Tim Cook, faced with a question about carrier subsidies during the Apple earnings call, offered a reminder of all that the iPhone offers carriers. Apple, he concluded, is working on making the best product, which carriers “will be very motivated” to sell customers.
Apple CEO Tim Cook, during Apple’s fiscal third quarter 2012 earnings call Tuesday night, offered the nation’s wireless carriers, if not the industry, a reminder of the full extent of the iPhone’s value.
The iPhone, it’s well known, is a pricey smartphone for carriers to offer. Apple charges more for it than its competitors do for their devices, leaving the carriers—which like to offer subscribers tidy $199 price points—to pay out larger subsidies.
The incredible popularity of the iPhone, however, makes it a no-brainer for the carriers: they grin-and-bear the subsidy and look forward to two years’ worth of data plan payments. Although, even the latter hasn’t stopped them, more recently, from embracing strategies that will help them to lessen their reliance on the iPhone.
Apple CEO Tim Cook, during Apple’s fiscal third quarter 2012 earnings call Tuesday night, offered the nation’s wireless carriers, if not the industry, a reminder of the full extent of the iPhone’s value.
The iPhone, it’s well known, is a pricey smartphone for carriers to offer. Apple charges more for it than its competitors do for their devices, leaving the carriers—which like to offer subscribers tidy $199 price points—to pay out larger subsidies.
The incredible popularity of the iPhone, however, makes it a no-brainer for the carriers: they grin-and-bear the subsidy and look forward to two years’ worth of data plan payments. Although, even the latter hasn’t stopped them, more recently, from embracing strategies that will help them to lessen their reliance on the iPhone.
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