Phones Review

Verizon iPhone Will Cost Carrier A Fortune

Under: Apple iPhone, Verizon
Date: January 11th, 2011

There are a large number of smartphone users who want the iPhone to come play with Verizon, and Verizon wants the iPhone on their network, and hopefully later today the Big Red will make that announcement we have all been waiting for the comming of the Verizon iPhone, but at what price?

According to an article over on Cnet by Don Reisinger, Bloomberg is apparently reporting that the Verizon iPhone could well cost the Big Red a fortune in subsidies in its first year mounting to millions of bucks.

Apparently John Hodulik an analyst for UBS has stated that Verizon could shift somewhere in the region of 13 million CDMA iPhone units this year with each iPhone carrying a subsidy of $400 which overall could mean that the Big Red could pay $5.2 billion in subsidies…ouch.

On the other hand, James Ratcliffe, a Barclays analyst has said he predicts Verizon to shift 9 million CDMA units with a subsidy of $350 which would mean Verizon would pay $3.2 billion in subsidy expenses this year, which is still quite a hefty price to have the iPhone don’t you think?

Having said that, I’m fairly sure even with the heavy billion buck subsidy bill Verizon wont lose out by having the Verizon iPhone and will no doubt make a fortune in the process, can’t say the same for AT&T though as it’s pretty clear they are about to say goodbye to their exclusivity over the iconic iPhone.

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