AT&T Subsidizes iPhone Expenses Amounting to $1.2 Billion, Claims Profitability in 2 Years

AT&T said on Monday that its profits over the next two years would be affected because it would offer subsidies for the low price of the latest iPhone. AT&T is the exclusive distributor of the iPhone in the US. AT&T will spend 10 to 12 cents per share over the next two years as a subsidy for the iPhone, which is roughly equivalent to an annual expenditure of $600 million.