Apple Having Trouble Signing New Carriers Because of iPhone Subsidy and Minimum Purchase Requirements

ApplelogoApple is missing the opportunity to reach 2.8 billion wireless customers because of their stringent requirements around minimum purchases of iPhones and price subsidies, according to a report from Bloomberg.

In order to carry the iPhone, Apple has strict requirements for carriers. One such requirement relates to minimum purchase agreements, which regional U.S. postpaid carrier Cricket has had some trouble meeting this year.

Some smaller carriers, especially those in emerging markets, have difficulties paying the pricey subsidies that Apple's $600 iPhones require. The rumors about a cheaper, plastic iPhone could address some of these issues, especially for those countries where subsidies are nearly unheard of and customers routinely pay for their phones up front.

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.


Apple is rumored to be designing a lower-cost iPhone with a colored plastic shell, with one analyst expecting the device to be released this fall. This correlates somewhat with hints about future products that Apple CEO Tim Cook gave during his Q2 2013 earnings call last month.

Top Rated Comments

Stella Avatar
104 months ago
In other news, Tiffany & Co. is missing out on 200 billion consumers who cannot afford their high priced gold, silver and diamond jewelry.

Apple is not a luxury brand.
Score: 30 Votes (Like | Disagree)
Shrink Avatar
104 months ago
Apple is not a luxury brand.

Really!?

In the field of phones, laptops, tablets,etc., if Apple isn't a luxury brand, who is?:confused:
Score: 25 Votes (Like | Disagree)
bbeagle Avatar
104 months ago
In other news, Tiffany & Co. is missing out on 200 billion consumers who cannot afford their high priced gold, silver and diamond jewelry.
Score: 25 Votes (Like | Disagree)
lazard Avatar
104 months ago
Really!?

In the field of phones, laptops, tablets,etc., if Apple isn't a luxury brand, who is?:confused:

if you can buy it at Walmart, it's not a luxury brand.
Score: 23 Votes (Like | Disagree)
GoCubsGo Avatar
104 months ago
Requiring a minimum purchase seems silly to me. Having the iPhone set up with an exclusive carrier made since until the 2nd iPhone was released. After that, it is just a douche move by a major corporation. Apple should really drop the minimum purchase requirement and allow the iPhone on all carriers as long as the current hardware supports said carrier. What would the harm be in doing that?
Score: 17 Votes (Like | Disagree)
Stella Avatar
104 months ago
Really!?

In the field of phones, laptops, tablets,etc., if Apple isn't a luxury brand, who is?:confused:
iPhones are priced consistently with other high end phones.

Apple computers inners are made of standard components. Its laptops are based around the same price as gaming laptops ( but without the graphics - and less hard disc space ).

In 2013 Apple is a consumer brand. Not a luxury brand.

Does there need to be a luxury brand?
Score: 16 Votes (Like | Disagree)

Top Stories

flat imac 3d 3 teal

Reliable Leaker Hints Redesigned Colorful iMac to Debut at 'Spring Loaded' Event

Saturday April 17, 2021 4:43 am PDT by
Reliable leaker known as l0vetodream has hinted that Apple may debut its rumored redesigned and colorful iMac at its "Spring Loaded" event on Tuesday, April 20. In a tweet, the leaker posted an image of Apple's logo used for marketing the upcoming event and an image of the retro rainbow Apple logo alongside the colorful lineup of G3 iMacs. Apple leaker Jon Prosser previously reported that...
third gen Apple pencil leaked video

Video of Alleged Third-Generation Apple Pencil Leaks Ahead of Apple Event

Friday April 16, 2021 6:13 am PDT by
A video purporting to be of the third-generation Apple Pencil has today been shared online, showing a glossy finish that mirrors previous leaks. New ✏️ ready to 🚢 #AppleEvent @TommyBo50387266 pic.twitter.com/s4RCDwDi5M— 漢尼斯·拉斯納 🇨🇳 (@ileakeer) April 16, 2021 The brief video from Twitter account @ileakeer, spotted by 9to5Mac, shows an Apple Pencil with a glossy finish much like the...
important battery message iphone 11

Some iPhone 11 Users Seeing Increased Battery Health Percentages After iOS 14.5 Recalibration Process

Friday April 16, 2021 6:32 am PDT by
In the sixth beta of iOS 14.5, Apple introduced a recalibration process for the battery health reporting system on the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max to address inaccurate battery health estimates for some users. Apple said this process might take a few weeks to be completed, and now that two weeks have passed since the sixth beta of iOS 14.5 was released, some users are...
apple event particularly innovative article

Gurman: Apple's 'Spring Loaded' Event Won't Feature Anything 'Particularly Innovative'

Thursday April 15, 2021 1:30 am PDT by
Bloomberg's highly-respected Mark Gurman says that he expects nothing "particularly innovative" or "extraordinary" to launch at Apple's "Spring Loaded" event next week, Tuesday, April 20. Gurman made the remarks during an interview for Bloomberg Technology, in which he reaffirmed that Apple will launch a new 11-inch and 12.9-inch iPad Pro, with the higher-end model featuring a brand new...
Top Stories 57 Feature

Top Stories: Apple Event Next Tuesday, Mini-LED iPad Pro, iPhone Rumors

Saturday April 17, 2021 6:00 am PDT by
It feels like we've been waiting forever for new Apple products, but the wait is almost over as Apple has announced a media event for next Tuesday, so make sure to tune into MacRumors for full coverage of everything Apple announces. While that was the big news this week, we also got some new details on Apple's iPhone plans for 2022 and 2023 courtesy of analyst Ming-Chi Kuo, and we also saw...
apple event spring loaded

Apple's 'Spring Loaded' Event Officially Announced for Tuesday, April 20

Tuesday April 13, 2021 9:04 am PDT by
Following an overnight leak by Siri, Apple today officially announced that it will be holding a special "Spring Loaded" event on Tuesday, April 20 at 10:00 a.m. Pacific Time at the Steve Jobs Theater on the Apple Park campus in Cupertino, California. As with all of Apple's 2020 events, the April 2021 event will be a digital-only gathering with no members of the media invited to attend in...
maxresdefault

Hands-On With Anker's MagSafe-Compatible Battery Pack

Thursday April 15, 2021 9:39 am PDT by
Anker, a company known for its range of accessories designed for Apple products, recently came out with one of the first MagSafe-compatible battery packs, so we thought we'd check it out to see how it compares to a standard battery pack. Subscribe to the MacRumors YouTube channel for more videos. Design wise, Anker's power bank looks like a typical battery pack, but it has magnets built in...
iphone 13 pro max cads eap

iPhone 13 Series CAD Leaks Reveal Larger Camera Dimensions

Friday April 16, 2021 1:53 am PDT by
Information and alleged CADs of the upcoming iPhone 13 series, shared in a video from EverythingApplePro, indicates that Apple plans to make this year's iPhone camera module significantly bigger, likely to make way for larger sensors and sensor-shift stabilization. According to the CADs shared in the video, the iPhone 13 mini, Pro, and Pro Max camera module will all be a "perfect square."...
jaguar car homekit

User Adds Car to HomeKit for In-App Controls and Automations, Showing Future Potential

Thursday April 15, 2021 6:17 am PDT by
Blogger Siobhán Ellis has successfully integrated their electric car into their Apple HomeKit setup, adding in-app toggles for door locking, climate control, and more. The setup, which is outlined in detail on the blog Practical HomeKit, allows multiple elements of a Jaguar I-Pace electric vehicle to be monitored, controlled, and automated using the Home app. Using a HomeBridge plugin for ...
siir apple event april 20

Siri Reveals Apple Event Planned for Tuesday, April 20

Tuesday April 13, 2021 12:04 am PDT by
Siri has apparently prematurely revealed that Apple plans to hold an event on Tuesday, April 20, where the company is expected to reveal brand new iPad Pro models and possibly its long-awaited AirTags trackers. Subscribe to the MacRumors YouTube channel for more videos. Upon being asked "When is the next Apple Event," Siri is currently responding with, "The special event is on Tuesday, April...