Other World Computing
Feature Graphic
The Apple Watch
Feature Graphic
Switching to iPhone 6 Plus, Apple Watch Role Playing, Over-Under + More
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
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

- Apple Watch Review Diary - The Controls
- Apple Watch Review Diary - The Hardware
- Apple Watch Apps, shipping issues, pop culture reactions
- Some practically useful early Apple Watch apps
- Ars: Inside Apple's ResearchKit
- Apple VP Angela Ahrendts sends video message on Apple Watch to retail employees
- Keynote, PowerPoint apps add support for Apple Watch
- How Apple Watch measures your heart rate
- AnandTech review of new MacBook
- Podcast: Apple Watch try-on experience, new MacBook
- 1Password 5.4 for iOS brings Apple Watch support
- Reddit Infographic visually describe Apple Watch UI
- Andy Hertzfeld on latest Jobs biography
- OWC Envoy Pro mini brings up to 480GB on a USB 3.0 stick
- Apple sets June 8th for WWDC
- Apple releases ResearchKit medical research framework
- The Apple Watch store appointment experience
- Podcast: Picking an Apple Watch, 1Password OTP
- Apple Watch goes on pre-order Friday exclusively online
- Apple VP Ahrendts tells staff best way to buy Apple Watch
- 1Password for Mac 5.3 adds TOTP Password support
- Star Wars: The Digital Movie Collection comings to iTunes
- HBO Now launches for iOS
- Apple offering employees up to 50% discount on Apple Watch at launch
- Apple Watch Guided Tours


Browse and search for more articles

Insanely Great Mac Logo

IGM Specials

Mercury Extreme SSD
60GB - $48.79
120GB - $73.79
240GB - $128

480GB - $228

960GB - $649

iMac RAM (Retina)
8GB Kit - $79
16GB Kit - $165
32GB Kit - $328

External Storage
500 GB - $129
1 TB RAID - $239
Mobile RAID - $199

Power2U AC/USB Wall Outlet - $20

Thunderbolt 2 PCIe Expansion - $189

Thunderbolt 2 HDD Enclosure - $299

Radeon HD 7950 GPU
$448


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