AT&T unlikely to subsidize Apple iPhone

Apple Store“Wireless carrier AT&T is looking to use next month’s launch of iPhone as an important branding opportunity, but now appears unlikely to offer subsidies on the Apple handset, according to comments made during a recent AT&T investor gathering,” Katie Marsal reports for AppleInsider.

“‘There was a major focus on the launch of the iPhone, expected in late June (based on Apple’s latest comments),’ John Hodulik, an analyst with UBS, wrote in a report following the financial meeting. ‘While the company would not answer the vast majority of our questions, we were able to infer a couple of new data points,'” Marsal reports.

Marsal reports, “First off, said Hodulik, AT&T indicated that it plans to use the iPhone launch ‘as a branding event’ and that it will also increase its advertising dollars around the product to cement the ‘AT&T Mobility’ name in the market. The No. 2 U.S. wireless carrier added that it expects Apple to market the product aggressively through its own avenues, as well.”

Marsal reports, “The UBS analyst said comments made by AT&T management led him to believe the carrier will not subsidize the cost of Apple handsets, as has been widely rumored over past few months.”

Full article here.

[Thanks to MacDailyNews Readers “James” and “LinuxGuy and Mac Prodigal Son” for the heads up.]
iPhone certainly does not need to be subsidized.

26 Comments

  1. hmmmm…. a subsidy would have been nice but it won’t stop me and 10 million others from buying the iPhone ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
    -L

  2. The No. 2 U.S. wireless carrier added that it expects Apple to market the product aggressively through its own avenues, as well… starting with [cough] the keynote, where, we hope, Steve will spin his…uh, RD-thingy.

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