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The amount of money Apple gets from AT&T per iPhone has allegedly been confirmed

post #1 of 5
7/23/07 at 1:55pm
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http://www.thestreet.com/s/sweet-iph.../10369581.html

"People close to the companies tell TheStreet.com that AT&T is paying Apple a bounty of between $150 and $200 per phone -- plus $9 a month per phone over the life of the typical two-year customer contract."

That's up to $416 per iPhone!

If this is true, I wonder what it will do to the stock. Well, I wonder how much it will do the stock.
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post #2 of 5
7/23/07 at 2:26pm
Quote:
Originally Posted by december View Post

http://www.thestreet.com/s/sweet-iph.../10369581.html

"People close to the companies tell TheStreet.com that AT&T is paying Apple a bounty of between $150 and $200 per phone -- plus $9 a month per phone over the life of the typical two-year customer contract."

That's up to $416 per iPhone!

If this is true, I wonder what it will do to the stock. Well, I wonder how much it will do the stock.

I still just consider this rumor, no matter how the reporter characterizes it... Unless it's coming from Apple or at&t, that is.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #3 of 5
7/23/07 at 2:41pm
Let me get this straight:

Revenue streams for each company from the iPhone:

Apple -
iPhone itself
Service fee kickback
iTunes content sales

AT&T -
Activation
Remaining monthly service fees

Seems like the scales are tipped heartily in Apple's favor unless monthly service generates that much profit for AT&T.
Living life in glorious 4G HD (with a 2GB data cap).
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Living life in glorious 4G HD (with a 2GB data cap).
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post #4 of 5
7/23/07 at 3:18pm
Quote:
Originally Posted by CosmoNut View Post

Let me get this straight:

Revenue streams for each company from the iPhone:

Apple -
iPhone itself
Service fee kickback
iTunes content sales

AT&T -
Activation
Remaining monthly service fees

Seems like the scales are tipped heartily in Apple's favor unless monthly service generates that much profit for AT&T.


Well, if AT&T is paying Apple $150-200 per phone they sell, that means they're retaining making $400 or so on every phone they sell. That's an almost unheard-of profit for a reseller.
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post #5 of 5
7/23/07 at 3:21pm
Quote:
Originally Posted by BRussell View Post

Well, if AT&T is paying Apple $150-200 per phone they sell, that means they're retaining making $400 or so on every phone they sell. That's an almost unheard-of profit for a reseller.

$150-200 bounty (above and beyond the cost of the iPhone to AT&T) is how I read it.
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