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Don't Plan on Upgrading Your New Verizon iPhone Anytime Soon

By Evan Niu, CFA - Apr 17, 2013 at 1:30AM

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Verizon Wireless recently announced changes to its upgrade policy, which could put a dent in iPhone sales since most consumers aren't willing to pay full price. Should Apple be worried?

No. 1 domestic wireless carrier Verizon (VZ 0.28%) Wireless recently announced it was tightening upgrade policies, extending the time frame that consumers have to wait to a full 24 months. Carriers have also been trying to reduce subsidies via platform competition. That's an incremental negative for Apple (AAPL 4.01%), since the company still relies heavily on subsidies to boost iPhone prices, but not as bad as if AT&T (T 1.67%) had made the move (it sells more iPhones).

In the video below, Fool contributor Evan Niu, CFA, explains how this might affect Apple investors.


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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$143.11 (4.01%) $5.52
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
$49.67 (0.28%) $0.14
AT&T Inc. Stock Quote
AT&T Inc.
$20.74 (1.67%) $0.34

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