Verizon CEO: iPhone success a 'conspiracy'

Verizon CEO Ivan Seidenberg probably isn't getting an iPhone 3G.

Verizon CEO Ivan Seidenberg

(Credit: Verizon)

The head of the telecom giant seemed a bit irritated about Apple's march into the mobile phone industry when he answered a question posed by the Financial Times about Apple's chances of reaching the mass market with the iPhone 3G by saying, "There goes the conspiracy again. You're declaring them a winner before they've earned it on the field."

Seidenberg's main contention seems to be that the iPhone isn't a success because it has such a small share of the overall mobile phone market, which is sort of like arguing that GM is more successful than Ferrari because they sell more cars. While it's true that Apple has a long way to go before it dominates the U.S. mobile phone industry to the degree that Verizon does, it's only been a year.

Verizon reportedly turned down the chance to carry the original iPhone over distaste for the revenue-sharing agreements that Apple insisted on for its early launch partners. In a way, that was a sound business decision, as Apple has been forced to retreat from that stance and accept the carrier-subsidy model that is the de facto standard for this industry, reducing the price of the iPhone. However, it's not like the thing was a flop, and even though Verizon is doing pretty well without the iPhone, it is definitely playing around with touch-screen smartphones.

In any event, the 61-year-old Verizon CEO's plan seems to involve waiting for Apple's 53-year-old CEO to retire.

"Steve Jobs eventually will get old...I like our chances," Seidenberg told the FT.

[Renegade Knight]

"Steve Jobs eventually will get old. ... I like our chances," Seidenberg told the FT

Not sure what was cut out of that quote but it doesn't look like much of a strategy.

[pilgrim1629]

Verizon has always had the worst phones, and has always stuck it to their customers by disabling features on their phones that migh cut into their revenue possibilities. You can be a Verizon customer for a day without being reminded of their all-your-moneys-are-belong-to-us attitude. Seidenburg couldn't begin to comprehend Apple's point of view - which is to make sure your customers enjoy their experience with the company.

[pkscout]

Why are we comparing Verizon, who makes no devices and leaches off other vendors to provide their phones, with Apple, who actually makes a phone. I don't mind comparisons to Nokia, Samsung, Motorola, etc, but the Verizon/Apple comparison is like comparing apples to monkeys.

[pjhenry1216]

They aren't comparing the companies. Its not rocket science to see that the iPhone has a big impact on Verizon though. If Joe Nobody is planning on getting an iPhone, that means he's either leaving Verizon for AT&T or not considering going over to Verizon. The iPhone is having a direct impact on Verizon's customer base. Its something Verizon should consider a plan for, a plan more intelligent then waiting for Jobs to retire.

[jepitsch]

Why are we comparing Apple, who makes a device but leaches off of other vendors to provide the network, with Apple, who actuallly makes a phone. I don't mind comparisons to AT&T, Nextel, Sprint, Rogers, etc but the Apple/Verizon comparison is like comparing monkeys to apples

[FS1982!]

Scary dumb

[b_baggins]

Just another dinosaur roaring it's lack of comprehension at the bright fireball in the sky heading his way.

[gsekse]

Verizon works for me because all I want my phone to be is... a phone! I always have service, unlike my nextel. I don't use my camera and wish they had a good phone that didn't have a camera, but they want you to use it. I can't even disable the thing, it takes pictures of my pocket every week. I don't want internet, I don't want an mp3 player, I only use text for my calendar to remind me of appointments. I have other gadgets for the rest of the items.

The user base for Iphone is TOTALLY different from the rather large segment of the population that just want to use their cell phone... AS A PHONE.

[BogusBasin]

John McCain? Is that you?

[Penguinisto]

Well that's nice, but Verizon's CEO is whining about how the iPhone and AT&T are (in so many words) eating his lunch in the smartphone market. (besides, even as 'just a phone', it makes sense to carry one device like an iPhone instead of carrying around four: cell, pager, camera, and mp3 player...)

[Thomas, David]

You know, you just have to love the buggy whip argument. The truth is, you should start collecting pure phones. Not for use, but for the sake of history.

[Pete Bardo]

OMG, another conspiracy theory!

[Nfuego]

I had Verizon Service for YEARS. My wife uses her phone a LOT more than I do and has many friends and family on Verizon. I wanted an Iphone and switched. Verizon did not make a good decision when they passed on the Iphone.

[Mritalian]

A small share in the overall market>>>??????????? there 2nd in the overall market only behind rimm. I am pretty sure mr ivan missed the boat and hes a little p'ed off. Verizon never had good phones and never will. Ex-.. they skipped out on this one. It has been a year well in 2 days it will that they came out with the iphone and look what it has done. Its just the beginning ivan wait till 7/11 . Hope to see you at the fireworks display at Apple.

[pjhenry1216]

They're second in the smartphone market I believe. Plus, they're only second in the US (28% compared to RIM's 41%). In the world, its Nokia with a whopping 53% marketshare, RIM with 11%, and the iPhone with 6.5%. So, overall, RIM is approximately outselling the iPhone 2 to 1. I'm a little iffy on the smartphone/overall market distinction, but most articles claim its the smartphone market, not overall cell phone market. So, the guy is *sorta* right when he says its not a huge success in the cell market, but it is a huge success in the smartphone market.

[home_on_the_arrange]

Well - someone has their panties in a bunch. If they're so wunnerful - then go on about your business and try to come up with some SOFTWARE that makes your service easier to use. The last time I tried to get voicemail out of my Verizon phone it asked me if I wanted to set up an account. This after 5 years of use. And, no I did not hit the wrong keys.
I tossed it against a wall and went out and bought an iPhone - signed up with AT&T and let the Verizon account expire. No renewal. My whole company will be doing that in December. Bye. Someday you'll get old!

[James7777777]

For those wanting just a phone, check out the motorola F3.



For those who think apple cares about anything besides making money, pull your head out. [Post edited by administrator to remove profanity]

[throughtheglass]

I would love to see these big telecoms have to actually compete for a consumers business. The thing that strikes me funny about his response it that he runs the second largest telecom company in the US, and he gets that upset about being asked about the iphone? A single phone model bring out that type of response? The best this ********* can hope for is that Steve Jobs dies? Sounds a little envious to me.

Obviously he has been asked about the iphone quite a bit, which means there is a demand for it on Verizons network. It makes me laugh that this guy can't pull his head out of his a$$ long enough to see the light. Give customers what they want!! Wouldn't it be easier and cheaper than having to constantly pay off our congress-criiters and sena-tards in order to keep competitors out and keep your business alive?

[winstein]

I dumped my Treo from Sprint to iPhone at AT&T. It is more than just the phone, it is the whole experience + the cost of data is cheap. I was paying more for Sprint 1G/2G data plans + fuzzy camera quality and small screen. Today, I use my iPhone to check the weather, the stock market, and surf the web using WiFi at home and at the office. Before the iPhone, no phone company let you use WiFi with your phone. Can't wait for the iPhone 2.0 app store.

[Galaxy5]

Sour grapes, hunh? Verizon was offered the iPhone first, and turned it down. I'd be tired of hearing about it too, if it had sold so many units in its first year, was such an exciting product, and was poised to sell far more in the future.

[Philstera]

Everybody is sick of hearing about the Iphone it doesnt even have MMS picture messaging

[lantzn]

iPhone gets MMS
http://news.cnet.com/8301-10784_3-9978854-7.html?part=rss&subj=news&tag=2547-1_3-0-20

Sick? That's not what I'm hearing. EVERYONE keeps excitingly asking me when the new iPhone will be released. July 11th will be the beginning of the end for many smartphones. Heck maybe even just plain old phones for that matter.

[technewsjunkie]

Get used to it.

[BogusBasin]

John McCain? Is that you?

[iJah420]

e hem ....... berg......... need I say more. Like the guy does not have enough of the green.... I would rather be a dead Steve Jobs and leave an AMAZING story behind my name, then to be remembered as a money grubbing lack luster envious SCHMUCK bilking their customers. WHAT A %^&%&( lower half of the male torso.

iJah420 says have a grateful weekend.

[artistjoh]

I have a few spare blankets if you want to go back to smoke signals for communicating. A phone without a camera means not having a camera at car accidents again, not being able to share a beautiful sunset with my lover or look at the plumbing disaster she wants instant advice on, no mp3 means no longer being able to record notes to myself as I walk, or listen to some calming music before seeing the doctor. I have been living with 3G for more than a year now (not an iPhone and not in the US) and being able to access email, show clients my work online, or having Google Maps in my pocket all the time. These days I even like the app on my phone that tells me the name of the bright stars I can see in the sky on clear nights.

Anyone who thinks that the phone function is the only essential function of a mobile phone has obviously never experienced the usefulness of a 3G enabled smart phone. To grumble humbug about the features on a modern mobile phone is like listening to those folks in the early days of cell technology who thought the landline at the office was all they would ever need, and that the mobile would be an intrusion. It didn't take long for most of us to discover just how useful the mobile is and now landlines are in precipitous decline.

Problem for Verizon is that they took a similar head-in-the-sand view when the iPhone came along. Now their complaints sound like someone jealous of AT&T's obvious success with this internet enabled wonder device.

Tough, but they had their chance.

[lantzn]

We use to be Verizon customers. We left when I saw how the ATT customers were getting bars where I had no connection, when I saw how poorly they treated us Mac users and how they crippled a perfectly good phone that worked with iTunes.
Today we have 2 ATT cheap phones and 1 laptop plan (sierra wireless 875u modem). On July 11th we will be purchasing 2 upgrades to the iPhone 2.0 which I've been patiently waiting for. I know a bunch of people like me that will also be buying the new iPhone. Sounds like Verizon is already the old one.

[ittesi259]

Even if Verizon made a phone its a stupid comparison, as Apple is an electronic hardware and software provider....not a wireless phone company. They do not own, operate or pay for the costs of maintaining the network those iPhones use.

[MCOjerry]

"by Philstera June 27, 2008 1:42 PM
Everybody is sick of hearing about the Iphone it doesnt even have MMS picture messaging"

Who needs MMS when you have e-mail and unlimited data. I think the problem is that too many of those OTHER phone don't even have E-MAIL!

I can send a pic from my iPhone to any e-mail address in the world. I don't need an extra messaging plan and I can type a whole bunch of words (much more than a TXT will hold) to describe that picture.

Take THAT! LOL

[cnetcensorssuck]

Exactly. It's amazing how many people don't get this. The iPhone was designed to be an internet device.

[ben::zen]

Actually, it *is* possible to send email from a cell phone, at least through Verizon. You just send to an email address. There's no extra cost if you have the free messaging. In any event, pure e-mail is much better. Just wanted to point this out, however.