iPhone Subsidies May Cost Verizon Wireless $5 Billion In The First Year

Posted Jan 10, 2011

Verizon Wireless may end up spending $3-$5 billion to subsidize purchases of the iPhone for customers. The iPhone will help Verizon get some new customers, but this will affect the company profits. Verizon may end up selling 13 million devices with about a $400 subsidy, which would add up to around $5.2 billion. [BusinessWeek]