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Sun, Nov 08, 2009 - 09:11 AM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Analyst: Verizon will rue the day they blew the Apple iPhone deal
Friday, November 21, 2008 - 09:57 AM EST

"The Storm may have hit the horizon much too late. The iPhone is remarkably popular and has had relatively few glitches which would drive buyers to another brand. In many ways, the iPhone is the perfect device," Douglas A. McIntyre writes for 24/7 Wall Street. "Who does not want a phone from the perfect company run by Steve Jobs, the perfect CEO?"

MacDailyNews Take: Wiseass, as usual.

McIntyre continues, "Overcoming myth and legend may be beyond the marketing and financial prowess of even a company as large and well-heeled as Verizon."

"There is an excellent chance that Verizon will rue the day that it did not pay the Apple the extortion money to get the iPhone," McIntyre. "In a market when smartphone sales may be pulled down by the recession, having the second best product will not be nearly enough."

Full article here.

MacDailyNews Take: RIM's Storm isn't even second best. The honor of being the distant second best to iPhone is currently held by T-Mobile's Google G1 phone which has garnered, uh, less worse reviews than RIM's click-hungry brick.

And one man's "extortion money" is another's rightful reward for paradigm-destroying innovation.

Regardless of his attitude, the bottom line is that McIntyre's right (for once): Verizon will rue the day that it blew the chance to exclusively carry Apple's revolutionary iPhone in the U.S. In fact, we're certain that they already do as evidenced by their unending and quixotic quest to find a fake iPhone (Prada, Voyager, Glyde, Storm, etc.) with which they can attempt to fool the ignorant.

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Nov 21, 08 - 10:02 am Comment from: Cup

Apple came to them first and wanted to compete against AT&T;, especially with Verizon's nice stores. What a terrible, prideful decision Verizon CEO's made.

Nov 21, 08 - 10:09 am Comment from: dan

hey MDN play nice! Poor VZN is a flagging company struggling to portray its network as being worthwhile to remain subscribed to. Isn't it funny that a cellular network lives or dies based on the handpieces it sells rather than the solidity of its network?

Nov 21, 08 - 10:10 am Comment from: wannabe

"extortion money"? Is Apple supposed to run like a charity for the telcos? Verizon, AT&T;etc are corporate behemoths... anything less than the hardest negotiation with such organizations would be complete folly.

Nov 21, 08 - 10:14 am Comment from: xx

It was never a choice for them. The iPhone had to be based on GSM, not the technology that Verizon uses.

All iPhones made on the planet are GSM/WCDMA compliant.

Nov 21, 08 - 10:18 am Comment from: RTFRA

xx,

RTFRA:

How Verizon blew the Apple iPhone deal - January 29, 2007

Nov 21, 08 - 10:18 am Comment from: John

I miss Verizon's voice quality, which AT&T;does not come close to on the west coast. Verizon does that very, very well.

However, I was, after 8 years, becoming somewhat annoyed with Verizon's late technology adoption strategy. Phones with old technology that only did what Verizon wanted, not what I wanted.

When the iPhone went to AT&T;, I went with it.

The iPhone, with what it does for me, is so much more important than the carrier providing the network.

My wife, who is the opposite of technology. stayed with Verizon because her grown kids are still with Verizon. That type of thing will not last forever, IMO, with Smart Phones taking over the market.

Just my 2 cents.

Nov 21, 08 - 10:20 am Comment from: M.X.N.T.4.1

The rueing has been going on for quite some time already.

Nov 21, 08 - 10:34 am Comment from: yep...

they already rue the day. they are throwing everything that has a touch screen out there!! They are desperate to have phone that can try to resemble an iPhone. at&t;is getting better, thanks to apple of course, they finally are getting off their asses and moving their 3G signal all around in at a fast pace. Verizon was lame, great signal, but acted like a only child that only wanted to let you play with their only so much.

Nov 21, 08 - 10:34 am Comment from: qka

I don't think there ever was a chance of the iPhone on Verizon.

Verizon uses a CDMA network. The iPhone and the rest of the world uses GSM. Other than the US, CDMA is only used in S. Korea.

Apple was looking at the global picture all along.

Nov 21, 08 - 10:38 am Comment from: Colenzae

I stayed with Verizon because of the network. I was on the phone with a friend in Phoenix who uses AT&T;and the call dropped 4 times in about 10 minutes. He says it happens all the time. That's a deal breaker for me. With Verizon, dropped calls are not an issue. The iphone will make it to Verizon eventually. I'll just use my ipod touch in the meantime.

Nov 21, 08 - 10:38 am Comment from: Gabriel

I was reminded of this exchange from the 80s movie "Real Genius":

Kent: [...] Well you won't get away with this. [...] You'll rue the day!
Chris Knight: "Rue the day?" Who talks like that?

Nov 21, 08 - 10:45 am Comment from: Sir Real B. Czar

I was reminded of this exchange in a garage

Mechanic: "Looks like you blew a seal"
Penguin: "No, it's just some ice cream"

Nov 21, 08 - 10:51 am Comment from: chaz

@John

You hit the nail on the head. I'm the opposite, my family went ATT cause I got my wife a phone she can actually use. (2 years with never knowing she needed to check her voice mail?). I'm trapped on verizon because my corporate blackberry is on an exclusive corporate plan. I keep trying to change their directions, and that will happen soon enough.

Nov 21, 08 - 10:54 am Comment from: Rudge

Verizon has their own agenda.

Apple and AT & T have profited by their collaboration. Both have benefitted by this and further improved what they have to offer their customers. I hope that AT & Y will continue to improve their network especially in areas where they are not so strong in.

Nov 21, 08 - 10:55 am Comment from: bizlaw

@ Colenzae:

I live in Phoenix, and have an iPhone (and thus AT&T;). Coverage is no better or worse than when I had Verizon here. In some areas, Verizon is better, in some, AT&T;, and in some, T-Mobile. Simply depends on where you are, much like the rest of the country.

We have mountains down here, and they interfere with wireless signals from all companies.

Nov 21, 08 - 10:57 am Comment from: bizlaw

One thing I haven't seen too many "analysts" or columnists talk about is how willing AT&T;has been to go all out for the iPhone. They really seem excited about it, and seem to be doing special projects just for the iPhone.

Nov 21, 08 - 10:58 am Comment from: HMCIV

I'll not stand idly by while you abrogate my plans. You shall rue this day. Well, go on! Start ruing!"

-Stewie Griffin

Nov 21, 08 - 11:01 am Comment from: Predrag

Today's Joy of Tech is quite amusing (see left on the navbar). If this were the 80's, it would have had a point, but since SJ and Apple had learned a thing of two since then, it is very funny today.

Nov 21, 08 - 11:16 am Comment from: brianm

Vodafone is a major shareholder in Verizon. They saw Verizon pass on the iPhone and then, after its initial success, went and blew it themselves in the UK market. So, having had 2 bites at the cherry, they are now selling themselves on the Storm in the hope that they can then fool the public into investing in it.
Not in my book. My contract with Vodafone expires in February and I'll be straight over the road to O2 and an iPhone.

Nov 21, 08 - 11:24 am Comment from: pastrychef

bizlaw is correct. Cell coverage really does depend on where you happen to be. Personally, I've been with AT&T;for years and have nothing but great things to say about their coverage here in NYC. I get 3G coverage just about everywhere I go.

Nov 21, 08 - 11:33 am Comment from: BMWTwisty

qka had it exactly right:

"Verizon uses a CDMA network. The iPhone and the rest of the world uses GSM. Other than the US, CDMA is only used in S. Korea. Apple was looking at the global picture all along"

Verizon was never really a contender

Nov 21, 08 - 11:45 am Comment from: iLuvMyMacs

/* "I've been with AT&T;for years and have nothing but great things to say about their coverage here in NYC" */

ANY network works well in a major city. Come to New Hampshire and say that. I love my iPhone- but there are times that I miss Verizion- AT&T;is improving in this area but VZ still has better & cleaner coverage.

Nov 21, 08 - 11:53 am Comment from: KenC

Geez, don't give this hit-whore the attention. McIntyre HATES Apple, that's why he called Steve "myth and legend", he may give the iPhone a backhanded compliment, but he doesn't really believe in Apple products.

Nov 21, 08 - 11:57 am Comment from: Crazylegs

I just went and played with a "Storm" in a verizon store and I can confirm this feels more like a drizzle. In time, RIM will correct the software and make it better, and it may live up to it's name, but it will never eclipse the richness of the iPhone platform. Verizon is so stupid - they ran out of the devices less than two hours after opening - and then their entire system went down. With all they hype they have built into this thing you would think they would have their shit together.

But don't be fooled for all you RIM haters out there, I'll still defend their ability to maintain mkt share and profit from the tide that lifts all boats in the smartphone segment.

Nov 21, 08 - 12:11 pm Comment from: Missy Pants

"Verizon('s) ... unending and quixotic quest to find a fake iPhone ... with which they can attempt to fool the ignorant."

Unfortunately, there will always be enough ignorant customers to fool, and cheap Wal-Mart grazers to prey on, for these companies to always remain profitable.

This segment of the population is large enough (in any country) that the bottom-feeding companies can always earn very tidy revenues by simply approximating the look of the high quality item, and manufacturing it cheaply.

It's a long-proven and very successful business strategy.
One does not have to be the best, to be a successful company.

( And by "cheap Wal-Mart grazers", I'm not taking about the actual poor who cannot afford much.
I mean instead, the cheap characters we all know, who don't understand value and can only read a price tag. )

Nov 21, 08 - 12:49 pm Comment from: The Dude

Buyer beware: When the sales person at Verizon says "it's like an iPhone."... what he really means is. "this is not an iPhone, but a cheap imitation that is inferior to the iPhone because we had our shot at the iPhone and blew it."

The Dude abides.

Nov 21, 08 - 12:56 pm Comment from: Mike

Early next decade carriers will switch to LTE, which will replace the current GSM/CDMA networks. At that point one iphone will work on AT&T;and Verizon - IF Apple feels Verizon is needed.

Nov 21, 08 - 01:07 pm Comment from: cb

absolutely not.

Moved to ATT anticipating an iPhone purchase... ATT shit service is not worth the iPhone.

Moving back to Verizon as soon as I figure out how much it is going to screw me.

Nov 21, 08 - 01:09 pm Comment from: cb

post mortum...

While I got my kids sim card replaced for $25 - the ATT rep was busy telling a blackberry purchaser how people are selling their iPhones and moving back to blackberry.

Nov 21, 08 - 01:19 pm Comment from: Raphael Salgado

I for one would have purchased a Verizon-based Apple iPhone. I'll admit that they have a pretty strong network, and a lot of my family is still held hostage with their crappy RAZR V3c's.

However, I'm happy with iPhone 3G on the GSM network, considering that I can surf and talk simultaneously in 3G mode, something that Verizon still cannot do with their EvDO. Not every place has or will have Wi-Fi, so high speed AND talking on the phone is a must-have for me.

Nov 21, 08 - 01:54 pm Comment from: steve516

Japan does not use GSM - for the record.

Nov 21, 08 - 03:48 pm Comment from: r8ix

I switched to ATT in May, because the rep told me it would make the iPhone transition easier, and there wouldn't be any additional charges. Flat-out lie, as it turns out. Now they want to charge me an extra $200 to get the iPhone. It would be cheaper for me to cancel my contract, and then sign up as a new customer that it would be to upgrade. Stupid.

Nov 23, 08 - 05:35 pm Comment from: Alex Bold

If iPhone CDMA was available from Verizon yesterday, there would be no blackberry Storm sales today.

You make stupid marketing or business decisions and they cost your company fortune. This is one of them.

AlexBold take: Apple will rue the day that it blew the chance to carry their iPhone on Verizon network in the U.S.

Nov 25, 08 - 11:36 pm Comment from: Chris

This has got to be the most pathetic bunch of apple fanboys that I have run into in a long while. Every here bowing down to a phone that was full of software glitches and security flaws form day one. I love how every one is bagging on the Storm. Look at the reviews boys. It does way more than the iphone does and it is only version 1. Give it a software update to mix some very MINOR aanoyances and the iphone worshipers will be singing a different tune.

ATT&T;users in NY...how's the coverage. It blows! How is the quality compared to Verizon in most of the country? It blows!

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