How Apple Will Benefit From the End of Smartphone Subsidies

By Doug Ehrman and Alison Southwick – Jul 27, 2013 at 10:00PM

NASDAQ: AAPL

Apple

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Most of the focus on phone subsidies has been directed at the carriers, but hardware manufacturers will probably feel an impact as well.

Much of the attention surrounding the end of smartphone subsidies has been focused on the impact on wireless carriers. T-Mobile (TMUS 0.57%) is in the process of rolling out new plans, and there are rumors that Verizon (VZ -0.53%) will probably end subsidies soon as well; if so, AT&T (T 1.88%) will certainly be close behind. But how will smartphone makers such as Apple (AAPL 1.27%) be affected?

In the following interview with the Fool's Alison Southwick, Fool.com contributor Doug Ehrman discusses some of the potential impacts on Apple of the end of smartphone subsidies and why this might actually be good news for the iPhone maker.

Alison Southwick owns shares of Apple and AT&T. Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.