“If Apple ends its exclusive carrier agreement with AT&T next year, it will likely mark the end of its estimated $450 carrier subsidy for the iPhone, a new analysis has forecast,” Sam Oliver reports for AppleInsider.
“In a new note to investors, analyst Brian Marshall with Broadpoint.AmTech said that the ‘sweetheart’ carrier subsidy provided by AT&T for the iPhone would not be attainable with Verizon. He believes that the iPhone will be added to the Verizon network in the second half of 2010, but not without consequences,” Oliver reports.
“A non-exclusive iPhone, Marshall forecast, would command roughly a $300 carrier subsidy,” Oliver reports. “But he believes that any losses would be made up in volume, as Verizon is predicted to sell roughly 14 million iPhones in the 2011 calendar year. With an average selling price of around $500, that would be another $7 billion in revenue for Apple.”
More in the full article here.