I don't see how they could possibly justify their iPhone prices Two totally different markets. Carrier subsidies inflate the price of SmartPhones because the c

I don't see how they could possibly justify their iPhone prices Two totally different markets. Carrier subsidies inflate the price of SmartPhones because the consumer is not paying the full price up front. They don't even know what the real price is. The carriers would certainly like to negotiate prices lower however the iPhone owns enough of the market, by itself, that Apple has the upper hand. A carrier who doesn't offer the iPhone these days is in trouble. This is true of other types of SmartPhones too. Having the latest and greatest Samsung phone is valuable to the carrier as well. So they pay a bit more to lure in customers with nicer phones. Don't feel too bad for the carrier's though because they still make quite a lot of money in this arrangement too.