Analyst: Apple iPhone benefits from carrier rate war

“AT&T’s rivals have become more aggressive about their pricing, and that — paradoxically — could be good for Apple (AAPL), according to Kaufman Bros.’ analyst Shaw Wu,” Philip Elmer-DeWitt reports for Fortune.

“According to Wu, evidence shows that it’s the high cost of AT&T’s monthly service plans, not the cost of the devices themselves, that is the limiting factor keeping iPhone sales from growing faster than they are,” Elmer-DeWitt reports.

“He believes Sprint and T-Mobile’s price cuts will boost their lagging smartphone sales, which will in turn put pressure on AT&T and Verizon to cut their rates — to the ultimate benefit of iPhone owners,” Elmer-DeWitt reports.

Full article here.

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