iPhone users the biggest cash cows for carriers

iPhone users pay more in carrier fees on average than the users of other smartphones. New data indicates that 60% of iPhone users spend at least $100 per month on their cellular plan, with 10% spending $200 or more. Conversely, only 53% of Android users pay over $100 per month, with 7% paying $200 or more. Consumer Intelligence Research Partners (CIRP), the company that provided the data, says that this spending has little to do with usage habits, according to the Wall Street Journal:

“We think it has to do with their data plans and carriers, rather than their usage habits,” CIRP co-founder Michael Levin explained. “They are all on expensive data plans, unlike Android users, some of which are on prepaid or unsubsidized plans with regional carriers.”

This is not really surprising. Verizon and AT&T, the two largest wireless providers in the United States, also charge their customers the most. Plans on Verizon start at $100 per month, with $40 for line access, and $60 for 2 GB of data. By comparison, they charge $10 per month for tablet access. AT&T starts individual customers at $60 per month, with $40 for 450 minutes, $20 for 300 MB of data, and no included text messaging.

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But just because the carriers are charging more for these smartphones doesn’t necessarily mean that they are making more money, as the iPhone has higher subsidies than other phones in its class. Carriers use the more expensive plans to make back more of their money faster than they used to.

What is your wireless plan like? Have you found ways of saving money on these plans? Let us know below in the comments.

Source: Wall Street Journal