Other World Computing
Feature Graphic
iPhone 6/6+, Hot Thighs and Tights Pants, What's Wrong with iPhone Lines
Feature Graphic
How to get photos on to iOS 8 iCloud Photo Library
Feature Graphic
iPhone pre-orders, iOS 8, Tim Cook Interview + More
Feature Graphic
Podcast: iPhone 6, Watch, Apple Pay, etc, etc
Feature Graphic
Podcast: Cloud security tips, TheFappening, Apple Event, plus more
IGM Logo

| Home | Contact | Advertising | Search | Submit


AT&T's new iPhone deal



By

Reuters reports that AT&T will shoulder part of the price of the 3G iPhone, from $200 to $500 per phone, according to analyst estimates. With current versions of the iPhone, the carrier pays Apple a percentage of monthly subscriber revenues, a practice that's ending.

"With dilution running at levels we never fathomed, we believe AT&T is assuming more risk than the previous arrangement," says JPMorgan analyst Michael McCormack. "We question whether a handset exclusivity agreement should warrant such a dramatic financial impact while other successful carriers have not found it necessary."

AT&T said the subsidy, aimed at boosting volume sales, will cut earnings per share by 10¢ to 12¢ in 2008 and 2009.

Apple Store


Apple, on the other hand, is expected to see its earnings dip only about 3¢ a share this year, according to some estimates, as it forsakes the percentage of recurring monthly service revenue it got from AT&T's iPhone users.

Editor's note: Previously, over 50% of iPhone buyers have been customers new to AT&T. Moreover, the iPhone recently lost market share to RIM and Palm, due to more aggressive pricing and marketing.

If AT&T and Apple want to keep this gravy train rolling, then they've obviously made the right moves. How much all of this costs each player in relative terms is a pointless endeavor at this point...

What's your take?

4GB and 8GB iPod nano with video—starting at $99. Plus free shipping.


Trans Intl

Spacer

Connect with Insanely Great Mac


spacer

Recent Articles

- Tim Cook: Apple Watch in April
- Apple’s Q1 Earnings
- 1Password gets update on Mac, iOS
- Cringely on IBM's massive restructuring
- Report: Apple Watch battery life may be around 19 hours
- Twitter launches recap feature
- Rogue Amoeba Audio Hijack get major overhaul
- Khan Academy brings lessons to iPad
- Evernote Scannable App
- Podcast: CES wrap-up of gadgets, ho or no adventures and more
- Looking at Flickr camera ownership for 2014
- iOS 8 beta previews Apple Watch companion app
- Lifeproof LiveActiv Battery Backup Case and Smart Mounting System - CES 2015
- USB 3.1 storage from Other World Computing - CES 2015
- ScanSnap ix100 portable/mobile scanner - CES 2015
- WEMO Zigbee products for doors, windows, smoke detectors, keychains, and more - CES 2015
- FLIR One thermal camera for iOS w/ Lightning Connector- CES 2015
- iDevices Switch offers iOS 8 HomeKit compatibility - CES 2015
- Upcoming Transwarp from OWC brings better than Fusion Drive to older Macs0 CES 2015
- Anova Bluetooth Sous Vide Cooker - CES 2015
- Mountie from Ten 1 Design mounts your tablet to your display - CES 2015
- iPin Laser pointer and iPin BTtogo presentation gadgets for iPhone - CES 2015
- Griffin Reversible USB cable in iPhone colors - CES 2015
- Griffin iTrip AUX Bluetooth and iTrip AUX AutoPilot for cars - CES 2015
- NuMount VESA adapter announced for newer iMacs


Browse and search for more articles

IGM Specials

Mercury Extreme SSD
60GB - $47
120GB - $67
240GB - $134

480GB - $245

960GB - $619

iMac RAM
8GB Kit - $97
16GB Kit - $195
32GB Kit - $394

External Storage
500 GB - $129.99
1 TB RAID - $219.99
Mobile RAID - $190

Power2U AC/USB Wall Outlet - $15

Thunderbolt 2 PCIe Expansion - $189

Thunderbolt 2 HDD Enclosure - $299

MacBook Pro RAM
16GB Kit - $148
21GB Kit - $288


Other World Computing

Other World Computing





Home

About

Advertising

Search

Copyright 1995-2015 Insanely Great Mac. All rights reserved.
Privacy Statment | Terms of Service | Editorial Policy