IPhone May Cost Verizon $5 Billion in First Year
This article is for subscribers only.
Verizon Wireless, set to get Apple Inc.’s iPhone this month after four years of waiting, may spend $3 billion to $5 billion to subsidize customer purchases of the device this year, cutting into profits, analysts say.
Verizon, the largest U.S. wireless carrier, will announce that it’s getting the device at an event in New York today and plans to put it on sale later in the month, a person familiar with the company’s plans said this week. The person could not be identified because the plans aren’t yet public.