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Originally Posted by Sliver
How did being on AT&T exclusively allow them to do this? Wouldn't the market have changed to mimic a popular design whether they had an exclusive contract with a carrier or not?
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I could be totally wrong, so somebody with more knowledge can correct me if I am. My understanding is that Verizon turned down the iPhone at first in part because Apple (being Apple) wanted too much control and it was an untested device. When Apple eventually found a carrier (Cingular, who would buy up AT&T wireless) that would make a deal with them, part of the trade off for the control was exclusivity.
Found some specifics from
http://www.roughlydrafted.com/2007/0...y-of-mobiles/:
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Apple wanted a cut of Verizon’s monthly service fees, veto power over how and where iPhones could be sold, and control of the customer service relationship for iPhone users. Why did Cingular agree to terms Verizon rejected? As the largest GSM provider in the US, Cingular desperately needed a fancy phone to lure in new subscribers.
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As much as everybody rages over the control Apple has over their products, it's possibly the #1 factor in their success.