American iPhone may bust free in May

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Out here in the States one of the biggest gripes about the iPhone has nothing to do with the phone itself, but rather with its exclusive carrier, AT&T. Complaints ranging from sluggish and spotty 3G speeds and dropped connections are common with any carrier, and in different parts of a state or even a city, reception can vary greatly from one network to another.

If a recent analyst report is anything to go on, however, we could see that issue resolved for a great many people. Apple's biggest and oldest carrier deal may be set to expire and the company could be preparing to expand to other networks.

Oppenheimer analyst Tim Horan recently suggested that the deal with AT&T will expire in May, and that Apple may spend the following months rolling out deals with T-Mobile, Verizon and Sprint.

Should those carriers agree to Apple's current subsidisation rates, such a move could send iPhone sales and Apple's profits through the roof. That doesn't seem as likely with multiple deals, however, as the companies would not want to pay those sorts of costs without getting an exclusive contract.

Instead, if true, the news could mean that Apple is willing to take a cut in profit margins and make up for it by selling more iPhones. Given the popularity that the iPhone has had with even one carrier, that may not be such a far-fetched idea.

26 Jan 2010

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