Technology Stocks : Apple Inc.


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To: Moonray who wrote (139714)8/25/2012 1:42:27 PM
From: Cogito3 Recommendations  Read Replies (1) of 154145
 
Even though the relationship has been profitable for all, reports are out that AT&T (NYSE: T) andVerizon Communications (NYSE: VZ) might be parting ways with Apple (NASDAQ: AAPL) due to the heavy costs of subsidizing the iPhone sales. As a result, Sprint-Nextel (NYSE: S) could prove to be a desirable acquisition for Apple.
Does anyone really believe that AT&T or Verizon will just up and stop selling their best selling phone?

Yes, the data plans have become more expensive, but that affects all smartphones across the board - not just the iPhone. The higher data rates seem to me to be a way of mitigating the extra costs of selling iPhones. They are a way of restoring profits in the face of customer demand for a phone that costs them more upfront.
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