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Via BuzzFeed

Apple Getting Cut From AT&T Per Month From iPhones?

Posted July 19, 2007 2:00 PM by Tanner Godarzi
Categories: AT&T Competition Deals 

imageThis statement has yet to be confirmed but I strongly believe it to be true.  Piper Jaffray analyst Gene Munster claims that AT&T is sharing $3 - $11 per iPhone subscriber per month with Apple. Could this level of control have caused other providers to reject the iPhone, Verizon included?

Exact details are scarce at the moment which Piper Jaffray has admitted to so this is basically an estimates game but the proof is seemingly right in front of our eyes. Munster estimates that Apple is receiving $3 per current AT&T subscriber with an iPhone and as much as $11 per new subscriber with an iPhone

While the revenue sharing is a good deal for Apple it may later ead to trouble with AT&T and potentially other problems in the Cellular world. The bad is customized plans will have to be created in order to accomodate Apple’s demands and providers will have to upgrade their network just for one phone when other phone manufacturers could be blocked off from these upgrades or will not invest in these new technologies.

In addition to customized plans (the effect could go either way, positive or negative but it will force providers to rethink their strategies and potentially charge more) there is one significant problem with revenue sharing. The iPhone has to be locked in to networks that cooperate with Apple’s demands which requires a tight grip on the iPhone. This essentially forces providers to consider carrying the iPhone or lose significant market share.

Via: Arstechnica

Comments

  1. Until the iPhone is completely broken into that is:

    http://iphone.fiveforty.net/wiki/index.php?title=Main_Page

    --
    http://free-iphone-apple.blogspot.com/

    Posted by mark on July 19, 2007 3:55 PM

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