Apple makes $831 per American iPhone

AT&T figures revealed

Apple makes $831 per American iPhone . Phones, Mobile phone industry, Apple, AT&T, iPhone, Rumours, Biz 0

29 October 2007 7:18 GMT / By Amy-Mae Elliott

Apple has always been tight-lipped about how much money it receives from AT&T per iPhone activation, but the company's most recent financial results reveal some interesting figures.

The Financial Accounting Standards Board (who make rules for how companies keep their books in the States) have made Apple provide more information on the agreement, due to a rule about future, or "deferred revenue".

Gene Munster, a Piper Jaffray analyst has looked at these newly unveiled figures and worked out that AT&T appears to be paying $18 a month, on average, to Apple for each iPhone activated on its network.

Over the 2-year contract that AT&T customers must sign up to in order to be graced with an iPhone, that adds up to $432.

Which means, if you add that to the $399 purchase price for the device, Apple will receive $831 for each iPhone it sells.

Muster says that although agreements with European carriers have yet to be revealed, he thinks the payments will be at least as much as from AT&T.
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