Apple's iPhone loss is Verizon and AT&T's gain, and carrier subsidies are to blame

Those were the days, but users upgrading from an iPhone 6 to 7, are in for a sticker shock, admits Tim Cook.

Apple will be fine. Despite the unprecedented 15% drop in iPhone sales, its $19.97 billion net income is just shy of the record-setting $20.07 billion a year ago. Apple's cash pile grew to $245 billion, and the installed user base of iOS devices grew to 1.4 billion, paving the way for future increases in the already record-breaking services revenue which has the highest gross margins out of all of Apple's business segments.

Still, the top revenue ...