US Cellular Corp, the sixth largest carrier in the country, revealed recently that Apple's terms for having the iPhone 4S were unacceptable and the price was too high, although they would have liked to include Apple's newest handset in its offering to subscribers, The Washington Post (opens in new tab) reports.
While subscribers pay $200 for the iPhone 4S, Apple charges the carrier $600 for the privilege. Supposedly, carriers make their revenue from service fees but US Cellular's officials didn't appreciate the financial pressure iPhone 4S would have brought.
Mary Dillon, US Cellular CEO, explained why the company had refused the opportunity to offer Apple's smartphone, "the terms were unacceptable from a risk and profitability standpoint." US Cellular Corp has about 6 million subscribers and figures show that this number is decreasing. From these, only 25% of the customers are smartphone owners, compared to the 50% smartphone owners at AT&T.
Sprint, the carrier that brought an iPhone onto its network for the first time, reported that it will take the company two years to make a profit from the partnership with Apple. In addition, apart from the two giant carriers Verizon and AT&T, a small carrier C Spire Wireless will probably include iPhone 4S in its offer to subscribers. As analysts had suggested a while ago, Apple has adopted the most aggressive strategy with the iPhone 4S.