Verizon President Offers a Look Inside the Apple-Verizon iPhone Negotiations

121131 verizon iphone begins

Bloomberg takes a look at the negotiations between Apple and Verizon that finally led to yesterday's announcement that the carrier will begin carrying the iPhone next month after three and half years of AT&T exclusivity in the United States. Among the interesting tidbits of information revealed in an interview with Verizon President Lowell McAdam:

- The Verizon cell towers on Apple's campus disclosed by Steve Jobs last July were in fact installed to enable testing of the CDMA iPhone on Verizon's network.

The companies erected Verizon cellular towers at Apple's Cupertino, California, headquarters to check the phone's signal and avoid the reliability troubles of the iPhone at AT&T.

- Engineers from Apple and Verizon worked very closely together throughout product development, with a top Verizon engineer spending more than a year working directly on Apple's campus and Apple engineers being provided with "their own laboratory to play with" at Verizon.

- Negotiations were primarily handled by McAdam and Apple Chief Operating Officer Tim Cook, with input from Jobs and Verizon CEO Ivan Seidenberg as needed.

"We probably worked six or nine months on the technical side of this and saw we could make this work," he said. "Then we did the commercial side. The commercial deal took us a day.

- Verizon and Apple also had to reach an understanding about the prominence Verizon's branding would have on the device, with the iPhone carrying no external Verizon logo and no preinstalled applications or custom software changes promoting the carrier.

To reach a deal, Apple and Verizon had to reconcile different approaches to branding. Verizon puts its stamp on other manufacturers' devices, including phones from Research In Motion Ltd. and Motorola. By contrast, only Apple's name appears on the iPhone.

"They don't put a lot of logos on their phones," McAdam said in the interview. "So that wasnt a major issue for us."

Former Apple executive Jean-Louis Gassee notes that Verizon was likely easily persuaded to go along with Apple's demands in the branding department after seeing the success of the device on other carriers under similar terms.

Related Forum: iPhone

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...