AT&T is looking to pick up smartphones that will require it to provide lower subsidies, according to comments from AT&T Mobility CEO Ralph de la Vega.
Speaking at a conference, de la Vega said that subsides are eating into margins. This is one of the reasons that profit on the iPhone until 2015. To address these issues, AT&T will be looking at devices that it can offer with lower subsidies but still be attractive to users.will not be turning a
“We have to watch subsidies and make sure that we bring devices to market that customers love and will keep and have low subsidies,” de la Vega said, according to Fierce Wireless.
He mentioned the Lumia 900 and X as devices which fit into this category. Nokia is desperate to get back in the United States and the Lumia was made with relatively cheaper materials, so it was able to land in the United States at the $99 price tag and AT&T didn’t have to shell out too much. HTC has always been very carrier-friendly too, so it seems reasonable that its subsidies are low.
The CEOs can say what they want but the rubber will really meet the road when we see the next iPhone. It’s been reported that Apple’s devices get about $400 or so per iPhone in subsidies and it will be interesting to see if any carrier won’t provide that with the fifth version this Fall.
The $199 entry-price point for an iPhone is pretty much standard now and those not willing to provide that may suffer. Think about it: if you’re a cell phone free agent and want an iPhone, would you want an AT&Tfor $299 or would you prefer to pay $100 less for that same model on Sprint or Verizon?
The carriers can throw its weight around on subsidies with nearly every manufacturer besides Apple but it will be interesting to see what happens with the Galaxy S III. We expect most – if not all – of the major carries to pick it up and I think the pricing will be telling about what we can expect in subsidies moving forward.
[Via Fierce Wireless]
Sell Your Old Cell Phone for Cash
Select your device below to begin:
Buy a New Cell Phone
Best Sellers from AT&T
New Releases from AT&T
See all cell phones from AT&T
Best Sellers from Sprint
New Releases from Sprint
See all cell phones from Sprint
Best Sellers from Verizon
New Releases from Verizon
See all cell phones from Verizon