iPhone 3G - It's like a magical money tree.
According to Oppenheimer analyst Yair Reiner, AT&T is paying a subsidy of $325 for each new iPhone 3G. The typical smartphone gets a subsidy of about $200.
The analyst goes on to state this high rate "reflects AT&T's faith in the iPhone's ability to attract new subs and increase ARPU (average revenue per user)."
If the trucks of cash headed to Apple weren't full enough, AT&T will pay $100 for each new subscription that signs up at the Apple Store. That means, for every iPhone sold at the Apple Store, AT&T will pay Apple a total of $425.
The analyst doesn't state if there is a price difference for the 8GB and 16GB models.
No wonder AT&T is charging $5 for 200 text messages.
Via AppleInsider
Anonymous
June 26, 2008 at 10:07am
Money tree, huh? I think "money suck" would be a better term, from the consumers point of view, anyway.
I guess it's better for Apple to have the money than AT&T.
Anonymous
June 20, 2008 at 8:41am
Faith has nothing to do with it. You won't be able to walk out of the store with a 3G iPhone if you don't sign an AT&T contract.
Thanks to all those who resold unlocked phones.
