Apple’s allegiance to AT&T

• mbeauch

  

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  Posted: 10 August 2010 02:27 PM #16

  oliviathn - 10 August 2010 07:23 AM

  The original iPhone makes more sense for an exclusive contract. The iPhone is sold without subsidies. Apple has a copy of $ 20 per month an additional shared services agreement for the volume and the unique.

  I can’t even imagine what the payment from AT&T would be with the number of units there are now. AT&T saw the writing on the wall and stopped it. It has worked out pretty good for Apple/AAPL.

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• DawnTreader

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  Posted: 10 August 2010 11:21 PM #17

  mbeauch - 10 August 2010 05:27 PM

  oliviathn - 10 August 2010 07:23 AM

  The original iPhone makes more sense for an exclusive contract. The iPhone is sold without subsidies. Apple has a copy of $ 20 per month an additional shared services agreement for the volume and the unique.

  I can’t even imagine what the payment from AT&T would be with the number of units there are now. AT&T saw the writing on the wall and stopped it. It has worked out pretty good for Apple/AAPL.

  But the number of units sold and under contract wouldn’t have risen to the levels of today without the subsidy arrangement. Consider, too, through the subsidy arrangement Apple has increased the ASP on the iPhone. This has allowed the company to release more advanced phones with more costly components without a ding to margins.

       

• mbeauch

  

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  Posted: 11 August 2010 12:07 AM #18

  DawnTreader - 11 August 2010 02:21 AM

  But the number of units sold and under contract wouldn’t have risen to the levels of today without the subsidy arrangement. Consider, too, through the subsidy arrangement Apple has increased the ASP on the iPhone. This has allowed the company to release more advanced phones with more costly components without a ding to margins.

  
  DT, I was being greedy, looking at all things in a skewed way. I do understand that without the subsidy there would not have been as many phones sold.

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• DawnTreader

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  Posted: 11 August 2010 12:22 AM #19

  mbeauch - 11 August 2010 03:07 AM

  I do understand that without the subsidy there would not have been as many phones sold.

  And far more phones to be sold over the next few years.