“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.'”
Read more in the full article here.
I doubt it. I plan to buy my iPhone 6 without a subsidy.
Apple could easily decide to offer these phones with a payment plan.
it is not a subsidy. the carriers get their money back, and more, over time. they are in business to make money, not subsidize customers.
Er…no.
If you want an iPhone, you will get one, subsidised or not. They’re not in the cheapo business.
I bought an iPhone 3G on launch day in Australia. I paid nothing up front and opted for the carrier’s payment plan which ran for 12 months. The monthly cost for the phone was shown separately on the contract – the finance was organised by the carrier but the finance company was noted on the agreement.
All phones are sold in Australia this way – for the consumer it works exactly like a carrier-subsidy except that when the finance term is up you own the phone.
What’s not to like about that?
This is how UK networks are starting to operate. I’ve just changed my O2 contract from one which cost me around £50/month with an iPhone 5, unlimited SMS/calls, and 1Gb of data, to one costing £25/month, unlimited SMS/calls and 6Gb of data; when the 5.5″ iP6 arrives I’ll be able to chop my 5 in and arrange whatever the cost of the phone is per month, or pay the full cost, less the discount for the old phone.
Much better than having both bundled together