Apple tax results in an $831 iPhone, maybe

**Gigacore** · 28-10-2007, 09:40 AM

The New York Times's Bits blog says it has some numbers of the size of AT&T's payments to Apple from iPhone users from Gene Munster, an analyst at Piper Jaffray. They are based on AT&T's financial statements of "deferred revenue":

Quote:

His bottom line is rather shocking: AT&T appears to be paying $18 a month, on average, to Apple for each iPhone activated on its network. That adds up to $432 over a two year contract. In other words, Apple will receive $831 for each iPhone it sells. (It's a little less for iPhones sold in AT&T stores.) He can't tell, of course, what makes up that average. Apple may, for example, receive higher payments for customers new to AT&T or those who buy more expensive monthly plans.
Mr Munster says he was surprised by the numbers. He previously had estimated that Apple received $6.50 a month from AT&T. A carrier will typically subsidize the price of a high-end phone by about $200, he says. With the iPhone, AT&T is spreading the payments out over time, but ultimately putting up twice the typical amount.

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Apple tax results in an $831 iPhone, maybe

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