[mattmaroon]

Is it just a weakness? They presumably get a lot from the AT&T deal. The right to exclusive Apple branding on the phone. Visual voicemail, some untold but presumably high % of monthly contract fees (allowing them to plow tens of millions into ads, creating the virtuous cycle of users and app developer growth), an unprecedented degree of freedom over app distribution, commitments to building out the cell network, etc. Building the hardware and software themselves gives them better quality control over the end product, having tremendous upper hand in an exclusive deal with a national carrier performs a similar function.

I'm guessing that had they given in to whatever the hell Verizon requested, and has no reason to discontinue requesting, you'd be looking at a much different phone. That's why I still don't believe we'll ever see a CDMA iPhone.

[raganwald]

Well they got a good deal, but it doesn't strike me as an intrinsic strength in the product itself. I think they traded a product weakness for making money, just as if they had used cheaper materials or lower-quality processes.