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Joined Nov 11, 2007
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Apple’s iPhone Pricing Seen Slipping to the Benefit of Wireless Carriers

Jamie Sturgeon

Long coveted by consumers, the iPhone has come to be quietly begrudged by some partner wireless operators, who, owing to the device’s overwhelming popularity, pay Apple Inc. far higher prices per unit than they do on other smartphones.

Yet some say a shift is afoot that could restore a degree of power to carriers and in the process deliver to their investors a cut of the windfall now enjoyed by Apple shareholders.

Analysts at BMO Capital Markets said in a note Monday they believe unit costs for Apple devices are coming under pressure as new competitors nip at the iPhone’s heels and changing demographics in the smartphone market start to favour lower-cost handsets.

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