Verizon dropped the ball on iPhone

USA Today ran an article last week describing how Apple first approached Verizon, not Cingular, to carry the iPhone--and that Verizon passed on the deal. Jim Gerace, "a Verizon Wireless vice president" then goes on to describe the intended deal in detail which seems to me bad form. Regardless, the details are out there now, so lets take a look at the pill that was so hard for Verizon to swallow:

• iPhone could only be distributed through Verizon and Apple stores (not Wal-Mart, Best Buy, etc.)
• Apple would have handled all customer/technical support on the device
• Apple would get a cut from the monthly fees
  

The thing is--I completely agree with their terms! The hardware distribution clause would ensure that the associates selling you this $500 device have a freaking clue. Best Buy? Wal-Mart? Mall kiosk guys?! They'll swear that the phone will break-up with your girlfriend for you just to make a sale. Apple wants to make sure that the person selling their new baby is well-trained in both what the product will and won't do. The clause that you would deal with Apple if an iPhone had hardware problems? Sounds great to me. Verizon customer support is legendary in its incompetence and complete un-helpfulness. Apple, on the other hand, consistently scores highest in support rankings. As far as getting a cut of the monthly cell phone fees, I'm frightened to even see how much its going to cost per-month for the voice-data-"visual voice-mail" bundle that these phones need. Asking for a cut of that doesn't seem outrageous to me, but I'm certainly not a cell-phone industry "insider", so maybe that is unheard of. Still, I would guess that Research In Motion (BlackBerry) gets a cut from monthly fees.

When all is said and done, Apple can be difficult to work with, that's well known. But, I consistently feel like they're working hard to protect their brand, their products, and their customers--which isn't such a bad thing. After all, when RAZR's start being sold on the Dollar Menu at McDonald's by your loser cousin (the one with the "frickin' sweet" collection of fruit bongs), you maaay start to question Motorola's partnership deals.