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Verizon iPhone Could Mean Smaller Subsidy

Brian Marshall of Broadpoint.AmTech says that the iPhone expanding to Verizon could mean losing the $450 subsidy that AT&T provides on the phone. Apple Insider is reporting that the the industry analyst predicts Verizon iPhones in the second half of 2010, but with a higher out-of-pocket cost for users. Marshall believes that a non-exclusive iPhone would only get a $300 subsidy from the provider, meaning an expected extra $150 above what you would pay via AT&T.

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AT&T has received a large amount of negative press over its handling of various iPhone features, and network woes, but will these issues be enough to convince people to pay an extra $150? Or maybe Verizon will attract more ex-AT&T customers whose contracts are finally expiring. Mid-way through 2010 is almost exactly two years after the iPhone 3G was released, which would be very good timing for Verizon.

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