Apple makes $432 on each iPhone account
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We knew that Apple was pulling in a healthy sum of money from AT&T on every iPhone activation, we weren’t sure just how much they were making…until now. The New York Times has executed an in depth analysis of Apple’s recent financial statement, and have come to a couple of conclusions about AT&T’s financial relationship with Apple. According to the NY Times, AT&T may be paying Apple as much as $18 a month for each iPhone currently running on its network. Take that, RIM! This amounts to $432 over the course of a 2-year contract, which is a pretty sizeable payout. Combined with the $399 price tag of the 8 GB iPhone itself, this gives Apple a total of $831 for each iPhone that leaves its shelves. This, of course, doesn’t account for any manufacturing costs or incidentals, but it still provides a pretty interesting window into Apple’s iPhone finances if it all pans out to be accurate.
So they screw you and att doesn’t even get anything?
Where’s the love, man? Where’s the love?
Well, if those numbers are true, then as a stock holder of Apple, I’m thrilled.
Apple is screwing AT&T though, not the consumer. The price of the phone is decent, and the plan offered with the unlimited data is good. Certainly not screwing the consumer.
AT&T did get a lot of new customers from that phone alone. Maybe that is a decent payoff for them.
Does seem like a pretty hefty payout for each phone though.
Who really cares? I sure don’t
Viva SPRINT
Doesn’t matter for the consumer.
ATT knew what they were doing and they had a great quarter and picked up alot of customers so dont feel sorry for them.
Good device and good plan. No problems here, very happy.
Win Win Win for Apple, AT&T and the consumer
i dont give two shits how much money they are making off the phone. just allow for 3rd party apps for christ’s sake!!!
OK fine they aren’t screwing anybody but att screws over people all the time so you can’t say they aren’t screwing over the consumer.
Joshua,
Why are you bringing RIM into this? They are doing just fine, thank-you. Have you checked their numbers lately? No one will have to hold a tag day for RIM.
And let’s not forget that the BB 9100 and BB 9300 series will be coming out in 2008. All CrackBerry users (and abusers) are ecstatic!!
Hang on and be prepared to take a great ride.
- CB
@Mr Risto
Sprint sucks…
@The OP
I’ve seen this story floating around the web. I kinda doubt the sum is that high. If anything it’s only for new customers and I still don’t think it’s that high. If it’s for existing customers that means ATT is only making 2 dollars on each new iPhone that an existing customer purchases. I HIGHLY doubt that.
Like I said I think that that amount is a little more probable for new customers but still too high I think.
How is this a win for the consumer JJLO? Unless you are an Apple fan that takes everything they say and do as the gospel I feel like this is the final nail in the ultimate screw job. Not only are they bleeding the consumer for every possible dime but they make it almost criminal to want to open the phone to third party apps.
I guess things do come full circle. Apple is the new Microsoft.
@dario69
I sometimes feel sorry on how some Apple fans seem to preach about how great their devices are and how open things are because they are from this company, and yet, I cannot run OSX on my VAIO, or add 3rd party apps on my iPhone without having to go through a bunch of hoops! What good is a web browser if you cannot save files and then browse them later! Maybe I want to buy a song with Amazon and not iTunes!
And have you noticed that, all of a sudden, everyone became a phone expert just because the iPhone was released!?
First, what’s BGR’s weekly quota for Apple/iPhone blurbs?
Second, how much is Apple/at&t paying you?
@dario
As consumers we decide how we spend our dollars. You either make a decision to buy or not buy the iphone. Those that bought the iphone had their reasons. Those that have not bought the iphone have their reasons on why they did not. Some bought the phone and found that it did not have all they wanted. Others bought the iphone and have been delighted. At the end of the day the consumer put in motion the ability for apple to make the profit that it does on the iphone with a purchase. The consumer made the decision to help AT&T make the profit that it made with a purchase. This happened because the consumer had the free will to decide. That is a win win win.
another iphone news.. geez people!!
Iphone cant get enough, whats the latest on the 16 gig model?
Does anyone know the URL for the FCC’s direct link to where they post approved devices?
Google is not pulling anything up that I can find
I want an Iphone
Great post.
@dumsum05
I know you can’t run OSX on your VAIO, but can run windows on a mac.
actually Apple makes 45% of the monthly data plan for as long as the customer keeps it. So $18 is about correct for those who have the $40 dollar plan.
“Apple is screwing AT&T though, not the consumer. The price of the phone is decent, and the plan offered with the unlimited data is good. Certainly not screwing the consumer.”
This one was interesting, as an AT & T Customer, you are in turn screwed too, as AT & T is not paying money out of their pocket, but asking YOU to pay that money when you signup the 2 year contract!
What an Apple FanBoy wow…
@jman
Where do you get 45% from? From the numbers I’ve seen with Apple’s contract with ATT they’re more like 10-20 percent or around 3-8 dollars per customer.