As Phone Subsidies Fade, Apple Could Be Hurt

US wireless carriers are making unexpectedly fast progress moving their customers away from subsidized phones, a shift that could put further pressure on sales of expensive devices like the iPhone.

Apple charges more for its phones than many companies charge for low-end laptops. Until recently, American subscribers have been insulated from the sticker shock by carriers that subsidized hundreds of dollars of the cost with hopes of recovering it via two-year service contracts. Increasingly, though, carriers are moving toward a model where customers pay full cost for their phones, typically under installment plans. Smaller rival T-Mobile US sells all of its smartphones that way. The fast adoption of subsidy-free plans is setting up a real world test of consumer behavior: Will Americans continue to buy expensive phones if they are aware of the full price they are paying?