Originally Posted by coachmark2
It's proving to be a lousy business model for phone companies, and is raising red flags on Wall Street. "Can Apple continue to roll through industry after industry, soak up all the profits, and leave everything it touches as a smoking wreckage?" one analyst asked in the Los Angeles Times. "They've done it with music and handsets, and now they're doing it to the carriers."
To be fair though, the carriers make up for it in locking people down with contracts and expensive data plans.
In Canada for example, the 6GB data plan costs $30 a month, on a 3 year contract, that's an extra $1080 from data alone. The average "smart phone" plan is $60 - $70 a month.
I would've thought that carriers got the iPhone's cheaper though, and had a wholesale agreement? Considering they only cost $200 to produce, and carriers are buying them in the millions, I find it hard to believe that they are paying $600 per phone, and if they are, well, no wonder Apple is laughing all the way to the bank.Edited by 2010rig - 2/20/12 at 11:18am