Does it seem just a tad ridiculous that a company that regularly crows about its strong revenue and earnings growth is also complaining about the “unaffordable” burden of smartphone subsidies? Monday Note’s Jean-Louis Gassée certainly seems to think so, which is why he’s penned a long rant about ATT and other wireless carriers being “shameless” in their “whining” about the costs of subsidizing smartphones. Gassée’s argument is very simple: Smartphones are helping carriers post significantly higher average revenues per user (ARPU) than they’d be posting otherwise, which more than makes up for the burden of subsidizing the devices when selling them to their customers.
“Assuming [carriers] bleed an extra $200 when subsidizing an iPhone (or a top Samsung handset, now that the Korean giant followed suit), they only need $8/month in extra subscriber revenue from the ‘offending’ smartphone,” he says. “And yet here we are: Randall
... read more at: http://bgr.com/2013/12/16/att-smartphone-subsidies-criticism/