Stay connected:
Submitted: July 24, 2012 - 9:51pm
Originally published: July 24, 2012
Last updated: July 24, 2012 - 9:57pm
Originally published: July 24, 2012
Last updated: July 24, 2012 - 9:57pm
Source:
CNNMoney
Author:
David Goldman
Location:
Verizon Wireless, Basking Ridge, NJ, United States
A curious trend has developed in recent quarters: When iPhone sales fall, business improves for AT&T and Verizon. What gives?
Carriers pay heavy up-front subsidies to bring the cost of most smartphones down to $200 for their customers. Apple commands the highest subsidies for the iPhone. Since many potential iPhone customers are now in a holding pattern, waiting for the next iPhone to debut, iPhone sales have steadily declined since last fall. As iPhone sales slump, the amount of money AT&T and Verizon pay Apple up front has fallen, improving their margins. But telecom analysts think that trend is about to reverse course. With a highly anticipated 4G-LTE iPhone expected to launch in October, wireless margins will probably plummet in the fourth quarter.
Links to Sources
- Login or register to post comments
- Email this page
Related
- The iPhone Is Still a Strong Seller for AT&T and Verizon
- Verizon rides iPhone boom too; but what about LTE?
- Apple iPhone Will Drag Down Telecom Profits
- Apple's stock is getting creamed by Verizon and AT&T
- AT&T wireline picture gets bleaker
- Verizon's Profit Rises 16% as Margins Improve
- The iPhone is a nightmare for carriers
- Verizon: no iPhone, no problem
- AT&T profit boosted by iPhone, video, Internet
- AT&T, Verizon Smartphone Sales to Pressure 4th-Quarter Earnings
- US operators face rising capital costs, slowing revenue
- For Telecom Firms, Smartphones Rule
- Will Verizon’s iPhone Shake Up the Mobile Market? Not So Much.
- Smartphone sales rise as average cost drops to $135
- Why AT&T Wants to Keep the iPhone Away From Verizon
Location
Javascript is required to view this map.
Ratings
Recommendation:
2
Informative:
0
Accuracy:
0
Login to rate this headline.