iPhone subsidy and minimum purchase requirements make it hard for Apple to secure new carriers

We’ve all heard about how strict Apple is when it comes to App Store guidelines, customization, and jailbreaking, so you may not be surprised to hear that it’s just as strict with the carriers it deals with. In order to carry the iPhone, a wireless provider must purchase a certain number of devices from Apple, which poses some problems for smaller regional carriers. These smaller carriers are also having problems with $600 iPhone subsidy.

According to a new report out of Bloomberg,

For smaller wireless-service providers, teaming up with Apple can be a double-edged sword. U.S. Cellular signed on last week to offer the phone after agreeing to sell $1.2 billion worth of handsets over three years. The company had long said that the handset costs too much; yet, not having the iPhone was costing it customers. Telefonica Czech Republic dropped the iPhone because it couldn’t afford the subsidy.

A low-cost iPhone would definitely help address these issues, but there’s still no way to know for sure if Apple is planning to release one.


Via: Mac Rumors

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