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AAPL Stock: 524.94 ( + 5.93 )

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iPhone revenue-sharing deal exposed?

updated 04:25 pm EDT, Tue July 24, 2007

iPhone revenue-split deal

Apple is receiving unprecedented amounts in a long-suspected revenue-sharing agreement with AT&T, according to the market publication TheStreet. Sources claimed to be close to the two companies suggest that AT&T is paying Apple between $150 and $200 per purchased iPhone, plus another $9 a month for the duration of the mandatory iPhone contract (normally two years). This is even higher than what was predicted by the research firm Piper Jaffray, which amounted to $3 a month for existing AT&T subscribers, and $8 for new customers.

Should the new report be accurate, it could produce a dramatic surge in the price of Apple stock, which is already expected to surpass the $200 amount in the near future -- possibly by the end of 2007. The deal should still benefit AT&T as well, since the company will receive at least $51 a month from each customer's service plan. The deal is "not at all that bad for AT&T," says Roger Entner of IAG Research.




by MacNN Staff

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Comments

  1. hokizpokis

    Joined: Dec 1969

    0

    bullish on AAPL

    can't understand today's sell-off... false and misleading news can hurt in the short term...

    hey but a welcome buying opportunity none the less!!

    for those short term investors...

    please imagine ware AAPL will be in 10 years...

    then think how foolish you'll feel in the future if you didn't hold on to a few shares...

    AAPL

  1. OtisWild

    Joined: Dec 1969

    0

    Great for AAPLholders....

    ... not so much for my wallet :p

    Luckily I'm waiting until the next one comes out, which will have 3G, video capture, and all the other good stuff they neglected to put in this one.

  1. kirkrr

    Joined: Dec 1969

    0

    This is bad why?

    Exposed? Sounds like you have uncovered a bad thing. This is kinda' like blaming CEO's for taking exorbitant salaries that the board of directors offer. "Naw, that this too much, take some back".

    If Apple was astute enough to negotiate a great financial deal, AND it works out to be a win-win for the companies, what is the problem?

    Even the iPhone data plan is half the price of the identical data plan from AT&T for a Blackberry. Sounds like everyone wins. The iPhone is the same price as the RAZR was when it came out, so even the consumer gets far more bang for the buck in both platform, and connectivity.

    Personally, as someone that travels extensively, EDGE is more broadly available, with 3G only in select major cities.

    Let the stock climb - wish it was more because of the Mac and less from iPhone stuff, but I'll take it anyway that I can get it.

  1. Jeronimo2000

    Joined: Dec 1969

    0

    not a bad thing

    Well, hooray for Apple if this is true.

    (and hooray for anybody who can afford to buy some share now while they're hot... wish I had any money)

  1. testudo

    Joined: Dec 1969

    0

    Well

    It seems AT&T IS subsidizing the iPhone after all...

  1. testudo

    Joined: Dec 1969

    0

    price drop

    bullish on AAPL can't understand today's sell-off... false and misleading news can hurt in the short term...

    False and misleading? Who's issuing false and misleading comments? AT&T? Analysts? And what comments are false, let alone misleading?

    for those short term investors...

    please imagine ware AAPL will be in 10 years...


    Yes, because we know there's no such thing as progress, evolution, change, etc. Take any technology company and you can see how so much changes in 10 years. You could've easily said it about MS in 1995 (yet no one wants them now). h***, Palm was nothing but future and growth 10 years ago (if that far back). Now they can barely struggle to survive.

    If you said the same about apple in 1987, would you have predicted the doom, gloom, and near collapse of the company in 10 years? And, 10 years ago, would you have predicted they'd have completely reworked themselves into what they are (OK, YOU don't count, since you have a bias on the subject). Certainly 10 years ago no one was predicting Apple would be best known as a phone and music player company.

    then think how foolish you'll feel in the future if you didn't hold on to a few shares...

    Damn, the same way I feel on holding onto my PSINet? Or my Global Crossing?

    Great for AAPLholders.... ... not so much for my wallet :p

    Not sure how this affects your wallet. Unless you actually were selling your stock today, all this does is make a slight dip in your net worth and that's it. Since the gains and losses of stocks is all on 'paper' until they are traded, it affects you not one iota.

  1. UberFu

    Joined: Dec 1969

    0

    ...

    Interesting !

  1. ZinkDifferent

    Joined: Dec 1969

    0

    Ah, testudo...

    ...the usual, talking out of his a**.

    the smart investors sold yesterday, and will wait until after the earnings call, when the stock will dip some more, to pick up stock for the amount they just sold yesterday -- thereby picking up a few more shares, for the same amount of money.

    ...all the while testudo sits on his sofa, having, essentially, nothing.

  1. testudo

    Joined: Dec 1969

    0

    Re: ah testudo

    ...the usual, talking out of his a**.

    the smart investors sold yesterday, and will wait until after the earnings call, when the stock will dip some more, to pick up stock for the amount they just sold yesterday -- thereby picking up a few more shares, for the same amount of money.

    ...all the while testudo sits on his sofa, having, essentially, nothing.



    Smart investors? Are you kidding! Don't you read these comments! ANYONE WHO SELLS APPLE STOCK IS AN IDIOT! That's how I read it.

  1. climacs

    Joined: Dec 1969

    0

    another thread polluted

    by testudo.

    please... just... stop.

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