U.S. Cellular rejected Apple and the iPhone 4S [telecom]

U.S. Cellular rejected Apple and the iPhone 4S

NOVEMBER 4, 2011 BY MIKE FLACY

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Reported in a third quarter earnings call this week, U.S. Cellular CEO Mary Dillon told investors that the company turned down Apple when approached in regards to offering models of the iPhone to U.S. Cellular customers. While Dillon indicated that the U.S. Cellular network was definitely capable of handling the expanded traffic from sales of a new iPhone, Apple's offer was rejected due to terms that were "unacceptable from a risk and profitability standpoint." This indicates that Apple may have wanted a large order placed as well as an upfront payment from the cellular company. Apple may have also stipulated a set of conditions around distribution and in-store placement of the iPhones that was unacceptable to U.S. Cellular.

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Monty Solomon
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