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Technology Stocks : Apple Inc.
AAPL 262.68-1.7%12:23 PM EST
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To: slacker711 who wrote (165385)2/5/2014 10:18:32 AM
From: Kurthend2 Recommendations

Recommended By
CHRIS LINELL
HerbVic

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Slacker,

Re: FWIW, Dan Hesse did say today that the subsidy model isnt going away.

A few days ago I helped my mother buy a new iPhone through AT&T. She was able to get a gold 5S, 16 gb, unlimited text and talk, with 300mb of data (she doesn't need much data). Two-year contract. The cost of the phone was $62.50 and a monthly charge of $80. Plus, they gave a $100 credit for changing from Verizon.

Although they didn't call it a subsidy, I think AT&T charged an extra $5 per month for the reduced price of the phone. No matter what they call it (subsidy or not), the customer will pay for the phone via extra cost of the contract.

Kurt
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