Apple, Verizon Wireless make (inevitable) iPhone deal
New iPhone carrier means end of Apple's exclusive U.S. agreement with AT&T
When both sides benefit from a deal, the deal is going to happen. All that have to be worked out are the details.
Which is pretty much how things ended up with Apple, Verizon Wireless and the long-anticipated agreement that will allow Verizon subscribers to buy iPhones for the first time. On Wednesday the Wall Street Journal reported that Apple will begin producing a new iPhone for Verizon Wireless to sell beginning early next year:
The new iPhone would be similar in design to the iPhone 4 currently sold by AT&T Inc. but would be based on an alternative wireless technology called CDMA used by Verizon, people [briefed by Apple] said.
Just two weeks ago Verizon Wireless CEO Ivan Seidenberg was ducking questions about an Apple-Verizon partnership, telling investors that while Verizon would like to offer an iPhone to its 92 million subscribers, he couldn't speak for Apple.
While others speculated that there may never be a deal, I wrote "it seems likely the two companies will get past the posturing and work out an agreement." It wasn't a hard call. Apple can't find new customers for the iPhone if it restricts itself to one carrier. Verizon Wireless wants to sell the iPhone, which, all the justifiable buzz about Android phones notwithstanding, remains popular and retains a loyal customer base. Further, a new study released by Deloitte suggests that nearly half of all iPhone users would dump AT&T in a heartbeat if Verizon began offering the Apple smartphone.
This agreement means more customers -- and more revenue -- for both companies. That's why it was inevitable.