Analyst: AT&T Paying Apple $325 for Each iPhone 3G

Roberto Baldwin's picture

Analyst: AT&T Paying Apple $325 for Each iPhone 3G


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

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Anonymous

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.

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Anonymous

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.

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