US Cellular turned down iPhone 4S deal: here’s why

Nov 4, 2011
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US Cellular turned down iPhone 4S deal: here’s why

It should be well known by now that an iPhone on any carrier inside the United States is a big deal for that carrier, but this week we're to understand that one carrier in particular, US Cellular, turned down the opportunity. The original exclusive carrier of the iPhone was AT&T, and it was only this past year that Verizon was allowed in on the party. With the iPhone 4S, the doors were opened to several carriers including little-known group C-Spire.

Another group that doesn't carry the iPhone and has let known its reasons for doing so is T-Mobile, the last of the four biggest carriers in the United States to not have the device on their network. So what's the deal with US Cellular that they had the option to carry the iPhone and opted out? Money, that's the deal, plain and simple, money and risk. Have a peek at this tidbit spoken by US Cellular CEO Mary Dillon to investors on a conference call this Friday:

"the terms were unacceptable from a risk and profitability standpoint." - Dillon

Of course this was a similar situation with big yellow as they'd have to go into loss mode for several months before gaining any real profit from their new iPhone deal. Meanwhile US Cellular stays strong on the Android front, getting devices like the dual-core Motorola Electrify in their collection to keep up with the bigger guns. As for the iPhone 4S: it's selling quite well, thank you.

[via USA Today]


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