Apple Got Favorable Terms in Verizon iPhone Deal?

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Posted December 6, 2010 at 10:47am by iClarified

Kaufman Bros. analyst Shaw Wu says Apple got the terms it wanted from Verizon in negotiations to offer the iPhone on their network, according to FORTUNE.

Wu says he is "picking up that iPhone economics to Apple are likely to be favorable, similar to that offered by AT&T."

"This is important as many, including ourselves, have been concerned that VZ iPhone economics could be less favorable given the strength of Android and higher cost of components, particularly those associated with CDMA."

Wu also believes that part of the deal was for Apple not to offer the device to T-Mobile or Spring.

"We are hearing that VZ does not want iPhone, the hottest selling smart phone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T."

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Apple Got Favorable Terms in Verizon iPhone Deal?

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Comments (7)

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John - December 6, 2010 at 2:16pm

Has something changed? Isn't the Verizon iPhone still a rumor, in spite of WSJ and NYT 'confirming' it? I will believe it when I see it.

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Paul - December 6, 2010 at 2:22pm

It's a rumor until Apple/Verizon confirm it publicly, but it's a done deal. AT&T employees have already been trained on what the Verizon iPhone will be/do compared to theirs.

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John - December 6, 2010 at 2:29pm

I still have my doubts.

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Paul - December 6, 2010 at 2:33pm

And I'm ok with that!

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Paul - December 6, 2010 at 2:09pm

Sounds like their exclusivity deal will benefit AT&T just as much as them, seeing how it prevents anyone else from getting the phone is better than all having it. AT&T wins thanks to Verizon!

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vdesai - December 6, 2010 at 10:55am

was that suppose to be "tmobile or sprint"?

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