FREEDOMPOP SHOWS HOW APPLE AS WE KNOW IT MAY DIE SOMEDAY $AAPL
FreedomPop is a new start-up that plans to challenge AT&T (T) and Verizon (VZ) by providing free mobile data–500 MB per month. Both AT&T and Verizon have huge margins on mobile data because of the lack of competition. AT&T and Verizon use these big margins to subsidize Apple‘s iPhone, Google‘s Android and other devices.
The big carriers provide a higher amount of subsidies on iPhones than on Android devices. An iPhone that costs the consumer $199 may cost a carrier $500 to $700 even though they may be buying millions of these devices. The carriers more than make up for the upfront subsidies over the life of the contract due to huge margins on data plans.… Please click here or the title below to read more.