Report: Apple losing power over carriers, subsidies changing? | iLounge News

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Report: Apple losing power over carriers, subsidies changing?

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By Phil Dzikiy

News Editor, iLounge
Published: Tuesday, January 29, 2013
News Categories: Apple, iPhone, Rumors, iPhone

Apple’s share of the smartphone market is expected to peak at 22 percent this year, according to a Reuters report, and cellular carriers may be in a position to negotiate more competitive prices. The report details how the strength of other smartphone operating systems may loosen Apple’s grip on the overall market. “The more operating systems we have to compete in this area the better the competition,” said Fran Shammo, chief financial officer of Verizon Communications, noting that Apple’s iOS now confronts Android, Windows, and Blackberry as strong platforms. Reuters also notes that T-Mobile USA plans to stop subsidizing smartphones when it begins to sell the iPhone, and other carriers are considering follow suit. “That’s something we’ve looked at on several occasions. I kind of like that idea,” said AT&T CEO Randall Stephenson. “It’s something we’re going to be watching.”

The report claims that a “less powerful Apple could be welcomed by telecommunications carriers and component suppliers that have grown accustomed to the tough terms Apple was able to exact thanks to its massive scale and leadership in the market.” Apple may already be anticipating the loss of subsidies and a future with lower-cost devices as it prepares a low-cost iPhone for release.

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