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
111 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
111 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
111 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
111 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
111 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
111 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)

Related Stories

studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
YouTube Picture in Picture Feature

YouTube Premium Subscribers Can Now Use iOS Picture-in-Picture: Here's How

Wednesday August 25, 2021 3:55 am PDT by
Google has rolled out picture-in-picture support as an "experimental" feature for YouTube premium subscribers, allowing them to watch video in a small window when the app is closed. If you're a premium YouTube subscriber looking to try out picture-in-picture, follow these steps: Launch a web browser and sign into your YouTube account at YouTube.com. Navigate to www.youtube.com/new. Scroll...
os x mountain lion macs 16x9 2

Apple Makes OS X Lion and Mountain Lion Free to Download

Wednesday June 30, 2021 12:19 pm PDT by
Apple recently dropped the $19.99 fee for OS X Lion and Mountain Lion, making the older Mac updates free to download, reports Macworld. Apple has kept OS X 10.7 Lion and OS X 10.8 Mountain Lion available for customers who have machines limited to the older software, but until recently, Apple was charging $19.99 to get download codes for the updates. As of last week, these updates no...
tim cook spring loaded event

Gurman: Apple Planning Multiple Events for the Fall, M1X MacBook Pros to be Available by November

Sunday August 15, 2021 12:07 pm PDT by
Apple is planning to hold multiple events this fall, which will collectively include the launch of new iPhones, Apple Watches, updated AirPods, revamped iPad mini, and the redesigned MacBook Pros, according to respected Bloomberg journalist Mark Gurman. In his latest weekly Power On newsletter, Gurman says that much like last year, Apple will hold multiple events this coming fall, with the...
apple screen time screen icons

Persistent Kids Finding Loopholes in Apple's Screen Time Limits

Tuesday October 15, 2019 9:44 am PDT by
Apple is currently engaged in a cat-and-mouse game with persistent kids looking to circumvent Screen Time restrictions, but the company has been receiving some criticism for not moving quickly enough to lock down some of the loopholes, reports The Washington Post. A few of the loopholes and ways for parents to shut them down are documented on the site Protect Young Eyes, while these and...
anker lightning cable mfi

Unwrap a New Apple Device? Stock Up on Extra Certified Lightning Cables for as Little as $6

Monday December 25, 2017 5:45 am PST by
If you unwrapped an Apple product today it likely came with one of the company's first-party Lightning cables, but having an extra on hand is always a good idea, so you can place it in other rooms in your house, in your car, or in a bag when you travel. For that reason, now's a good time to shop for third-party Lightning cables that are cheaper than Apple's own accessory, but still Made For...
personal hotspot 1

Apple Acknowledges Personal Hotspot Issues Affecting Some iOS 13 and iPadOS 13 Users

Saturday March 21, 2020 10:04 am PDT by
In an internal document distributed to Apple Authorized Service Providers this week, obtained by MacRumors, Apple has acknowledged that some iOS 13 or iPadOS 13 users may experience issues with Personal Hotspot. Apple has told Authorized Service Providers to expect customers who are unable to connect to a Personal Hotspot or experience frequent disconnection from one. Customers may also...
macos monterey safari beta 3

macOS Monterey Beta 3: Apple Redesigns Safari Tab Interface Following Complaints

Wednesday July 14, 2021 11:39 am PDT by
In the third developer beta of macOS Monterey, which came out this morning, Apple has overhauled the design of Safari, making the tab bar more similar to the current tab bar in macOS Big Sur. The prior Safari design did away with the dedicated URL and search interface, instead allowing any individual tab to be used for navigation input. Tabs were also all arranged at the top of the display...