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The Almighty Buck

Submission + - Apple makes $831 on each iPhone 3

Ponca City, We Love You writes: "The New York Times reports that Gene Munster, an analyst at Piper Jaffray, has studied Apple's financial statement and come to the conclusion that AT&T appears to be paying Apple $18 a month, on average, for each iPhone activated on its network or up to $432 over a two year contract. This shows how much incentive Apple has to maintain its exclusive deal with AT&T rather than to sell unlocked phones or cut deals with multiple carriers. Last week Apple disclosed that 250,000 iPhones had been purchased but not registered with ATT that Apple thinks are being unlocked so Apple has now taken action to curb unauthorized resellers by limiting sales of the iPhone to two per customer and requiring that purchases must now be made with a credit or debit card — cash will not be accepted. The original story on what was happening to the unlocked phones was discussed on Slashdot."
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Apple makes $831 on each iPhone

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  • Is that even legal? That would be discrimination, as not everyone has plastic. Of course, the rate of people with no credit card buying an iPhone would probably be really low, but that doesn't make it legal.
  • If their estimates are correct, that's a $lot$ of reasons Apple doesn't want you to unlock the phone.
  • I'd say in pure economic interests that Apple has made a nice way of ensuring a constant cash flow. Even without the Jobbesian RDF, the iPhone is a nice package overall (coming from a Palm and Windows Mobile user) in terms of hardware and unit price, which directly translates to must-haveness. Apple would have to be REALLY stupid not to capitalize in on a cash cow like that. I suspected something like this back when Apple announced that it'd be through AT&T......evil corporation + cash cow = profit!!

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