Many experts have been claiming that Apple would eventually strike a deal with Verizon and take its phone to the level by reaching out to a whole lot of new customers. It was easy to assume that iPhone would end up on Verizon until Verizon decided to attack the iPhone through its Droid ads. And the company hasn’t stopped there as it is continuing to ridicule AT&T and Apple at the same time. Considering the fact that Verizon has embraced Android phones, there are major hurdles for both Verizon and Apple to overcome if that marriage is going to ever happen. Here is the latest commercial by Verizon attacking AT&T:
But the issue goes beyond silly back and forth action between Apple and Verizon. In truth, both companies want to control their customers’ experience. So it’s tough to see how they could come together with one side making the proper concessions. Lets not forget that Apple is tough in negotiations, and at this point Verizon is not going to treat Apple like AT&T did.
Apple gets very favorable economics with an overall iPhone [average selling price] of $611 and at AT&T, we estimate it is higher at roughly $700. RIM, who is by far VZ’s largest smartphone supplier, only has an ASP of $340
From the rumors going around the Internet, Apple is much closer to T-Mobile than Verizon at this point. Apple has done hybrid deals in the past, and it could end up offering the iPhone to both AT&T and T-Mobile customers. Wired had the story:
While we believe VZ is likely inevitable at some point when 4G technology rolls out in 2012 or so, we believe Sprint and/or T-Mobile are more willing partners for Apple in helping maintain margins and customer controls,Augmented reality toys & gizmos ➡️ for iPhone & iPad
It’s tough to say how longs are the odds of us seeing the iPhone offered through Verizon wireless. But that move seems to be inevitable. T-Mobile sounds like an easier partner for Apple to work with at this point. Verizon customers may be disappointed by the news, but they’ve got Droid to keep them busy for now.