Will Apple (NASDAQ:AAPL) Win and Verizon (NYSE:VZ) Lose in iPhone Deal?

Shareholders and investors in Verizon (NYSE:VZ) are leery of the deal with Apple (NASDAQ:AAPL) which could cost the company up to $5 billion via subsidizing the iPhone over the next 12 months.

Each iPhone sold by Verizon will cost the company about $420, as the price offered to consumers will be $200, while Verizon must pay about $620 for each phone. That's only a reference to the 16 gigabyte iPhone. There is also a 32 gigabyte model.

Before and after the official announcement by Verizon they were going to offer the iPhone on their networks, there was an immediate sell-off of the company, based on these concerns, although they've rebounded some today.

Expectations are Verizon will have to take longer to benefit from their relationship with Apple, as it'll probably take more than the industry average of 1 year to recoup their subsidization of the iPhone.

Verizon was trading at $35.47, up $0.11, or 0.31 percent, as of 1:15 PM EST.