Why did U.S. Cellular say no to the iPhone?

U.S. Cellular's announcement last week that it said no to Apple's offer to sell the iPhone came as something of a shock. What carrier, at this point in time, says no to the iPhone, a phone that sold 4 million units in its first weekend of availability?

U.S. Cellular's decision highlights something that may be hard for a lot of people in the industry--and for consumers at carriers that don't have the iPhone--to swallow: The iPhone is not right for every carrier. It might not be right for the brand, for the network and--perhaps most of all--it might not be the right fit financially. U.S. Cellular said no to the iPhone because the revenue and profit U.S. Cellular would generate from selling the iPhone likely wouldn't be enough to justify the subsidy the carrier would have to pay Apple (it's reported to be around $450 per device). The bottom line appears to be that U.S. Cellular weighed the costs and benefits of the iPhone and decided it wasn't worth it. The iPhone has certainly helped AT&T attract customers and has given Verizon a boost. Sprint clearly hopes it will do wonders for the company's postpaid subscriber numbers. But it's not for everyone.