News Analysis: Apple certainly wants to bring its iPhone to Verizon's store shelves, but doing so could be a pain as Verizon potentially makes their working relationship more difficult than it should be.
Rumors
about the relationship between Apple and Verizon continue to dominate
headlines. Speculation abounds over when, not if, Apple will release its
iPhone to Verizon customers. And when that happens, most expect a major
increase in Apple sales, and perhaps a vast exodus of customers from AT&T
to Verizon.
But leading up to that release, and after the companies
finally launch the iPhone on Verizon's network, they won't like working with
each other. Apple focuses too much of its time trying to get everything to go
its way. Verizon would surely hate the thought of Apple gaining too much power
in their relationship, the way the hardware maker did with AT&T.
Apple simply won't like working with Verizon. Here's why:
1. The Android effect
A few years ago, Apple would have had a much easier time
getting what it wanted from Verizon. At that time, the company's smartphone was
the top product on the market. No other devices were even coming close to
matching it. But all that has changed. Now, Android OS is the top smartphone
platform in the space. Verizon is heavily invested there. It doesn't need Apple
as much as it once did, and it knows that all too well.
2. Apple'
s
desire for power
As Apple's relationship with AT&T has proven, the company
wants
all the power in its partnerships. That's something that Verizon will
simply not allow. The company has used its leverage against Google over the
past year, and it has been able to keep Research In Motion a trusted, but
not-too-powerful partner. Don't expect that to be any different with Apple.
3. The realization that Verizon might not need Apple
Android OS has proven to be extremely successful for Verizon.
As a result, the company might not even need Apple. After all, Android OS
continues to sell well, and most believe the operating system's sales will only
grow going forward. If that happens, the impact Apple would have on Verizon's
bottom line would diminish. Thus, its importance would decline with it.
4. Verizon wants a cut
AT&T
was forced to take whatever Apple gave it when it first inked the deal with
Steve Jobs. In the process, it probably gave up a significant money-making
opportunity through all the many ways Apple is monetizing its smartphone.
Verizon has the luxury of coming in later. It knows how Apple is turning its
profit. Expect the carrier to demand a piece of the revenue Apple is receiving
from its many efforts. Apple isn't going to like it.
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