I have no clue about the details of the contract, but let's consider the two scenarios:
1. Verizon caves and includes google wallet. They lose some revenue from ISIS, but still make money selling the phones and getting people locked into new 2 year contracts.
2. Verizon throws up their hands, refuses to sell the phone and all that stock goes to resellers (where hopefully they would sell for less than the full retail, I don't see them selling ALL those phones at full retail). Verizon loses revenue on the phones, they lose 2-year contract renewals, and they STILL lose any possible ISIS revenue.
I'm no business major, but if they think #2 is a better choice, they are . This is akin to a young child stubbornly refusing to go to bed even after they've already lost tv privileges and other consequences which started their tantrum and refusal to go to bed in the first place.
Seriously, Verizon, if you're reading any of this, stop puffing out your chest and screwing over your customers and sell the damn phone.
What happens when as part of option 1, you have a contractural obligation to support ISIS, with a lot of money in penalties if you don't (or future business, etc)?
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