 iPhone
The other option is for Apple to sell the iPhone directly to consumers
without a Sim card, allowing users to later install one from their
mobile provider. This, however, would require Apple to somehow bypass
the providers voicemail to enable their "Visual Voicemail" feature
which requires server-side support.
Apple has previously said that it is looking for a single partner for the entire European market.Greengart suggested that Orange would be well suited to offer the iPhone, because it is the only operator that has significant Edge coverage in Europe.
"Operators consistently told us, not for attribution, of course, that they had spoken to Apple and found the company 'unbelievably arrogant', making demands that 'simply cannot be justified no matter how hot the product is'," Avi Greengart, a principal analyst at Current Analysis, wrote in an advisory on Monday.
The operators did not disclose to Greengart what demands Apple had imposed on European operators, he said in a phone interview. Instead of partnering with an operator, Apple could opt to sell the iPhone through its existing dealer networks or partner with specialised mobile phone retailers such as Carphone Warehouse which has subsidiaries throughout Western Europe.
"Several operators were adamant that they will never offer the iPhone."
If Apple decided to sell the iPhone directly to consumers, it would have to sell the devices without simlock, allowing the buyer to insert their own Sim card. This is not an option for the US market because several providers do not use Sim cards, and because operators use different network standards that prevent the iPhone working on some networks.
In US USA Today reports that Verizon Wireless rejected Apple's offer to carry the iPhone exclusively due to Apple's terms. According to the article, Apple wanted "a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers."
This included limited distribution to Apple Stores and Verizon stores only, leaving Wal-Mart, Best Buy and other Verizon distributors out of the loop. Apple also reportedly insisted on "sole discretion over whether to replace or repair the phone" with regard to customer service.
Cingular reps refused to provide the details of their agreement, but according to the report, the exclusive deal is a five year contract. This is contrary to previous reports that the Cingular's exclusive contract was only through 2008.
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