Wednesday, May 9, 2012
iPhone 5 Rumors: Will New iPhone Be the Last $200 Smartphone?
Apple’s (NASDAQ:AAPL) upcoming new iPhone is expected by many to be one of the last, if not the last “superphone” releases of 2012, given its rumored October 2012 launch date. It may also be the last smartphone ever available at a price point lower than $200.
According to the Wall Street Journal, America’s leading carriers – AT&T (NASDAQ:T), Verizon Wireless (NASDAQ:VZ) and Sprint (NASDAQ:S) are expected to take affirmative action against the standard smartphone contract.
This may put a stop to subsidized pricing, an arrangement which lines the pockets of the manufacturer (in this case, Apple) yet doesn’t really bode well for a carrier’s bottom line. The iPhone has been singled out by analysts and carrier executives alike due to the numerous side agreements with Apple and the high cost of the iPhone itself, which is at $750 for the 4S.
As early as now, wireless carriers are trying to make it more difficult for users to opt for an upgrade before their standard 2-year deal runs out. Upgrade fees at AT&T and Sprint are now $36, up from $18, while Verizon finally imposed their own upgrade fee of $30.
This, however, may not be enough to recoup losses caused by subsidization and the rapid increase in the number of consumers opting for an early upgrade.
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