iPhone Could Cost Verizon $5 Billion In Subsidies In The First Year

Verizon VZ is expected to announce today it will begin selling Apple's AAPL iPhone. The news comes after years of anticipation. Verizon could spens between $3 and $5 billion this year on subsidies for the phone, which could cut directly into its profits. Verizon is expected to make the announcement today in Lincoln Center in New York and plans to begin selling it later this month, according to a recent Bloomberg report. While the partnership is expected to add subscribers, it could initially crimp profits due to the potential $400 subsidy, which could cost $5.2 billion if the expected 13 billions units are sold, according to John Hodulik, an analyst at UBS AG. VZ closed Monday at $35.92 AAPL closed Monday at $342.45