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

Posted:
in iPhone edited January 2014
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.

Comments

  • Reply 1 of 4
    SpamSandwichSpamSandwich Posts: 30,836member
    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.
  • Reply 2 of 4
    cosmonutcosmonut Posts: 4,872member
    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.
  • Reply 3 of 4
    brussellbrussell Posts: 9,812member
    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.
  • Reply 4 of 4
    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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