The iPhone may be great for Apple (AAPL), but the huge subsidies it requires makes it terrible...

|About: Apple Inc. (AAPL)|By:, SA News Editor

The iPhone may be great for Apple (AAPL), but the huge subsidies it requires makes it terrible for carriers, laments Nomura. Verizon's (VZ, VOD) incremental service margin easily outpaced AT&T's (T) until it began selling the iPhone, and AT&T's actually turned negative in Q4. Meanwhile, Sprint's (S) upcoming Q4 report is expected to show "over 800 bps of margin contraction."