Verizon pulled out of a deal with Apple as exclusive distributor of the iPhone, saying the deal was too one-sided. Apple launched the iPhone with Cingular wireless.

It's not surprising that Apple pushed the envelope in negotiations with its great brand, incredible success with the iPod, and stiff resistance to major recording labels. Apple wanted a cut of monthly services fees and control over distribution, warranty and replacement, which are not typical in the cell phone industry. It is a slap in the face of major wireless carriers that historically have had the upper hand over their networks and cell phone vendors.

Jim Gerace, Verizon Wireless VP said in USA Today "They would have been stepping in between us and our customers to the point where we would have almost had to take a back seat ... on hardware and service support."