(link via David Chartier)
This is unconfirmed and based on unofficial sources, but apparently it’s because of disappointing Pre sales. That’s perfectly reasonable. But the article (the original is actually here, but it’s unreadable) also cites this from their unnamed source of “people close to the discussions”:
Another snag is that Verizon wants VCast, its applications and mobile media download service, to be featured heavily on its phones. This is in direct conflict with Palm’s app store, according to these sources.
Verizon has always had their heads so far up their own asses regarding feature-stripping and phone software that this is completely believable. And, as David Chartier noted, it doesn’t bode well for the prospect of a Verizon iPhone.
We can all say this is stupid for Verizon, but really, it makes some sense. Apple has completely cut AT&T branding and any carrier-specific applications or features out of the iPhone experience. There’s nothing tying us to AT&T at all. Even though it’s great for us in the long term, it puts AT&T in a terrible position.
Maybe Verizon is willing to forgo the iPhone, and other modern smartphone platforms including webOS and Android devices, to avoid putting themselves in that situation. If they can cover the continued loss of business with gains in other areas, I can’t say I blame them.