U.S. Cellular to sell the Apple iPhone
Apple requires carriers to purchase a minimum amount of units. In this case, U.S. Cellular is promising to pay Apple $1.2 billion over three years. That works out to roughly 2 million phones. But just because a carrier starts selling the Apple iPhone doesn't mean that the merchandise will move. Last June, pre-paid operator Leap Wireless signed a three year $900 million deal with Apple. Despite a recent bump-up in iPhone sales, Leap says it will not buy any more handsets from Apple.
There is a big difference, however, in selling unsubsidized iPhones like Leap is doing, and charging less than half that amount in return for a two-year lock-up like U.S. Cellular does. Another reason for U.S. Cellular's reversal on the iPhone is that 18 months ago, the carrier did not have 4G LTE service like it has now. Dillon did not give a launch date for the Apple iPhone nor did she specify which iPhone models will be available to U.S. Cellular customers.
1. Mxyzptlk (Posts: 5365; Member since: 21 Apr 2012)
The benefits of selling a phone that just works outweigh the costs.
2. dorianb (Posts: 471; Member since: 24 Oct 2012)
I sorry, but who actually gives ranks past 5th place?
3. TNesmith (Posts: 13; Member since: 05 May 2013)
This happened to Sprint and we all know what happened to them...
But really though; $1.2 Billion!!!!!! Billion... that's $400 Million a year for a phone that is launching on a network that is losing customers. This is a gamble for this company. If you ask me there were smart to reject it the first time. They realized that T-Mobile gave in and decided to do the same...
4. Jodabro (Posts: 35; Member since: 01 Dec 2011)
Mary Dillion was the worst decision they made. Company is doomed.