This is an interesting piece on the business aspects of the iPhone-Android wars:
Verizon Deal May Expose IPhone Flaws
Verizon Deal May Expose IPhone Flaws
[T]he Apple chief executive's fetish for form over function has its downside. Not everybody, it turns out, is indifferent to whether their smartphones can actually make phone calls. … Verizon Wireless could have snagged the original iPhone contract four years ago, but it passed. It did so not because of the iPhone's flaws, which were then unknown, but because Apple was insisting on terms that it could not accept. … The Apple-AT&T marriage has been a public relations disaster - for AT&T. Its network was quickly overwhelmed, in part because it was subpar, and in part because iPhone owners … used astonishing amounts of data: 15 times more than the average smartphone user … And what was Verizon Wireless doing? Taking full advantage of AT&T's problems to trumpet the reliability of its own network. Network reliability, in fact, became its core selling point …
[T]he success of Android is what finally pushed Apple into the arms of Verizon Wireless, which got much better terms than AT&T. When I asked a spokeswoman for Verizon Wireless who was going to control the customer, she told me that iPhone users who were having problems would take their phone to the nearest Verizon Wireless store, not the Apple genius bar. Verizon Wireless does not appear to have promised the guaranteed subsidy, the way AT&T did. … Apple needed Verizon Wireless more than Verizon Wireless needed Apple. The deal the two companies cut reflects that fact. … Verizon Wireless insists that its network is up to the task of handling all that data its iPhone customers will be clamoring for. But clever developers keep coming up with new ways to use even more data than anyone ever dreamed of. … Another possibility is that the Verizon Wireless network will hold up fine but that the iPhone will keep dropping calls because of its own inherent compromises.
[T]he success of Android is what finally pushed Apple into the arms of Verizon Wireless, which got much better terms than AT&T. When I asked a spokeswoman for Verizon Wireless who was going to control the customer, she told me that iPhone users who were having problems would take their phone to the nearest Verizon Wireless store, not the Apple genius bar. Verizon Wireless does not appear to have promised the guaranteed subsidy, the way AT&T did. … Apple needed Verizon Wireless more than Verizon Wireless needed Apple. The deal the two companies cut reflects that fact. … Verizon Wireless insists that its network is up to the task of handling all that data its iPhone customers will be clamoring for. But clever developers keep coming up with new ways to use even more data than anyone ever dreamed of. … Another possibility is that the Verizon Wireless network will hold up fine but that the iPhone will keep dropping calls because of its own inherent compromises.

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