looksvivek
31st October 2007, 19:08
Why Unlocked iPhones Worry Apple?
Recently, Apple Computer re-hashed rules applying to the purchase of its iPhone. No longer is cash acceptable (only credit/debit cards), and each person can buy only up to two iPhones.
Apple explained that its move is influenced by the ever increasing number of unlocked iPhones across the globe -- 250,000 (at last count).
To many, it is surprising that Apple should be this worried over unlocked iPhones, when they should be more of a liability for AT&T.
The newest speculation on the subject centers around what AT&T might be paying Apple for each activated iPhone on its network.
While Apple has remained typically tight-lipped about this, it's thanks entirely to the Financial Accounting Standards Board, which makes rules for how companies in the US should keep their accounts, that the company has been forced to reveal its latest financial statement.
Meanwhile, an analyst with Piper Jaffray, Gene Munster, has sneaked a peek into these figures, done the math, and concluded that AT&T appears to be paying around $18 per month, on an average, to Apple -- for each iPhone activated on its network.
Which adds-up to a good $432 over the two-year network contract. And, add to that the cost of an iPhone - $399 - and you get the picture -- Apple makes nearly $831 for each iPhone it sells.
This, if at all, might explain why Apple is losing valuable dollars, and sleep, over the 250,000-odd unlocked iPhones that are alive and kicking on all kinds of networks other than good old AT&T.
Source:
[Only registered and activated users can see links]
Recently, Apple Computer re-hashed rules applying to the purchase of its iPhone. No longer is cash acceptable (only credit/debit cards), and each person can buy only up to two iPhones.
Apple explained that its move is influenced by the ever increasing number of unlocked iPhones across the globe -- 250,000 (at last count).
To many, it is surprising that Apple should be this worried over unlocked iPhones, when they should be more of a liability for AT&T.
The newest speculation on the subject centers around what AT&T might be paying Apple for each activated iPhone on its network.
While Apple has remained typically tight-lipped about this, it's thanks entirely to the Financial Accounting Standards Board, which makes rules for how companies in the US should keep their accounts, that the company has been forced to reveal its latest financial statement.
Meanwhile, an analyst with Piper Jaffray, Gene Munster, has sneaked a peek into these figures, done the math, and concluded that AT&T appears to be paying around $18 per month, on an average, to Apple -- for each iPhone activated on its network.
Which adds-up to a good $432 over the two-year network contract. And, add to that the cost of an iPhone - $399 - and you get the picture -- Apple makes nearly $831 for each iPhone it sells.
This, if at all, might explain why Apple is losing valuable dollars, and sleep, over the 250,000-odd unlocked iPhones that are alive and kicking on all kinds of networks other than good old AT&T.
Source:
[Only registered and activated users can see links]