Verizon Wireless Has Commitment Issues With Apple

Is the iPhone becoming the smartphone world's Alex Rodriguez?

One data point suggests the aging all-star device may be struggling to put up the sales numbers to justify its gigantic contract. Like some rivals, Verizon Wireless appears to have made a multiyear, multibillion-dollar commitment to buy iPhones in order to get Apple's smartphone onto its network. Now, the No. 1 U.S. carrier by subscribers doesn't appear to be selling as many of the devices as it thought it could. In the short term, any shortfall could mean Verizon Wireless faces some sort of contract penalty. More important will be the likely impact on future contract negotiations with Apple. If the iPhone's sales momentum flags, watch for Verizon Wireless to throw some heat in its matchup with Apple's smartphone slugger.