Not true. Just like the myth that Steve first approached Verizon. Both are incorrect.
Apple approached first Cingular in early 2005, then Verizon in mid 2005, because they were the two largest US carriers.
They continued to make contact with Verizon off and on for almost a year, but with no working model, Verizon had little interest.
For that matter, AT&T (Cingular) was in no rush either. They didn't sign a contract until mid 2006, long after first being approached, and halfway through iPhone development.
WSJ iPhone History
Wired iPhone History
(Plus others, now no longer available, but which I have stored.)
Steve chose AT&T because they were dominate & had the most markets. Google will confirm that for you.
Apple "chose" AT&T because they were the only major carrier willing to make a deal, sight unseen. That's why Apple was willing to bend to AT&T's demands for an unheard of multi-year exclusive and approval input for high bandwidth apps.
(
Apple, Cingular claim victory over each other.)
Unfortunately, AT&T didn't have much of a 3G network at the time, and actually delayed 3G even more to backfit their EDGE system to go several times faster so that the first iPhone wouldn't be ridiculed for only having a 48 - 64Kbps connection. (If the first iPhone had been on Verizon, it would've had 3G and GPS for location services like all VZ smartphones of the time.)
(
PiperJaffray explained lack of 3G - to save cost - and correctly predicted margin and coming price drop.)
Apple's big mistake was the long exclusive, which was a major factor in letting Android gain a foothold in the US.
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