MobileRead Forums - View Single Post - The Carriers should just say NO! to Apple.

SeaKing · 01-26-2012, 05:00 PM

The Carriers should just say NO!

For carriers, the iPhone is a bittersweet drug
by Roger Cheng January 26, 2012 6:51 AM PS

"Could the wireless carriers actually be addicted to the iPhone?

By now, it's well understood that the iPhone is a double-edged sword for the wireless carriers. On one side, Apple's smartphone is a pricey device to carry, requiring an unusually high subsidy that carriers must pay to keep it affordable enough for the masses. On the other, it leads to more loyal customers who pay more each month.

Furthermore, the telecom companies get to wrap themselves in the hip vibe that Apple brings to its products and partners, and can you put a price on being cool?

Apparently, you can, and it's a steep one. The dilemma for the carriers is that with each successful quarter of iPhone sales, there is a corresponding hit to their profit as a result of the extra subsidies paid out, as illustrated by Verizon and AT&T's fourth-quarter results. (Sprint Nextel hasn't reported yet, but will likely see a similar impact.)... "

http://news.cnet.com/8301-1035_3-573...CmoreStories.0

Personally, I think my relatives and friends are crazy to pay for an iPhone as much as they do. I didn't know the carriers were crazy too.

01-26-2012, 05:00 PM	#1
SeaKing Frequent Flier Posts: 1,282 Karma: 2058993297 Join Date: Oct 2011 Device: KB kindle aboard, Galx Tab 7.0 Plus, trying out Droid 1 as mini-tab	The Carriers should just say NO! to Apple. The Carriers should just say NO! For carriers, the iPhone is a bittersweet drug by Roger Cheng January 26, 2012 6:51 AM PS "Could the wireless carriers actually be addicted to the iPhone? By now, it's well understood that the iPhone is a double-edged sword for the wireless carriers. On one side, Apple's smartphone is a pricey device to carry, requiring an unusually high subsidy that carriers must pay to keep it affordable enough for the masses. On the other, it leads to more loyal customers who pay more each month. Furthermore, the telecom companies get to wrap themselves in the hip vibe that Apple brings to its products and partners, and can you put a price on being cool? Apparently, you can, and it's a steep one. The dilemma for the carriers is that with each successful quarter of iPhone sales, there is a corresponding hit to their profit as a result of the extra subsidies paid out, as illustrated by Verizon and AT&T's fourth-quarter results. (Sprint Nextel hasn't reported yet, but will likely see a similar impact.)... " http://news.cnet.com/8301-1035_3-573...CmoreStories.0 Personally, I think my relatives and friends are crazy to pay for an iPhone as much as they do. I didn't know the carriers were crazy too.