AT&T Subsidizing the iPhone $325Apple, Cell Phones, iPhone, Rumor June 20th, 2008
A recent analyst note from Opeenheimer claims that AT&T is subsidizing the iPhone $325, this is how Apple was able to reach such a low price on the iPhone 3G ($199 for 8GB and $299 for 16GB).
This isn’t too far fetched, since AT&T was previously doing a revenue share deal with Apple monthly for each iPhone subscriber it wouldn’t be surprising that Apple would want to get that money up front instead.
On top of the $325 the analyst also said that AT&T is giving Apple $100 for each iPhone 3G sold at an Apple store, as commission.
This seems about right to me, since AT&T isn’t giving Apple money monthly anymore I’m sure in the exclusivity agreement some sort of revenue sharing was mandatory but it seems like AT&T is getting the short end of the stick. From everything that I’ve seen the iPhone is only costing Apple $100 to manufacture now, which means they are making profit all over the place, from the App Store, from the iTunes Store, from the actual sale of the phone, and from AT&T. And yet, what is AT&T left with, I guess the right to say that they have the coolest phone on the block.