aapladay

TGIF: AT&T's Really Bad Week

ATT subsidizes the iPhone at a cost of about $3-400 a phone. They would lose money if they had to pay Apple another subsidy before they made back their money on the current subsidy. That is the reason for the 2 year contract. These aren't Razors folks.
I believe most of the outcry though is from people trying to short ATT and AAPL.
A contract is a contract.
I see they have 11,000 signatures so far. A lot, but out of the millions of iPhone users who are probably already on twitter, it is nothing.

Was the iPhone Deal Worth It for AT&T?

It will not be long for the increased revenue from the iPhone to help ATT. Remember they increased their fee's and that will, over the term of the contract, more than pay for the subsidy. Throw in an excellent dividend and this stock is just as much of a buy as Apple. I just hope they have better customer service than they had in the past.

Could iPhone Subsidies Be Apple’s Ticket to Mainstream USA?

I see no problem with it being subsidized. People can only get that price if they sign up for the lucrative contracte Apple wants. ATT subsidizes the iPhone, not Apple. That should drastically increase sales and Apples margins since they get the contract. Oh, and dont even think of crossing ATT by cancelling your contract and not paying the penalty! They are mean bastards! I had friends who worked for them, trust me.
But is this whole subsidy thing just a rumor then?