Chris Krasowski

Apple Is Still Giving Its Competitors Headaches

Well of course $99 is the subsidy price, but this isn't just an iPhone specific thing. Every carrier in the world, on virtually every phone in the world offers some sort of subsidy. So whether you pick up an iPhone, a Pre, some Sony Walkman phone or a Nokia, your phone company is picking up part of that tab.

I don't believe a car analogy is effective in the same way as cell phones because it is not as if Exxon Mobil pays for half the car but then only lets you fill up at Exxon Mobil owned stations for the next 2-3 years and if you "roam" to other stations you pay twice as much per gallon.

The subsidy is part of the phone business and seemingly always will be.

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Chris