Bloomberg Businessweek interviewed Verizon CEO Ivan Seidenberg, which has revealed some of the backstory of the development of the original iPhone that was released in 2007. Specifically, Seidenberg states that Verizon was never approached by Apple to carry the original iPhone. He further states that Apple was only concerned with developing a GSM technology and AT&T won exclusive rights.
Here’s a excerpt:
It all started with Apple (AAPL), and Apple decided that it wanted one carrier in every major market. So Apple and AT&T consummated a deal three years ago. And because Apple was more focused on a single technology – the GSM technology – they chose AT&T. We had good discussions with them, but it was clear to us that they weren’t looking to make a device for both sets of technologies.
Seidenberg and Verizon President McAdam reportedly asked Apple CEO Steve Jobs and COO Tim Cook if they were interested in bringing the iPhone to Verizon’s network. So, it looks like Verizon knew that they needed the iPhone on their network in order to compete with AT&T in the long run. This fact also suggests that it was Apple and not Verizon delaying the CDMA iPhone.
This report comes just days after Bloomberg interviewed Verizon President Lowell McAdam, who gave details on some of the development and negotiations that took place between Apple and Verizon to bring the iPhone 4 to Verizon.
In short, Apple took a two step approach, gambled on the whole concept of the iPhone and GSM technology, won out, and is now going for market share on the CDMA networks. This can all be seen in hindsight, and it worked out brilliantly.
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