Apple, Verizon Partnership Might Not Run Smoothly: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2010-10-07 Email Print this article Print
 
 
 
 
 
 
 

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.



 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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