Apple could be losing control of wireless carriers, component suppliers

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While Apple's iPhones, iPads and Macs remain gold standards, signs the company is losing some of its edge in the smartphone market suggest its clout with business partners could wane.

Recent comments from executives at phone carriers and component suppliers show they see room for at least some shift in the balance of power. In particular, a move by No. 4 US mobile service provider T-Mobile to stop subsidizing smartphones around the time it starts selling the iPhone in three months’ time may put pressure on Apple, especially if other carriers follow the example. U.S. phone companies mostly subsidize handsets in return for two-year contracts. If customers start paying the full price for an iPhone, they might look for cheaper alternatives. Asked whether carriers are now in a better position to negotiate lower prices with smartphone makers such as Apple, Fran Shammo, chief financial officer of Verizon Communications, said having four strong platforms -- Apple, Android, Windows and BlackBerry -- is leading to more competitive pricing. "The more operating systems we have to compete in this area the better the competition," he said.


Apple could be losing control of wireless carriers, component suppliers