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More details on iPhone subsidy… revealed

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According to this report from Macworld, AT&T is paying Apple $325 for each iPhone 3G it sells, a report claim… (take it with a little salt… for now)

Here’s the excerpt:

Speculation as to just how much Apple is charging mobile firms for each iPhone 3G has been ongoing since before the product launched, as it became apparent Apple was shifting from its previous revenue-sharing strategy.

The subsidy is more than 50 per cent higher than most other smartphones, leading the analyst to say this reflects the carrier’s confidence that iPhone 3G will lure in new subscribers and help it make money on other services, such as data plans.

Apple’s move means rival firms such as Research In Motion and Nokia will be challenged to deliver devices that match the iPhone in features, at prices that compete.

The end result is that Apple will earn just as much money under the new way of selling the iPhone as under the old, with the main difference being all the money will be up front, rather than deferred.

I wrote in a earlier post that predicted that… well, isn’t it obvious? 🙂 Apple commands a premium and they are confident about that!

Written by gooddealz

June 21, 2008 at 2:02 pm

Posted in News Only

2 Responses

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  1. That’s smart how apple makes sure they get their cut and leaves the rest to AT&T. I think I posted information like this on my iPhone news site. (


    June 21, 2008 at 10:38 pm

  2. Good iPhone focus site! Thanks.


    June 22, 2008 at 4:32 am

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