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Journal Explores 'iPhone's Subsidy Crutch'
Android Winning in No Subsidy Markets...

The Wall Street Journal notes that the iPhone is significantly less successful in markets where carriers aren't willing to subsidize the device and where users traditionally don't sign contracts. In the U.S., where carriers pay $400 to subsidize each device and users sign long-term contracts, Apple reigns supreme.

In markets like Denmark and Spain, where carriers are tired of underwriting the devices, less expensive Android devices tend to take the lead because of the extreme Apple price tag. While there have been attempts to change the U.S. market to rely less on subsidies, it hasn't gone well -- given the two-year contract and pricey ETFs are the playthings of a largely duopoly-dominated market intent on keeping competition to a bare minimum. More competition? More unsubsidized phones.

"Our competitors are much more dependent on such subsidies," John Lagerling, Google's director of Android partnerships tells the Journal. "From a sustainability standpoint, if you have very expensive devices as the only ones available to access your ecosystem, then that can come with a pretty severe hangover in the long run."

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JohnInSJ
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join:2003-09-22
Aptos, CA

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JohnInSJ

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Breaking news!

Cheaper phones sell better than expensive phones, when people have to actually pay full retail!

Extra! Extra! Read all about it!