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Old 04-18-2007, 08:55 AM   #1
NatCh
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Location: Republic of Texas Embassy at Jackson, TN
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iPhone Subsidies?

Apple to Offer Subsidized iPhone?

PMP Today is reporting that AT&T (Cingular) may be offering iPhones with a subsidy for new (maybe renewed?) contracts:
Quote:
American Technology (AmTech) analyst Shaw Wu had it from reliable sources that Apple is considering selling a subsidized iPhone through its exclusive carrier AT&T. “We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts,” Wu wrote. “From AT&T’s perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in ‘guaranteed’ bi-annual revenue.”
The article further comments that part of the monthly fees may go straight to Apple as well, and that analysts are predicting a revenue jump of something like $1.3 billion ... um, in the next year, I guess, they don't really say.


Full article.
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