Could carriers rebel against the high costs of Apple?s iPhone?

If a carrier, like AT&T, wants to improve profitability on iPhone sales, it has to do so by reducing the subsidy. The only way to reduce the subsidy is to get Apple to drop its pricing, or to sell at a higher contract price

Yesterday, on Wall Street, we saw something rare. An Apple analyst downgraded the stock from a ?buy? to ?neutral? rating. Most analysts who cover Apple are incredibly bullish. So it?s interesting to think about why this analyst, Walter Piecyk from BTIG Research, disagrees. I haven?t seen his research report with my own eyes, so I?m relying on the good reporting done by AllThingsD here. The crux of the downgrade reasoning seems to come down to subsidies.

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