Report: Carriers that pay heavy subsidies for iPhones are not increasing profits

Reuters reports that network carriers which discount Apple's iPhone hoping to lure more customers have not seen an increase in profits and have even lost money in some cases, according to a report by wireless consultancy Strand Consult.

The firm says that of the research it has conducted, not a single carrier has increased market share, revenue, or earnings as a result of carrying the iPhone.

Singapore's SingTel reports falling profits after its iPhone launch, according to the report. Nordic-based TeliaSonera's market share or revenue was not improved by selling the iPhone.

AT&T's second quarter financials, which followed the launch of the iPhone 3GS, reported a net income drop of 15 percent, as we reported. The company still beat analyst expectations for the quarter.

In related news, sales of the iPhone 3GS in Japan have topped handset sales charts in the country, ousting Japan's own popular phone manufacturers, like Sharp and Panasonic, Electronista reports. Japan's handset market is considered insular and an American device making the top of the list could be watershed moment for American handsets, the publication says.

Apple shipped 5.2 million iPhone smartphones last quarter, as we reported, securing its second-best non-holiday quarter ever.