>Not sure why that would be, surely while Apple dictates their asking price they don't dictate financed price do they? So that's a self-inflicted wound, and one which carriers could fix by financing the phone less.

The fact is that margins are down at Sprint, Verizon and AT&T because of the iPhone.

Last quarter:

http://business.time.com/2012/02/08/how-apples-iphone-actual...

This quarter, AT&T's and Verizon's profits are up because of lower iPhone sales:

http://www.reuters.com/article/2012/04/24/us-att-idUSBRE83N0...

I think Apple won't be too happy with it's primary device more expensive than $199 on contract as that's the sweet spot and any increase will cut into sales.

Apple's stock is down about 13% in two weeks because the carriers are getting tired of razor thin margins on iPhones while Apple laughs all the way to the bank and are pushing back. Not to mention the lower sales of iPhones this quarter.

http://blogs.marketwatch.com/thetell/2012/04/23/apple-slips-...

http://money.cnn.com/2012/04/24/technology/att-verizon-iphon...