US Cellular Turns Down iPhone Due to Financial Risk: Claims Apple’s Terms Unacceptable
Just recently we received confirmation that carrier C Spire would be the first regional carrier to sell Apple’s iPhone, and speculation grew that a second regional carrier was in negotiation. However, rumors were quickly dispelled that US Cellular would follow in their footsteps as they too were offered a chance to sell the iPhone, but decided to turn it down.
According to US Cellular CEO Mary Dillon, Apple’s terms were “unacceptable from a risk and profitability standpoint.” Dillion confirmed that network capacity was not an issue and that US Cellular is open to selling the iPhone in the future.
We’re not surprised to hear this reasoning from US Cellular as Apple is notorious for enforcing strict terms on partnered iPhone carriers. For example, Sprint revealed that they are paying approximately 40 percent more than normal for iPhone customers, and that their deal with Apple will only last for four years. It is not expected for Sprint to see a profit from the Apple deal until the year 2014.
With Apple actively looking to spread its iPhone love around to any carrier that will play to their rules, they just might have to rethink their terms and conditions in the future. At least if it wants to see US Cellular carry their latest products, perhaps they’ll have to find a way to make it mutually beneficial for all.
