Quote:
Originally Posted by HeffeD
Sounds like subsidy to me then...
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I'd only consider it a subsidy if some of the hardware cost is covered by part of the monthly service fees. In this case, I believe the buyer is paying the entire hardware cost up-front. If Apple is, indeed (and I'm not contesting the claim, I have no idea if it's so), getting a monthly kick-back from AT&T, but it's not defraying the cost of the actual hardware, I'd call that something other than a subsidy. A stipend for temporary exclusive rights to sell the thing, maybe.
