What AT&T pays Apple for the iPhone

Since none of the commments actually come from anyone who works at at&t mobility or Apple everyone’s guess is just that … a guess. A specualation. When apple/at&t sell the phone at full retail price, meaning the customer pays full price, not subsidize price then everyone will know how much it costs. Apple did to cell phones is what Microsoft did to pc’s … changed everything and raised the bar. Hmm… where have we heard that one before?

It’s pretty easy to figure out the actual price of the iphone. In California the consumer pays tax on the full price of the phone, not the price paid. For instance, for my 8 GB iphone 3G I paid $32.92 in tax, which puts the iPhone 3G 8GB price at $399. Therefore, ATT is paying $200 subsidy for each 8 GB iphone 3G.

http://www.cancelrogers.com/ is calling for a Mass cancellation on July 11 2008 over the iPhone plans that Canadian providers Rogers is offering… Vote in their poll!!!

iwant - a phone, so I bought a Samsung Blackjack. I already have a HP laptop for net surfing, e-mail etc. Why pay more?

On the Apple message boards are Yahoo, we’ve been analyzing this for about a week now. In your figures, the $199 and the $325 appear to be redundant. Either add the $100 to the $199 or else add it to the $325. http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_A/threadview?m=tm&bn=60&tid=2057571&mid=2057571&tof=-1&rt=1&frt=2&off=1

ex ped: I’d like to see your reasoning, but there’s no analysis in the Yahoo message boards link you provide.

“apple will get $200 the price of the phone,apple is in interested in itune sales,apple is a music seller,1000 -99 cent songs is a $1000 the more itunes on people phones and computers the more music they can sell”

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Can someone please translate this into English for the rest of us? Thanks!

I do not believe this bullsh*t at all. I have No idea where Yair whats his name gets his facts, but as I understand, AT&T and Steve Jobs have a very agreeable understandment that AT&T will take on the service end and offer the exceptional high speed service the new 3G will need, in return, Apple stores will sell the new 3G in their stores under strict conditions the phone is set up with an AT&T contract before it leaves the store’s doors. This is total speculation! especially taken into consideration, Apple’s new iPhone, does not have to have an AT&T contract outside the USA. This is how the market is being influenced. *Pure speculation,,,! and these analysts (speculators) should be held accountable for huge losses, just like the credit scammers are!

The way I see it, Reiner’s figures appear reasonable.

So Apple gets avg 250 / phone (half 8 & half 16MB) + 325 (according to Reiner.) then, what percentage are new ATT customers? 1/8 ??? 12%?
That would be another $12 per unit

total 587 average. Pretty darn good!

Of course remember, not all the foreign carriers will be paying this - tho I imagine something similar.

Do we get a pop on this rumor, or a slam down, I don’t know. Seems only negative rumors drive the stock.

apple will get $200 the price of the phone,apple is in interested in itune sales,apple is a music seller,1000 -99 cent songs is a $1000 the more itunes on people phones and computers the more music they can sell

IMHO:

This seems to me a call to other SmartPhone manufactures to innovate or lest be left in the dust rather than simply dropping prices to compete. Perhaps Android will even out-compete the iPhone as open standards and open SDK’s will permit all to develop applicatoins for that platform which in turn will lead to significant innovation (from a software perspective). (AFAIK the iPhone SDK would and will be limited in comparison). I think RIM will lose its hold over time, who really needs a BES anymore…

Ultimately, I believe, openness will be the key to success, either adopt or lose. But for now, I can’t wait to get my 3G iPhone!!

A better way of putting it is that the revenue to Apple per iPhone is $624. Somebody estimated the bill of materials to be $100. If that is correct, this means a gross margin of 84%. At 40 million in sales next year, that is a revenue run rate of $24 billion from the iPhone alone.

I believe the $199 is the cost that is passed on to the buyer, the $325 is the subsidy and the $100 is the new subscriber fee. The total Apple receives is $624, the cost to AT&T would be $199 less since that is picked up by the end user… that’s my take on the article

Is adding the $199 to get your $624 figure redundant, since both $199 and $325 seem to be getting at what the phone subsidy is?
Thanks.