[Hamp]

Turns out your carrier is actually losing money on that exorbitant iPhone contract you just signed. Apple charges carriers so much for the privilege of selling iPhones that service providers can't turn a profit. The 4S that cost you $200? AT&T paid around $600, eating $400 every time you upgrade. It's proving to be a lousy business model for phone companies, and is raising red flags on Wall Street. "Can Apple continue to roll through industry after industry, soak up all the profits, and leave everything it touches as a smoking wreckage?" one analyst asked in the Los Angeles Times. "They've done it with music and handsets, and now they're doing it to the carriers."

Here's the article source:
Phone companies lose $400 for each iPhone sold - msnNOW

Thing is, every smartphone carrier does this. The money is made off the contract and data plan, NOT the hardware itself. Carriers pay to get the hardware but make money from the services they provide.

[jeffrey1027]

interesting

[ugahairydawgs]

Yet they all line up sell it.

[GingerSnapsBack]

I've seen this article on CB somewhere else. Carriers lose their *** on phones all the time and yet they still sell them. If a carrier like AT&T or Verizon thinks they can ditch the iPhone in favor of only selling Android or BB, they're insane. They'll see their bottom line curl up and die when their customers leave.

[lssanjose]

They make up the cost when you live through the two year agreement; carriers lose on the act of subsidization, anyway.

Sent from my Galaxy Nexus using Tapatalk

[Vindicators]

Turns out your carrier is actually losing money on that exorbitant iPhone contract you just signed. Apple charges carriers so much for the privilege of selling iPhones that service providers can't turn a profit. The 4S that cost you $200? AT&T paid around $600, eating $400 every time you upgrade. It's proving to be a lousy business model for phone companies, and is raising red flags on Wall Street. "Can Apple continue to roll through industry after industry, soak up all the profits, and leave everything it touches as a smoking wreckage?" one analyst asked in the Los Angeles Times. "They've done it with music and handsets, and now they're doing it to the carriers."

Here's the article source:
Phone companies lose $400 for each iPhone sold - msnNOW

Thing is, every smartphone carrier does this. The money is made off the contract and data plan, NOT the hardware itself. Carriers pay to get the hardware but make money from the services they provide.

Every contract phones are sold that way, that's why it's called "subsidized".
iPhone 4S retail price is $649, $199 for contract.
HTC Rezound retail price is $649, $199 for contract.

It's actually the same. Maybe other manufacturers give carrier heavily discounted price to push their phones but Apple don't.

[RadioDude]

don't feel so bad for the carriers losing money on the actual phone,as they well make up for it and more on each and every plan,accessories and more...

[lssanjose]

don't feel so bad for the carriers losing money on the actual phone,as they well make up for it and more on each and every plan,accessories and more...

Don't remind me: I just wanted this phone, next thing I see is, the sales rep coming out with cases, screen protector, mount, Bluetooth headset, etc

Sent from my Galaxy Nexus using Tapatalk