[mdasen]

I don't doubt that Apple will want to get the iPhone onto Verizon's network. However, Verizon itself has said that Apple has no interest in making a non-GSM phone. I'm guessing, as the article postulates, that these negotiations are a way of milking AT&T for more money. Verizon is rolling out an LTE network which Apple will probably provide a device for, but that network won't be finished until 2014 according to the latest reports.

However, these negotiations could get a lot more money out of AT&T who desperately would like to keep the iPhone as an exclusive past 2010.

As for the iPhone losing its "special-ness" when it becomes multi-carrier like the Motorola RAZR, that's a different situation. The RAZR was a basically unchanged phone for years. It was hot when it came out because it was new and different, but other phones became even better than it as Motorola rested on its laurels. Apple has a few advantages here. First, they've shown with their iPod line that they won't be content selling the same, unimproved product when they could be making improvements. Second, one of the most attractive things about the iPhone right now is the App Store.

The App Store has put a huge barrier up against competition. Sure, there are a million-odd Android phones out there, but there are nearly 40M iPhone/iPod touches out there - and, in terms of developer mindset, the iPhone is where it's at. In fact, the iPhone is starting to look like Windows in that developer mindset is firmly behind the iPhone and alternative platforms aren't seeing the cool applications coming out for them. Apple's now in the position where third parties are creating the value of their platform by developing for it. I'm not saying that's a good thing (as someone who will shortly own a Palm Pre), but it does look like I'll be stuck without many of the cool apps.

[philwelch]

The RAZR was a fashion phone. There's nothing, featurewise, that the RAZR did that contemporary phones didn't also do (aside from being really thin). And it became less special upon release by other networks because it became more commonplace. Something that everyone can get isn't fashionable anymore.

But the iPhone is more than a pretty face.

[aditya]

Agree with everything you've said, but there's an interesting bit of news in yesterday's WSJ:

http://online.wsj.com/article/SB124082748427758659.html

Basically, Verizon added more subscribers than AT&T last quarter, so barrier or not, the iPhone isn't pulling as many people to AT&T as it was earlier. It makes sense from a developer perspective to write for the iPhone but VZW doesn't have to care.

[cstejerean]

The fact that AT&T isn't pulling in as many subscribers does not mean VZW doesn't stand to gain a lot from carrying the iPhone. It can steal existing AT&T subscribers that have iPhones, steal some of the future iPhone owners that would have went to AT&T instead, and also attract people to VZW that want an iPhone but really don't want to be on AT&T.

The kind of growth VZW would see from carrying iPhones should be much bigger than what AT&T is experiencing at the moment, since most of the people that want an iPhone AND are willing to switch to AT&T have already done so.