All eyes are now set on the Verizon media event that is scheduled for later today when the carrier is expected to make the highly anticipated announcement regarding the launch of a CDMA iPhone on their network. There are already speculations that Verizon could be announcing unlimited data plans for iPhone users in a bid to compete against AT&T.
However, according to JP Morgan analyst Mark Moskowitz, Verizon could also be facing some challenges. He says that the carrier could be pricing their iPhone at a price that is $20 to $30 higher than the price of an iPhone on AT&T. This, he says, is because the redesigned iPhone will require components like CDMA radio that are pricier than the UMTS components.
But considering the cut-throat competition in the segment, we do not expect Verizon to transfer the higher costs to consumers. Instead, Verizon is likely to reduce their own margins in the short term to consolidate their iPhone subscriber base.