Apple Handling iPhone Warranties

Today’s issue of USA Today says that Verizon Wireless turned down an offer from Apple of exclusive distribution of the upcoming iPhone, because Apple had too many demands: a portion of the monthly fees and control over who could sell the phones. Jim Gerace, a Verizon Wireless v-p, told the newspaper that Apple demanded control of the relationship with iPhone customers, including sole discretion over iPhone warranty and replacement issues (although it’s not clear if that includes phones sold by Cingular). The remarks indicate the critical role that Apple’s retail stores will play in the iPhone roll-out, and hint at the additional burden that iPhones will place on the Genius Bars and sales staff. In the same article, a Cingular exec said the company will be handling wireless network problems for the phones.