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AT&T's iPhone subsidy: will it break the bank?
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Analysts are buzzing about how much they think AT&T is paying for its subsidy on the Apple iPhone 3G. Oppenheimer analyst Yair Reimer says the operator is paying $325 per unit and another $100 per subscriber that signs up for service at Apple stores. Piper Jaffray analyst Gene Munster estimates that Apple will receive an average of $466 per iPhone and Bernstein Research's Toni Sacconaghi says he thinks carriers will pay between $350 to $700 to Apple for each 3G iPhone.
AT&T and Apple are remaining quiet on the specific details but AT&T has said that its deal with Apple would impact the company's bottom line in the short term. However, the carrier expects to reap benefits in the long-term by attracting more data-heavy users.
For more:
- read this InformationWeek article
Related stories:
AT&T will subsidize 3G iPhone
Photos: 3G iPhone Launched
Comments
Posted by Justin Hammond | June 23, 2008 - 1:47pm
Without any research, I estimate between $1 and $1,000... can Toni Sacconaghi be any more vague?
Posted by Anonymous | July 4, 2008 - 8:48am
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ITS TOO LATE..........................
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Now that all the Steve Job's groupies have paid thru the nose for the iPhone "cool" factor..... AT&T/Apple has decided to drop the price. Talk about adding insult to the (financial) injury.....
But ITS TOO LATE...... At these prices and in this economy, iPhone is not "hot" (or "cool") anymore.......
Here is the comparison between Sprint Instinct and the "CHEAPER" 3G iPhone.
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SPRINT INSTINCT
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Price: $29.99
$129.99 with a two-year service contract and a $100 mail-in rebate. U.S. launch date: June 20
Creator: Samsung Mobile
Wireless carrier: Sprint Nextel Corp.
Download speed: As much as 3.1 Mbps
Size: 4.57 inches tall, 2.17 inches wide, 0.49 inches thick
Capacity: 2 GB, expandable to 8 GB
Features: Touch screen, Web browsing, e-mail access, multitasking capabilities, 2.0-megapixel camera with camcorder, multimedia capabilities, visual voice mail, music store, GPS-enabled audio and visual turn-by-turn driving directions, advanced stereo Bluetooth, live and on-demand TV programming, voice activation, commercial-free radio
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The "CHEAPER" iPhone 3G
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Price: $199 with a two-year service contract
U.S. launch date: July 11
Creator: Apple Inc.
Wireless carrier: AT&T Inc.
Download speed: As much as 1.4 Mbps on AT&T 3G mobile broadband networkSize: 4.5 inches tall, 2.4 inches wide, 0.48 inches thick
Capacity: 8 GB; 16 GB version available for $299
Features: Touch screen, Web browsing, e-mail access, multitasking capabilities, 2.0-megapixel camera, multimedia capabilities, visual voice mail, music store, GPS technology and real-time mapping, Wi-Fi support, Microsoft Exchange ActiveSync, wireless App Store to download applications, YouTube
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BOTTOMLINE
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"Cheaper" iPhone = $199 with slower (1.4Mbps) downloads and less features. (no realtime TV, BlueTooth)
"Regular" Instinct = $29.99 (w/ $100 rebate) with faster (3.1 Mbps) downloads and more features than iPhone. (realtime TV, Bluetooth and more)
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