Apple, AT&T Vulnerable to U.S. Ban of Older iPhones

The Apple products caught up in the import ban imposed by the U.S. International Trade Commission are older, but not irrelevant. In fact, Apple and AT&T—the two companies most affected by the ruling—are particularly vulnerable to limits on off-the-run iPhones.

The revenue hit if the ban is upheld won't be big, but it won't be completely negligible either. The ruling threatens a phone near the end of its life cycle, but one that has played an important role as an entry-level smartphone. As such, it is the clearest sign yet that the years long legal fight between smartphone manufacturers over patents could have a real impact on how the wireless carriers go about their business. Apple hasn't yet made low-cost versions of its popular smartphone. Instead, it has adopted a strategy of selling older models at discounted prices as a way to lure more cost-conscious customers in the U.S. and emerging markets like China. The iPhone 4 in particular has been a big seller, accounting for about 8% of Apple's revenue in the quarter that ended in March, according to analysts at Piper Jaffray. Apple first released the iPhone 4 in 2010, but the device continues to attract customers because of its low sticker price: free at AT&T and Verizon Wireless with a two-year contract.