4 ms·
The logic is flawed because the company behind the example he used -- ID -- doesn't make Apple hundreds of millions of dollars each year. Their software doesn't
by smoody 17y ago
The logic is flawed because the company behind the example he used -- ID -- doesn't make Apple hundreds of millions of dollars each year. Their software doesn't sell Macs. In terms of bottom line, ID doesn't really matter all that much to Apple.
But, Verizon would. They could easily double or triple Apple's iPhone revenue next year -- perhaps to the point where they'd have a bigger market cap than Microsoft -- imagine how that would make Steve Jobs feel. What the author is claiming is that Apple would drop a Verizon deal just because they were badmouthing them. That's bad business and Apple is not that stupid. For example,Microsoft office is still for sale in the Apple Stores.
If you ask me (and you haven't), Verizon's ad campaign was an attempt to make sure that when they finally go to the bargaining table with Apple, that they'll have some ammunition -- if they have an android-based phone that has considerable market share, then they're in a better place from a bargaining perspective.
I'll even go out on a limb and make the claim that Verizon increasing their early termination fees was, in part, a way to keep people from jumping over to the iPhone to, once again, increase their bargaining power when sitting down with Apple.
Verizon wants to increase profits. Apple wants to increase profits. Verizon + Apple = increased profits for both.
- protomyth 17y agoVerizon insulted the iPhone. I would imagine this would make Jobs a little madder then when ATI revealed information before a keynote. The dangerous thing about Jobs is that he will do things that are not profit-based. Profit wise, why would Apple give up margin for market share? The name of the game is profit and increased market share brings its own problems (support, regulators). There is a good % of market share and Apple can get there without Verizon. Verizon really doesn't have any bargaining power with Apple. It will cost Apple money to make a phone to work with Verizon and Apple could instantly boost one of the other carriers. Most people don't really travel all that much. Really, most common people want a phone that works in their area. AT&T works great in my area (no dropped calls in MN), but crappy in other parts of the US. Adding T-Mobile or Sprint will add a lot of service area.