Optus to raise handset prices

Optus is set to push the price of popular smartphones upwards in a bid to improve profitability, according to a Goldman Sachs report.

Optus will pay approximately $200 less in handset subsidisation for popular smartphones like Apple's iPhone and Samsung's Galaxy, s reported in the SMH.

This comes in the wake of similar shifts away from handset subsidisation from competitor Vodafone earlier this year.

Goldman Sach's research analyst Raymond Tong commented on the report, saying "While Optus has stated its desire to stabilize/increase its market share; these moves are consistent with its goal of driving profitable growth."

Tong also suggested that the move may prompt Telstra to make a similar increase in their handset prices.