Apple reportedly requires Comcast and Charter to sell iPad, Apple TV as part of iPhone dea...

Posted:
in General Discussion edited June 2019
In a bid to gain access to Apple's popular iPhone, mobile industry newcomers Charter and Comcast reportedly agreed to somewhat onerous terms that require the cable giants to also sell iPad and Apple TV, some of which are offered with carrier subsidies.




Citing people familiar with the matter, CNBC reports Charter and Comcast agreed to Apple's stipulations in return for access to iPhone. The deal was inked some two years ago, months prior to the launch of Charter and Comcast's respective mobile virtual network operator (MVNO) services.

Comcast, which operates Xfinity Mobile, needs to sell a preset number of iPads at a subsidized cost, the report said. Along with a quota "in the thousands," the arrangement sees Comcast eat the difference between iPad's retail cost and the final subsidized rate.

For example, a 64GB iPad mini with cellular connectivity costs $492.99 through Comcast, while the same device sells for $529 on the online Apple store. Charter's Spectrum Mobile MVNO does not stock iPad mini, but a 6th generation cellular-enabled 9.7-inch iPad listed on the carrier's website carries a price tag commensurate with retail.

While Apple reported strong iPad revenue for the first quarter of 2019, the deal with Comcast was made at a time when sales were slumping. The report suggests Apple added terms to Comcast's iPhone agreement in an attempt to goose sales of the then-struggling tablet line.

Details of Charter's iPhone arrangement could not be learned, but the company does provide customers the option to add a 32GB Apple TV to their existing Spectrum cable subscription for $7.50 a month. After doling out $180 over a 24-month period, customers can keep the Apple TV. Alternatively, subscribers can lease a Charter set-top box for the same monthly fee, but are not allowed to keep the device when the contract expires.

Sources say the deal has helped Charter become the largest third-party seller of Apple TV units.

Thanks to iPhone's mass appeal, Apple is able to leverage advantageous deals from the world's largest wireless carriers. In Japan, for example, market leader NTT DoCoMo reportedly promised a 40 percent quota to get its hands on iPhone after losing marketshare to competitors that had access to the popular handset. A similar scheme in Korea landed Apple in hot water with local antitrust authorities in 2018.

Comments

  • Reply 1 of 13
    mike pmike p Posts: 4member
    I wish they would have required Comcast to support Apple TV's single sign-on.
    edited June 2019 comcastsucksracerhomie3doozydozenmacseeker
  • Reply 2 of 13
    apple ][apple ][ Posts: 9,233member
    I currently have spectrum cable which is charter, and I have a cable box.

    I might as well return that cable box and get an Apple TV 4k instead, if that's possible. I'll be paying the same per month, but at the end of 24 months, I'll basically have a free Apple TV, as opposed to renting the cable box for 24 months.
    edited June 2019 AppleExposed
  • Reply 3 of 13
    mike p said:
    I wish they would have required Comcast to support Apple TV's single sign-on.
    I created an account just to agree with this. I can't believe they wouldn't force them to do that.
    mike pbala1234matrix077doozydozenAppleExposed
  • Reply 4 of 13
    mike p said:
    I wish they would have required Comcast to support Apple TV's single sign-on.
    Here’s to hoping they did but the announcement won’t come until Apple TV+ is launched.
    doozydozenAppleExposed
  • Reply 5 of 13
    MacProMacPro Posts: 19,784member
    Comcast agreeing to onerous terms?  Wow. talk about taking your own medicine, I love it!
    psliceAppleExposed
  • Reply 6 of 13
    EsquireCatsEsquireCats Posts: 1,268member
    mike p said:
    I wish they would have required Comcast to support Apple TV's single sign-on.
    I created an account just to agree with this. I can't believe they wouldn't force them to do that.
    I'd say that the iPad/AppleTV stipulation was due to this vendor wanting rebates inline with larger carriers. Single sign on would be a different discussion, especially as this isn't a trivial change for providers.
  • Reply 7 of 13
    pscooter63pscooter63 Posts: 1,080member
    As far as Spectrum is concerned, this is rather dated news.   We "cut the cord" back in February, and the customer service center already had a dedicated display set up for ATV, and made that offer to me.
  • Reply 8 of 13
    davendaven Posts: 707member
    I wish Charter had the iPad deal. I already have AppleTVs but need a new iPad and I'm on Charter internet.
  • Reply 9 of 13
    sdw2001sdw2001 Posts: 18,020member
    The report suggests Apple added terms to Comcast's iPhone agreement in an attempt to goose sales of the then-struggling tablet line. 


    OK, AI...let's calm down a bit.  Struggling?  Apple is selling almost 40 million iPads a year.  I understand sales are down, but it's hardly a "struggling" product.  It has nearly 30% market share.   The tablet market is difficult...that's another topic.  

  • Reply 10 of 13
    jfelbabjfelbab Posts: 4member
    I purchased a new 6th gen 128Gb iPad from Comcast nearly a year ago for $120.  So they were selling iPads before and the price was ridiculously low for triple play subs.  This is the same model Apple was selling in their store for $429.
  • Reply 11 of 13
    SpamSandwichSpamSandwich Posts: 33,407member
    If both parties agree to the deal then it’s not “onerous”.
    mike1
  • Reply 12 of 13
    AppleExposedAppleExposed Posts: 1,805unconfirmed, member
    I would have required they replace their ugly cable boxes with Apple TV 4K. Both would win as Apple would take all the R&D and manufacturing costs giving the cable providers one less thing to worry about.
  • Reply 13 of 13
    I was surprised that I recently purchased a new iPad from the Apple store telling them I wanted to connect to the Xfinity Mobile plan. When I attempted to activate the service, I was told that only iPads purchased from the Xfinity store is supported. So Apple Store employees should be educated on the Xfinity mobile service. Wow, that is truly unfortunate that one can not buy from the Apple store and use their product as designed. Thank you for this article as I was blaming Xfinity but seems that both parties made this strange business decision. As for the Xfinity mobile service, I decided to test drive their service with a Samsung phone instead of a iPhone before moving my older iPhones from AT&T. So far the Xfinity mobile test drive is going well but this current policy is giving me pause. By the way, I do like Xfinity despite their service price increase strategy for their ongoing services.
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