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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: pyslent who wrote (163060)12/16/2013 8:15:40 PM
From: MGV  Read Replies (1) | Respond to of 213173
 
You may see volume commitments being the driving force behind iPhone sales but, in my opinion, sales are driven by carriers' recognition of the high correlation between iPhone sales and increased subscriber data usage. That is the carrot. If you understand that motivation to offer the iPhone, you understand that the carrot of increased data sales is the main driver rather than a stick/contractual commitment.

Verizon is exhibit one. Docomo is a more recent exhibit two. China Mobile is a soon to be exhibit three.

All three recognize that the most valuable subscribers are attracted to the iPhone.