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iPhone activate handset subsidies war three major carriers profit shrink

Todays Date: December 10, 2018

On October 21 Beijing time message: United States media reports, the United States three major mobile operators is about to release third quarter results. Due to the iPhone handset subsidies war sparked a field, the three operators will face severe loss of profits.

The industry expected AT&T and Sprint Nextel, Verizon Communications Company margins will decline. In addition to high handset subsidies, because of the economic downturn, more consumers are expected to be more cautious on the purchase of additional services such as data.

Traditionally, in order to encourage consumers and operators to sign a long-term contract, operators for new handset subsidies, however, the new version of the iPhone and AT&T company subsidies elevating to a whole new level. In July, the new iPhone when listing price only $ 200, beyond all expectation. However, a low price, but at the cost of subsidies AT&T, Apple still earn enough profit.

AT&T company Act makes Verizon, Sprint Nextel, follow competitors, imposing high subsidies on mobile phone (cool iPhone accessories). Although it may attract more new users, but is undoubtedly would hurt profits in the short-term.

Yuehan•huodulike, analyst of UBS said that high handset subsidies as a direct consequence of all the operators ‘ profit margins decline. In addition, iPhone (accessories for iPhone) price cheap led to sales douzeng, but for profit data for AT&T, this is more bad news.

McCormack forecasts, analyst at JP Morgan Chase Bank, AT&T three-quarter margins would appear “alarming decline”, probably from the second quarter fell from 41.2% of. He is expected to say, 45% AT&T operating profit this year will come from the mobile (best iPhone cases) communications business.

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