AT&T paying Apple $425 in subsidies per iPhone?

Posted on Monday, June 23 2008 @ 22:35 CEST by Thomas De Maesschalck
Analysts believe AT&T may be paying Apple $425 in subsidies per iPhone:
As a general rule, wireless carriers pay about $200 to subsidize the price of a smartphone. But AT&T may be paying Apple $325 per unit for right of carriage, Oppenheimer financial analyst Yair Reimer wrote in a report.

Additionally, Reimer said AT&T will pay another $100 for subscribers signed up in Apple stores. When you add these figures to the retail price of the handset, AT&T could be paying as much as $624 for the 8-GB iPhone 3G, and $724 for the 16-GB version.

Representatives from Apple and AT&T didn't comment, but other analysts said Apple is receiving a tidy sum from the wireless carrier.

Piper Jaffray analyst Gene Munster estimated in a report Apple will receive an average of $466 per iPhone. Bernstein Research's Toni Sacconaghi said in a report that he expects iPhones to be sold to carriers for anywhere from $350 to $700 each.
Source: InformationWeek


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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