“Apple Inc. and Samsung Electronics Co. face a $3.9 billion challenge as they prepare to sell new marquee phones in the world’s biggest wireless market,” Bloomberg News reports.

“China’s state-run wireless operators are slashing subsidies they pay to make devices more affordable for consumers just as the biggest phone-makers are set to introduce upgraded products,” Bloomberg News reports. “After China Mobile Ltd. said it will cut subsidies by $2 billion, its competitors will lower payments by $1.9 billion, according to analysts’ estimates. China Telecom Corp. said yesterday it will cut spending without giving a figure.”

Bloomberg News reports, “‘The reduced carrier subsidies and rising local competition will affect consumers’ reception for the new phones,’ said Tay Xiaohan, a Singapore-based analyst with International Data Corp. ‘The impact will be greater on the higher-end smartphones in the market, which the Note 4 and iPhone 6 fall under.’”

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