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
Links:
[1] http://www.maclife.com/user/rbaldwin
[2] http://blogs.barrons.com/techtraderdaily/2008/06/19/apple-oppenheimer-says-att-iphone-subsidy-is-325/
[3] http://www.appleinsider.com/articles/08/06/19/
[4] http://www.maclife.com/article/iphone_3g_it_prints_money
[5] http://www.maclife.com/article/iphone_for_199_not_so_fast_says_at_t