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. Just goes to show you. AT&T, bigger, and dumber than ever. “If we own everything, then we don’t have to think, they will have to come to us for what ever!”

    AT&Ts; game plan, $$$$$ oh, yes and $. Custormer service, what is that, will it make us more money with out costing anything???

    en

    MDN word subject as in I am being treated like a medevil subject with AT&T!!

  2. Expect Apple to have a surprise at the iPhone announcement, either featurewise or pricewise. My only problem with the iPhone currently is that 8gigs is just not enough for the iPod portion of the iPhone for a combination of songs, TV shows, and movies. It is just not enough! So many people say that they want to only carry around one device, and the iPhone is perfect, except the iPod portion is way too lean spacewise. This also seems to be the device where we all have to get in the habit of charging every single night, even with just basic use, as the demands of battery life will be taxed and more critical because of the phone side of things.

  3. “…the carrier will not subsidize the cost of Apple handsets, as has been widely rumored over past few months.”

    There have been plenty of people wishing for subsidies, or scoffing at their absence, but I have not seen “wide rumors” that implied that there was even a chance for a subsidy.

    As others have said, the iPhone needs no subsidy, but ATT better have a VERY attractive service package or it won’t matter how cool the iPhone is. Especially since their over-air data system is second rate by today’s standards.

    In other words, I trust Apple not to screw the pooch with a bad product, but I can easily envision AT&T pissing off its customers.

  4. “John Hodulik, an analyst with UBS, wrote … we were able to infer a couple of new data points,'”

    Do they get special training to talk that kind of shit? WTF is a “data point” in the context of the Q&A?

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    Rock on Steve!

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