

The iPhone is a nightmare for carriers - bjdixon
http://money.cnn.com/2012/02/08/technology/iphone_carrier_subsidy/index.htm

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dalke
Oh, no! People really want an iPhone, and Apple knows it so can make a big
profit wringing money from the mobile phone service providers.

The companies want their high "EBITDA service margins", which were 40+% and
are now around 10%. Since they can't force Apple down, they are suffering, and
planning to make up for it by raising service fees on their users.

The shame! The sorrow! Take pity on poor Verizon (whose "profit [in 2011Q3]"
doubled during the last quarter, bolstered by customers attracted by its
portfolio of iPhone and Android devices."; they sold 4.2 million iPhones in
Q4). Remember sad AT&T ("profit [in Q3] of $3.6 billion", and 7.6 million
iPhones). Lend support to Sprint, whose "bid to lure subscribers to its
network is its unlimited data plan, which AT&T and Verizon no longer offer."
“The iPhone helped AT&T reverse the tide and boosted Verizon’s portfolio. It
is having a similar net-positive effect on Sprint as well.”

If only evil Apple hadn't come onto the scene and ruined the profit margins of
the phone companies!

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diminish
With iphone every carrier now claims they gained new customers or kept more of
existing, they all suffer in profits and they all hope to gain back in a
couple of years. and here comes removal of the unlimited data plans, the
increase of price for devices and plans. Apple is happy, carriers think they
ll be happy, and iphone buyers are the happiest. Is there something wrong in
this picture, or is this a non-zero sum game where mobile growth lures more
profits from elsewhere?

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shadesandcolour
Oh no. the carriers aren't getting as big of a profit margin as they
"deserve". Please. The prices and fees that the carries charge you to do
anything are more than enough to get them through this difficult time when
their margins are dropping but their subscriber rates are soaring and data
profits are through the roof.

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funkah
Good.

