Is AT&T paying Apple $18 per iPhone per month?

By Jonny Evans

October 25, 2007 12:00 PM ET

Comments

(4)

Macworld UK - Piper Jaffray analyst Gene Munster believes Apple is taking $18 per month for each iPhone subscriber under its deal with AT&T.

Apple has confirmed it has reached a revenue deal with AT&T, but has never revealed what it is. Munster -- who once thought Apple was receiving $3 per subscriber -- has changed his mind based on information gleaned from Apple's most recent financial report.

Apple's accounts describe $118 million in iPhone and iPhone-related revenue during the quarter. Apple has previously confirmed plans to account for iPhone (and Apple TV) sales across a two-year period.

Munster took the 1.4 million iPhones Apple's sold so far, took away the 250,000 units Apple said it believes were bought to unlock from AT&T's network, and calculates that 1.15 million revenue-generating iPhones contributed to Apple's quarter.

If Munster's estimates are correct, AT&T will pay Apple $432 per iPhone subscriber across the two-year life of the contract.

Reprinted with permission from

For more Macintosh news from the U.K., please visit Macworld.co.uk.

Comment Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Jump to comments

AT&T

Additional Resources

WHITE PAPER

Do You Know the 7 Steps to Successful Data Migration?

Approximately 60 percent of data migration projects overrun time or budget, while some fail completely. Download this white paper, "Enhancing Your Chance for Successful Data Migration," to learn the critical steps you need to take to execute a data migration project with minimum cost and risk to your business.

WHITE PAPER

Total Cost of Ownership of Server Computing Vs. PCs

Read the Gartner research note to learn why the TCO of a server-based computing deployment used to deliver all applications to users is around 50% lower than that of an unmanaged desktop deployment.

WHITE PAPER

IDC White Paper: Linux in a Global Recession

Economic downturns have a tendency to accelerate emerging technologies, boost the adoption of effective solutions, and punish solutions that are not cost competitive or that are out of synch with industry trends. This IDC White Paper presents the results of an IDC survey of 330 companies in Western Europe, Asia/Pacific and the Americas that measures the receptiveness to Linux and takes into consideration changing views driven by the disruptive economic environment that businesses face today.