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    US Cellular: We turned down iPhone

    NEW YORK (AP) — U.S. Cellular Corp., the country's sixth-largest cellphone company, on Friday said it had the opportunity to carry the iPhone but turned it down because the phone is too expensive.

    It's the first U.S. carrier to acknowledge turning down the phone.

    Consumers pay $200 for the base model of the iPhone 4S, but Apple charges carriers about $600 for it. Carriers count on making their money back in service fees over the life of the contract.

    U.S. Cellular CEO Mary Dillon told analysts on an earnings conference call Friday that "the terms were unacceptable from a risk and profitability standpoint." She didn't provide any details, but said the added load the iPhone could have placed on its data network was not a big consideration.

    Chicago-based U.S. Cellular has 5.9 million subscribers, a number that has been shrinking slowly over the past two and a half years. Only a quarter of its subscribers on contract-based plans have smartphones, compared with half at AT&T Inc.

    Carriers see the ability to sell the iPhone as a crucial competitive advantage, though its high price means it's not an easy path to profits. Sprint started selling the phone last month and has said it will take two years for it to pay off.

    AT&T was the exclusive U.S. carrier for Apple Inc.'s phone for three and a half years, until Verizon Wireless got it in February. Now, tiny Mississippi-based carrier C Spire Wireless is set to add it too.

    T-Mobile USA, the fourth-largest carrier, has a data network that isn't compatible with the iPhone.

     
    • Square303  •  6 mths ago
      Repeat after me: We live in a free society, where companies charge what they want, people have free will to make decisions on what they want to buy.

      For all of you trying to argue someone is dumb for buying an iPhone, or Apple is greedy for selling it for what people are willing to pay, I ask: Do you want to live in a society where you have no choices? Do you think other people shouldn't be allowed to make choices you might disagree with? Wake up and live your own life, stop worrying about what other people do, if it isn't harming you.
      • andrew 6 mths ago
        Beautiful post. Couldn't agree more.
      • A Yahoo! User 6 mths ago
        TomS: A great post! Unfortunately from the tone of some of the prior comments on this thread, the only choices they believe in are the ones that they approve of. Everyone marches to their tune or not at all. I'm glad to hear from someone that marches to their own tune. :-)
      • Bruce 6 mths ago
        TomS: Thanks for pointing out the single best advantage we have over other countries. Exercising our own free will is what makes us great. Great post Tom.
    • electronic tech.  •  6 mths ago
      apple charges $600 for the iphone, LoL...the truth comes out, that's why the cell companies kicked the one year contracts and make you sign for a 2 year contract, then change the data plan to 2GB a month ...
      • ansonh 6 mths ago
        cell phones are always sold less than they are actually worth. the processor inside is probable the cost of the phone. what makes money is always the contracts.
      • A Yahoo! User 6 mths ago
        that was not news anyone with a brain knew that and yes they are worth the money
    • Terry  •  Seattle, United States  •  6 mths ago
      To PETER SVENSSON - AP Technology Writer: it is an inaccurate statement that "T-Mobile data network that isn't compatible with the iPhone", because T-Mobile is using the same GSM/EDGE (850, 900, 1800, 1900 MHz) network supported by Apple iPhone.
      • william h 6 mths ago
        but iphones that are jail broken and unlocked, only run at edge speed on their netwok not 3g
      • calvin 6 mths ago
        agreed with William H t-mobile uses the 2100 mhz AWS for 3g and 4g data, a frequency not supported by the iphone.
      • Josh 6 mths ago
        It's a shame that journalists these days aren't journalists at all--just bloggers in their parents' basement writing articles on the cheap for whomever will give them a small portion of the ad revenue their terrible content generates.
    • A Yahoo! User  •  6 mths ago
      Sounds OK. There are a lot of other smartphones available.
    • tto  •  Chicago, United States  •  6 mths ago
      "T-Mobile USA, the fourth-largest carrier, has a data network that isn't compatible with the iPhone."

      For fucts sake, is it too much to ask that reporters get something right? This bozo should lose his job. Technology writer....Pffffffft.
      • calvin 6 mths ago
        it's 3G and 4G networks are not compatible, such GSM and EDGE are but from a competiitive standpoint, why would t-mobile launch the iphone if it will only be capable of 2g data transit? t-mos High-speed data is broadcast in the 2100 mhz AWS spectrum which not other US carrier uses, and the iphone does not support.
    • Johnny Blaze  •  San Mateo, United States  •  6 mths ago
      I'm just curious. Why does Apple charge carriers $600 for such a little computer (iPhone), yet powerful laptops sell retail for $400. There is much more technology in a laptop right? How can production cost be so high for the iPhone, yet production cost for an iPhone or other smartphone be so much more expensive. Is it possible there could be major gouging going on?
      • brokendog 6 mths ago
        TO MAKE STOCK HOLDERS big $$$$ duh
      • Clever 6 mths ago
        Because they know the masses will pay for them just as they have done.
      • william h 6 mths ago
        yet powerful laptops sell retail for $400. theirs start at a grand, but your right you can buy a laptop that will do more work per $$$
    • G  •  6 mths ago
      Ask Sprint how good the iPhone has been for them (it's been a disaster if you need to know).

      Apple's greed and comically one-sided contracts are killing the iPhone.
    • Travis  •  6 mths ago
      Shows why US phone/data plans are $80+ every month...
    • Beep  •  Salt Lake City, United States  •  6 mths ago
      Wow, apple charges $600 for something that costs about $50 to make.
    • tenpiece  •  6 mths ago
      Two years to make a profit off the i-phone? Seems like a gamble either way. Not a bad move by US Cellular
    • James  •  6 mths ago
      Phones are becoming smarter as consumers are becoming more dumb
    • TD  •  Conroe, United States  •  6 mths ago
      I had an iphone for several years. I now have a Samsung Android and I like it way better. Apple has suckered a lot of sheeple.
    • nick m  •  6 mths ago
      Its probably smart not to bring the iPhone with any new company now, every MAJOR company has them so its not very exclusive, and smaller companies have to lay out quite a bit to jump in a watered down market with a phone that isn't as "exclusive" as it was just a year ago...
    • A Yahoo! User  •  Grand Rapids, United States  •  6 mths ago
      I asked at my store yesterday, he said they are putting their money into their 4G network. I'm extremely happy with my service from US Cellular. Never a dropped call unless I'm in a hugely concrete building. I love my windows 7 phone.

      People: Choices are good. I think that everybody will find the phone and service based on there needs including price, service and features. to each their own.
    • na69  •  Chicago, United States  •  6 mths ago
      Not to say the I4S is not the way to go. But way to stand up to the "wal-Mart" effect.
    • Jaws  •  6 mths ago
      The headline should read:

      US Cellular: We're too small of a company to afford to sell the iPhone
    • A Yahoo! User  •  Milwaukee, United States  •  6 mths ago
      Who cares.
    • Larry  •  6 mths ago
      Many phones out there as good or better. For me a phone is a basic instrument and all the frills are of little interest, just complicates want is basically a straight forward device. Dial a number, talk with someone, end of story.
    • Coastie90  •  Tampa, United States  •  6 mths ago
      I know people with open I phones purchased overseas and they use them on T-Mobile. That last statement is incorrect.
    • Robert  •  Madison, United States  •  6 mths ago
      US Cellular rocks!
      I have gotten outstanding customer service, and new phones on a regular basis.
      HTC and Samsung both have fabulous phones.
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