iPhone Carrier Comparison: Do you find it hard to believe that Apple Inc. (NASDAQ:AAPL) users spend more on their carrier bill every month than users of other smartphones? Would you be surprised to learn that roughly 10 percent of users spend more than $200 per month with their selected carrier?
AllThingsD was recently provided new data by Consumer Intelligence Research Partners (CIRP) showing that “the average monthly carrier bill of the typical iPhone user is the highest in the smartphone market. iPhone owners spend more on wireless fees than owners of any other handset, be they Android, BlackBerry or Windows Phone.”
According to the information, nearly 60 percent of those polled during October to December 2012 spent in excess of $100 per month with their carrier. As noted above, 10 percent spent more than $200.
On the low side of things, only six percent were spending less than $50.
As you can see, Apple Inc. (NASDAQ:AAPL) users are more than willing to spend money on this monthly expense.
Although it is easy to see that iPhone users spend more, this does not answer a very important question: why is this the case?
To shed some light on a potential answer, CIRP co-founder Michael Levin added the following to the article:
“We think it has to do with their data plans and carriers, rather than their usage habits. They are all on expensive data plans, unlike Android users, some of which are on prepaid or unsubsidized plans with regional carriers.”
This may appear to be a good thing for wireless carriers. It is easy to think that the more money an iPhone user spends the more money the carrier is going to make. However, this is not always the case as explained by Josh Levitz of CIRP.
“Given the subsidies on iPhones, the carriers are working hard to make their money back during the course of the contract. 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.”
If you remember correctly, carrier subsidy costs became a sticking point for Apple Inc. (NASDAQ:AAPL) in 2012.
Here is what AppleInsider added:
“Carrier subsidy costs for the iPhone became a focal point for Apple last year, when some market watchers expressed concern that carriers could balk at Apple’s higher subsidies. Apple Chief Executive Tim Cook downplayed those concerns last July, noting that the total subsidy that carriers pay is “fairly small” when compared with the monthly payments that carriers collect from their subscribers.”
What are your thoughts on Apple Inc. (NASDAQ:AAPL) iPhone users spending more than other smartphone users?
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DISCLOSURE: I have no positions in any stock mentioned.
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