It's always exciting when someone stands up to a bully—unless that results in jacking up of the price of the hottest phone even higher than it already is. That is very unexciting, actually. In fact, it sucks. And that is exactly what's happening in this subsidy war between Apple and its wireless carriers, as these companies stand up to Apple's subsidies, which it turns out, is good for them, but bad for you.
Using its ample leverage, Apple has forced Verizon, AT&T, and Sprint into subsidizing the iPhone at around $400 per phone. Apple sells its device to wireless carriers for $600, of which carriers subsidize $400 to bring the price tag of the phone to a more accessible, less-scary $200-$400 range, depending on the device. Sick of writing that $400 check for each phone, these companies have started standing up to Apple, according to The Wall Street Journal's Anton Troianovski. This has investors all excited: "The carriers' latest signs of resistance are drawing applause from investors and analysts. They say the carriers could benefit more from the smartphone boom if they succeed in raising prices for service plans and slowing the rate at which customers buy new phones," Troianovski writes. But all that excitement comes from the potential to make more money off of you.