New Verizon iPhone: Price Hike Over CDMA Parts

As many people are expecting the Verizon iPhone to be announced at the Verizon event today, we thought a report on the price hike on CDMA parts was in order to give you a bit of a bigger picture, especially as we have already asked you what’s on your last minute wish list.

According to thestreet.com’s Scott Moritz, Verizon may face similar issues with the profit margin that AT&T did back in 2009. Moritz says that the $900 million worth of iPhone subsides took 11 cents a share off its earnings, he predicts that Verizon will face similar if not larger damage. Head over to his full article and see what you think.

A few different sources including AppleInsider’s Neil Hughes, are predicting that the Verizon iPhone could carry a higher cost due to the cost of CDMA wireless components recent rise in price. This might be a slight downfall for Verizon as they will need to justify the price of the device to avoid outrage of the consumers. Some customers may feel that the price has gone up purely because it’s the best smartphone coupling with the best network when that’s not the case. The actual price difference is said to be around $20-$30 of an increase, purely for the price of the components.

Another contributing factor may be the new unlimited data plan that was recently announced by Verizon. Many sources are speculating that Steve Jobs may appear at the Verizon hosted event but we are skeptical. Nobody really knows what is going to happen, we will just have to wait and see.

What do you think of an increase in the price of an iPhone on the Verizon network? Will you still make the switch? Let us know your feelings in the comments box beneath.