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The iPhone 4S (AAPL) is likely to start off as a margin killer for Verizon (VZ), AT&T (T)...

The iPhone 4S (AAPL) is likely to start off as a margin killer for Verizon (VZ), AT&T (T) and Sprint (S) in the first quarter of sales for the new phone, Wells Fargo says, hiking expectations for VZ iPhone activations by 29% to 4.5M but trimming a penny off expected Q4 EPS. Because of subsidies given to consumers, the more iPhone demand, the bigger the hit to the quarter’s bottom line.
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Comments (5)
  • chabig
    , contributor
    Comments (562) | Send Message
     
    I think that article is talking about the current iPhone--the iPhone 4S.
    23 Dec 2011, 04:06 PM Reply Like
  • MarkS2002
    , contributor
    Comments (203) | Send Message
     
    Yeah, the 5 will likely kill their 3rd quarter in '12. How's a dishonest phone company supposed to make a living? I guess they will just have to give the employee screw another turn.
    23 Dec 2011, 06:06 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (544) | Send Message
     
    Selling iPhones is a margin killer for carriers ?

     

    Not with a 2 yr data plan subscription it isn't

     

    We presume the carrier matches revenue with costs, and writes off the hw subsidy over the length of the gauranteed rev stream
    25 Dec 2011, 02:24 PM Reply Like
  • ralfie3
    , contributor
    Comments (8) | Send Message
     
    This is the old story: LOSING MONEY BUT MAKING IT UP IN VOLUME. RBPIII
    26 Dec 2011, 07:05 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (544) | Send Message
     
    "This is the old story: LOSING MONEY BUT MAKING IT UP IN VOLUME. RBPIII "

     

    You'll have to explain to me RBP3, how selling the iPhone (with a hw subsidy) is a losing proposition when a $30 monthly data plan is added to the voice subscription

     

    Have you looked at ATT and VZ financials recently ?
    27 Dec 2011, 08:41 AM Reply Like
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