Summary
The planned availability of the Palm Pre and Storm2 to Verizon Wireless's subscribers is another example of the continually changing "coopetition" between mobile operators and device vendors. The balance of power between these two categories of firms is by no means uniform.
Analysis
Over the past almost two years AT&T has needed Apple more than the reverse, while in contrast Palm needs Verizon Wireless more than this operator is dependent on Palm. The differences lie in the respective market positions of the two device vendors. Apple's consumer brand and innovative capabilities ensured that it was in a position of strength in negotiations with mobile operators for exclusive distribution arrangements for some period of time. In contrast Palm is very dependent on the Palm Pre in its attempts to restore its former glory. In this endeavor Palm can hardly afford to rely exclusively on Sprint over a long period of time for the success of the Pre in the marketplace, given the well known problems of this operator. In assessments of the relative power of device vendors and mobile operators for market influence - for example, Nokia's Ovi store that puts it into competition with the same operators who may also be selling its devices - it is apparent that there is no one scenario or one outcome that will emerge in terms of whether mobile operators or device vendors, or other participants such as Google, will have the greatest influence over the market and customers' attitudes and behavior.
