Apple actually approached Verizon to collaborate in the making of the iPhone. However, Verizon had some conditions that were not liked by Apple. Thus they reached out to ‘Cingular Wireless’(AT&T Mobility)with the proposal. And, both parties agreed to all the terms and conditions and started to work on the project secretively. After working for over 2 and a half years, Apple unveiled the iPhone. The estimated development cost of the iPhone was about 150 million USD.
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