Verizon (NYSE: VZ) could subsidize the new iPhones by up to $5 billion, some sources estimate, when the communications giant receives Apple's product. This would quickly increase their subscriber growth in the short run. While the subsidies may eat into profits, the long term prospects for the company are extremely healthy, and Verizon may steal customers from rival AT&T (NYSE: T)
The company that really benefits the most is Apple (NASDAQ: AAPL). Verizon will take the short term loss in order to boost the selling if Apple's iPhone on it's network. Analysts believe that Verizon could add 13 million subscribers this year. Verizon does have an extremely powerful network capable of supporting the increased bandwidth from these phones. Conversely, rival AT&T has had trouble keeping up, which led to dropped calls and unhappy customers.
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