subsidy

AT&T reportedly discontinues sales of subsidized tablets

It appears the days of subsidized pricing for tablets are over at AT&T.

The carrier will no longer offer discounted, on-contract sales of tablets, according to a document published by Engadget. The document, which appears to be a briefing on new in-house sales policies, seems to indicate that today is the last day it will offer subsidized pricing of slates when purchased with a two-year data contract:

Customers purchasing a tablet after August 19, 2012, no longer have a two-year pricing option. The only option available will be the no commitment pricing.

The document also details changes to … Read more

Why AT&T actually doesn't mind when smartphone sales drop

You'd think AT&T would be more upset that the number of smartphones it sold in the second quarter fell nearly 8 percent. You'd be wrong.

The Dallas telecommunications giant is probably thrilled that smartphone sales fell, resulting in better wireless margins and driving better-than-expected second-quarter results.

It's the contradictory dynamic that all carriers find themselves in: smartphone sales are vital to keeping a healthy flow of revenue and profit growth but come at a more immediate cost in the form of subsidies that are paid to the handset manufacturers. The subsidy issue is most dramatically … Read more

Self-publishing a book: 25 things you need to know

Note to readers: I originally published the article back in 2008 and have updated it a few times, most recently on June 13, 2012. This article primarily addresses self-publishing a print book, though many of the tips apply to e-books as well. For specific information about publishing an e-book, see my companion article, " How to self-publish an ebook."

I know, I know. This is a column about cutting-edge electronics. So, apologies to gadget-heads as I take a brief sojourn into the land of self-publishing, which has become a lot more high-tech than a lot of people realize.

A few years ago I wrote a book. A novel. "Knife Music." Contrary to what you might think based on my day job, it's not a cyber-thriller, though it is a mystery/thriller with a medical/legal slant.

Its short history is this: I worked on it for several years, acquired a high-powered agent, had some brushes with major publishers, then, crickets.

I could have tried to go for a small publisher, but I was told mine was "a bigger book" with more commercial aspirations and prestigious small publishers were interested in more literary tomes. I also learned that many small publishers were being wiped out by the "self-publishing revolution," a movement that's not so unlike the "citizen journalism" or bloggers' revolt of recent years that's had a major impact on mainstream media, including this publication. The basic premise is anyone can become a small publisher. You call the shots. You retain the rights to your book. And you take home a bigger royalty than you'd normally get from a traditional publisher--if you sell any books. … Read more

iPhone buyers, fear not over carrier subsidies, says analyst

iPhone buyers have nothing to worry about, at least when it comes to carrier subsidies.

Recent moves by two Spanish carriers to eliminate subsidies for new iPhone users triggered fears that other carriers could do the same. Removing the subsidy paid by carriers to Apple means buyers would have to shell out the full retail price for the phone.

But Morgan Stanley analyst Katy Huberty sees little or no chance of that trend spreading any further.

In a research note published today, Huberty said that all three U.S. iPhone carriers are required by contract to provide certain subsidies. The … Read more

Analyst: Carriers are locked into those steep iPhone subsidies

Apple is making bank on wireless carriers' high iPhone subsidies. And although carriers aren't too pleased with the amount they have to pay per subsidized unit sold, there is little chance that they'll abandon their partnerships with Apple anytime soon, according to an analyst.

According to All Things Digital, which obtained the letter to investors, analyst Avi Silver of research firm CLSA believes that Apple has inked multiyear agreements with carriers that prevent companies such as AT&T or Verizon from changing iPhone subsidy pricing anytime soon. More importantly, the analyst believes that Apple has locked the … Read more

It's hard out there for a wireless carrier

Facing greater expenses, the wireless industry is trying to drum up profits by relying more on such services as prepaid and mobile broadband, says a report out today from PwC.

Surveying wireless carriers in the U.S. and Canada last year, PwC found a variety of challenges to their profitability.

Rising smartphone subsidies have forced providers to pay more up front for the privilege of carrying certain smartphones. Though obviously popular, the iPhone requires carriers to pay a huge subsidy, crimping per user profit.

And though providers have been pushing smartphones to their customers, the resulting rise in data usage … Read more

T-Mobile exec: Subsidies are hurting wireless industry

Subsidies, which allow the iPhone 4S or Galaxy S II to sell for $200, are actually hurting the industry and artificially devaluing the sophisticated hardware that's out in the market.

That's the read from T-Mobile USA Chief Marketing Officer Cole Brodman, who spoke yesterday at an event hosted by Geekwire. It's a surprising statement because T-Mobile--along with rivals such as AT&T and Verizon Wireless--still relies heavily on subsidies to drive customer growth.

But T-Mobile, more than its rivals, has experimented with no-contract, no-subsidy options, including a monthly payment plan for phones. Currently, the company's … Read more

For carriers, the iPhone is a bittersweet drug

Could the wireless carriers actually be addicted to the iPhone?

By now, it's well understood that the iPhone is a double-edged sword for the wireless carriers. On one side, Apple's smartphone is a pricey device to carry, requiring an unusually high subsidy that carriers must pay to keep it affordable enough for the masses. On the other, it leads to more loyal customers who pay more each month.

Furthermore, the telecom companies get to wrap themselves in the hip vibe that Apple brings to its products and partners, and can you put a price on being cool?

Apparently, … Read more

Intel denies $100 subsidy on ultrabooks

Intel is not providing a $100 subsidy on ultrabooks, the company said today, contradicting an Asia-based report.

In that report, Taipei-based Digitimes asserted that Intel is offering a $100 subsidy for ultrabooks, which, in turn, will allow manufacturers to drop prices aggressively on the ultraslim laptops.

"There is no $100 subsidy for ultrabooks," Bill Calder, an Intel spokesman, told CNET. "The report from Digitimes was false," he said.

Intel does offer various marketing incentives as a normal course of business. An example of an Intel co-marketing campaign includes Intel Inside, where Intel provides some advertising dollars … Read more