China Carrier Said to Cut Subsidy on Apple (AAPL) iPhone 5C, 5S
China Telecom (NYSE: CHA) cut its subsidy on the iPhones, now requiring a 4,488 yuan (about $734) deposit on the iPhone 5C and 5,288 yuan for the iPhone 5S, according to one analyst from Sun Hung Kai Financial. Both devices require two-year contracts, with payments of 329 yuan on the 5C and 389 yuan for the 5S.
Bloomberg notes today that a spokesperson with China Telecom said that the upfront costs for the device would be 2,398 yuan with monthly payments of 289 yuan. Numbers compare with a down payment of 3,400 yuan for the iPhone 5. He didn't comment on analyst comments.
For the iPhone 5 last year, customers had to pay 1,888 yuan with a similar 289 yuan per month plan.
Shares of Apple are indicated higher Monday after closing down 1.7 percent last Friday. China Telecom is flat.