Let's use pretend numbers here, since no one knows exactly what Apple is getting out of AT&T for activations + service. But let's say Apple gets $20 per activation, and a modest 10% per month with an average monthly bill of $100 per iPhone. For the standard two year agreement you have to sign up for, that $400 iPhone is actually worth an additional $240 to Apple (plus that $20 on activation). Multiply that by 250k = $65,000,000 -- not exactly chump change.
Does Apple want everyone to own iPhones? Yes. Will Apple do whatever it can to make sure it gets that extra money from its carrier agreements? Undoubtedly so.
Reader Comments (Page 1 of 1)
Ryan Block @ Oct 22nd 2007 6:37PM
Let's use pretend numbers here, since no one knows exactly what Apple is getting out of AT&T for activations + service. But let's say Apple gets $20 per activation, and a modest 10% per month with an average monthly bill of $100 per iPhone. For the standard two year agreement you have to sign up for, that $400 iPhone is actually worth an additional $240 to Apple (plus that $20 on activation). Multiply that by 250k = $65,000,000 -- not exactly chump change.
Does Apple want everyone to own iPhones? Yes. Will Apple do whatever it can to make sure it gets that extra money from its carrier agreements? Undoubtedly so.