New Verizon iPhone: Paying Apple “double if not triple the subsidies”

By Posted 31 Mar 2010, 15:34

For those of you still eager to hear more news regarding a new CDMA iPhone on Verizon’s network, we have an update for you now. A follow up on the WSJ reveals that the move may not go ahead due to high subsidy costs.

A recent note from Kaufman Bros. analyst Shaw Wu has suggested that Verizon may be put off entering into any agreement with Apple, as a result of the long term costs.

The report states that Verizon may need to pay Apple double if not triple the subsidies that it currently pays other smart phone providers.

With this both in Verizon and Apple’s mind, we may even see a release on T-Mobile or Sprint, as they are far more likely to agree to Apple’s subsidy demands.

What are your thoughts on this? Are Apple charging too much for the iPhone? Full article through the link.

  • Ryan

    Apple needs to stop being so greedy & controlling. Double or triple subsidy cost? They are all rich enough already and a Verizon / Apple iphone deal would be THE biggest cellular undertaking to date. Arguably the sleekest / most innovative handset in the past several years joined with the strongest and most reliable network. In my opinion this should have happened years ago. But when you have two companies who are both ridiculously arrogant and overly controlling the deal falls through. At this point, the fact that I've been waiting for a Verizon Iphone this long combined with the release of these amazing HTC Android phones (available on many carriers!) – Apple can simply keep the iphone. The long list of factors that were groundbreaking on that device years ago are standard on phones today. I'm two seconds away from dropping Verizon and getting an EVO on Sprint to save money.

  • Gin

    YAY! EVO! I can't wait! Weeeeeeeeeeeeeeeeeeeee!