 and the evo 4g will be out and you'll be left wanting and defending again.
@TheLondonExchange
The Droid sucks so much that it has sold more units that the iPhone in the same time perido when they both came out,
You're a really smart guy????
Apple's response"
Dear Seidenberg,
We are happy to assist you about purchasing the iPhone. It is available at www.apple.com, wallmart and any AT&T store. There are various models with different prices. Please keep in mind that you need a 2 year contract or eligible upgrade to take advantage of the discount. A minimum $79.99 plan is also required. Thank you for your inquiries.
Apple Genius
@fchipm
Well think about it from this perspective. Its all about quality control.
Apple is taking AT&T and truly forcing it to become a great network. Its taking sometime but ever since the iPhone came to AT&T the network has been getting better and better and Apple intends to hold this for sometime they pretty much have AT&T by the balls.
Also there is one other reason why Apple may be holding it back and yet again it falls on quality control and just basic operation of the device.
You can't talk and use data at the same time on Verizon.
I could see a lot of people being disappointed when they couldn't open an email and talk to a person at the same time. If you think about it thats a pretty big handicap on that sort of device that already markets otherwise and that cannot be fixed until they start rolling out LTE.
@bantam -- "You can't talk and use data at the same time on Verizon.
I could see a lot of people being disappointed when they couldn't open an email and talk to a person at the same time."
Yet... people love the Droid on Verizon. Weird huh.
And it's funny that no one really talked about that until AT&T started harping on it. Verizon's been around for what... a decade now?
You might not be able talk and surf the web at the same time... but at least Google Voice works :)
@fchipm What you're missing is that Apple would have to engineer a CDMA version of the iPhone which costs them money. They would have to carry and sell two versions.
@ghostdog -- "What you're missing is that Apple would have to engineer a CDMA version of the iPhone which costs them money. They would have to carry and sell two versions."
That happens all the time though. EVERY manufacturer makes both CDMA and GSM phones... Apple is the only one who doesn't.
RIM makes identical Blackberries for all carriers. Motorola made the GSM Milestone and the CDMA Droid. Even Palm, despite their hardships, is making Pres and Pixies for both AT&T and Verizon.
"They would have to carry and sell two versions" is a lame argument. Will Apple do that? Who knows... but everyone else does.
ha ha!
Smh @ having to quote Mike Jones but here goes... [apple] Back then they didn't want me, now i'm hot they all on me...[/apple]
@MattsZ shoulda went 2pac:
And these bitches they still continue to per sue me
A couple of movies now the whole world tryin to screw me
I guess he didn't give a release date on the Incredible either...
@steakman
It's April 25th.
As a Canadian this impacts me greatly!
I really hope they do get it. This might be the swift kick in the ass that AT&T needs to finally pick up some decent Android phones.