14 DAY TRIAL // A recent Wall Street Journal report states Steve Jobs played hardball with carriers about Apple's new device, the iPhone. The journal says the deal negotiated between Apple and Cingular (AT&T) is one that revolutionizes the way mobile carriers do business.
The otherwise heavy-handed mobile carrier Cingular was 'forced' to completely cede control to Apple in the development of the iPhone. Usually, carriers have a say about how phones are developed and marketed, but Jobs would hear no such thing, he believes carriers have no understanding of what Apple consumers are all about.
At Cingular, only three execs had the privilege of actually seeing the iPhone before the launch. They were willing to do anything and accept whatever requirements and requests Apple had for being the exclusive carrier in the US (so we see). The iPhone will become available starting June and will be priced starting $499.
Jobs was also able to obtain many other concessions from the carrier. The negotiated deal stated that the mobile carrier will share part of the monthly fees paid by subscribers. Cingular also agreed not to put its brand on the body of the phone. Apple also negotiated full control over warranty issues, so looks like Jobs got everything covered. Quite a high price for exclusivity...
Verizon has passed on an exclusivity deal with Apple, mainly because of their high demands, and said they see no benefit in such a partnership with Apple. Well, Cingular saw as highly beneficial an exclusivity contract with Apple, despite their requests and financial demands, and so they signed the deal (five-year agreement, sources say). Another 'Well done!' for Steve Jobs...