Monday, December 6, 2010

Apple Got Favorable Terms in Verizon iPhone Deal?

Kaufman Bros. analyst Shaw Wu says Apple got the terms it wanted from Verizon in negotiations to offer the iPhone on their network, according to FORTUNE.

Wu says he is "picking up that iPhone economics to Apple are likely to be favorable, similar to that offered by AT&T."

"This is important as many, including ourselves, have been concerned that VZ iPhone economics could be less favorable given the strength of Android and higher cost of components, particularly those associated with CDMA."

Wu also believes that part of the deal was for Apple not to offer the device to T-Mobile or Spring.

"We are hearing that VZ does not want iPhone, the hottest selling smart phone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T."

*thanks iclarified*

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- Posted using my iPhone 4

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