If you’re thinking about getting that new 3G iPhone, you might want to hold off a few more months and see what happens with the other carriers. BusinessWeek has an article about how AT&T’s aggressive subsidizing of the iPhone will have a negative impact on handset makers and carriers, because it’s going to force them to increase subsidies and reduce service fees. Translation: good times for the consumer bold enough to stay off the iPhone train.
Another way to retain users is to offer lower service prices. In fact, here’s one way competitors may have a leg up on AT&T, which has raised service prices for iPhone buyers as it tries to recoup the higher subsidy cost. “The operators are going to get very aggressive with pricing in the second half of the year,” says Walter Piecyk, an analyst with Pali Research. “We could see 30% to 40% price cuts in the industry, [possibly led by Sprint]. If people are paying more for gas, saving $50 a month for wireless will be compelling.”