Couriers will lead iPhone 13 sales, but the deals won’t last forever

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Competition between managers will drive iPhone 13 sales with aggressive deals, industry commentators say, but iPhone subsidies will end at some point.

Carriers have played a significant role in driving demand for iPhones, thanks to their fight for market share …

The WSJ reports.

IPhone sales have been booming since it launched models last year with ultra-fast 5G cellular capabilities, largely boosted by compelling offerings from wireless companies to persuade customers to use the new technology.

Verizon, AT&T, and T-Mobile have launched huge subsidies in the past year to build customer loyalty and reduce the cost of buying new iPhones so users upgrade their 5G services […]

Carriers have more than doubled their incentive spending in the past three quarters from a year earlier, according to estimates by BayStreet Research, which tracks device sales. The average client benefited about $ 200 compared to about $ 100 the previous year, according to data estimates from consulting firms.

The advertised offers have had some mind blowing numbers, including offering some customers brand new devices with no money or small monthly payments stretched over many months. AT&T recently offered up to $ 700 in trading credits for a new iPhone Pro that would cost $ 8.31 a month for three years. […]

As Apple prepares to show a new crop of 5G-enabled iPhones on Tuesday, a big question is how long that costly courier fight for customers will continue to drive iPhone sales.

Many believe the cost of these incentives is too high to be sustainable and that there will come a time when carriers will cut. This is likely to reduce demand for the iPhone.

But the iPhone 13 loop looks safe.

Asked by an analyst in August whether AT&T could curb subsidy spending, CFO Pascal Desroches said the company was pleased with the results. The deals we have out there are competitive and are very profitable for us, he said. So for the foreseeable future, I don’t see any change in that.

This year’s iPhone range will be announced at Apple’s event tomorrow and of course we’ll give you all the details.

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