The Apple iPhone is not just one of the most expensive smartphones on the market, but owning it results in paying the highest carrier bills, according to data from Consumer Intelligence Research Partners (CIRP).
However this might be due more to the fact that iPhones are usually tied to the most expensive data plans rather than because of users consuming the most data on Apple’s devices.
“We think it has to do with their data plans and carriers, rather than their usage habits,” CIRP’s Michael Levin said. “They are all on expensive data plans, unlike Android users, some of which are on prepaid or unsubsidized plans with regional carriers.”
At the same time, more money paid by the users does not necessarily translate into more profits for carriers. The problem seems to be that the iPhone subsidy is much higher than the subsidy for Android devices, and carriers are still more likely to get higher margins out of Android phones rather than the iPhone.
“Given the subsidies on iPhones, the carriers are working hard to make their money back during the course of the contract,” CIRP’s Josh Levitz explained. “With the exception of perhaps the hottest Android phones, we think the subsidies on Android phones are lower, so the carriers make more money even with slightly lower per subscriber revenue.”
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