“For most iPhone owners, trading up to the 5C is ‘free’ due to Apple’s reuse and recycle program,” Gassée writes. “I just took a look at the T-Mobile site where – surprise – the 5C is ‘free’, that is no money down and 24 months at $22 – plus a $10 ‘SIM Kit’ (read the small print.) You can guess what AT&T offers: 24 months at $22/month (again, whip out your reading glasses). Verizon is more opaque, with a terrible website. Sprint also offers a no-money-down iPhone 5C, although with more expensive voice/data plans. This is an interesting development: less than a week ago, Apple introduced the iPhone 5C with a “posted price” of $99 – “free” a few days later.”
Gassée writes, “After much complaining to the media about ‘excessive’ iPhone subsidies, carriers now appear to agree with [Asymco’s] Horace Dediu who sees the iPhone as a great ‘salesman’ for carriers, because it generates higher revenue per user (ARPU). As a result, the cell philanthropists offer lower prices to attract and keep users – and pay Apple more for the iPhone sales engine.”
Read more in the full article here.