Comments on: AT&T Paying Apple $325 to $425 per iPhone 3G in Subsidies?

By: Soityimmene

Soityimmene — Mon, 24 May 2010 00:14:56 +0000

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By: Jon

Jon — Sat, 13 Jun 2009 04:02:39 +0000

im waiting for them to say…okay we havent seen as many iphone sales as we had hoped…and just subsidize it already ATT. they already arent offering some of the new features like MMS or Tethering…ATT must be feeling the pain. also if this pricing keeps up, they wont enjoy the millions of new customers (wanting only the iphone, NOT their service). im sure they are in the same situations with all the other generic phones they sell, not making very much money off retailing a phone, but more making money on the actual service. i got the iphone 3G and even though i got the lowest plan, i end up paying 90 dollars a month so i end up paying 2,160 for the contract over 2 years. im sure ATT TAKES A HEALTHY chunk of that. even if they had to pay to subsidize the phone.

By: ooooz

ooooz — Sat, 21 Jun 2008 10:29:49 +0000

anyone here plz

By: Scott Bourne

Scott Bourne — Sat, 21 Jun 2008 06:53:15 +0000

Actually I also said that in an interview with an AT&T executive, I was given the distinct impression that the fee is much lower. That combined with an ETF of only $175 leads me to say bunk.

By: sam

sam — Fri, 20 Jun 2008 19:46:13 +0000

By: Rene Ritchie

Rene Ritchie — Fri, 20 Jun 2008 17:27:02 +0000

It will be interesting to see if Apple breaks out iPhone unit earnings at the next CC, and we can work out what the average is they get per iPhone sold. More than $199, but how much more? (Obviously AT&T wouldn’t pay what the iPhone unlocked would go for at retail, but I’m still guess it’s a nice chunk of change). Enough to keep Apple’s historic ~30% hardware margins? Or is Apple taking a cut to grow market share there as well?

By: Dieter Bohn

Dieter Bohn — Fri, 20 Jun 2008 16:29:08 +0000

"[T]he early termination fee for the iPhone is $175. If the subsidy were $325 - that would be the early termination fee."

That's just wrong. The ETF is standard across all AT&T phones. Do you really think AT&T pays the same subsidies to manufacturers across all phones, from the cheapest non-data-flip all the way up to their top of the line, likely to get them a bunch of data and sms cash, phones?

By: Tom

Tom — Fri, 20 Jun 2008 15:44:37 +0000

I don't currently have the first iPhone, and I am about 18 months from being upgrade eligible. If these new subsidy rumors are true, I am screwed.

I want this thing, but there is no way I am paying $700 for it....