Saturday, July 25, 2009

THE AT&T IPHONE SUBSIDY

An article in the Wall Street Journal, AT&T Gets Another iPhone Boost, includes some interesting information about AT&T and the Apple iPhone.

In the most recent quarter AT&T activated 2.4 million iPhone units. Assuming that each of these units is a sale and part of the total subsidy number leads to the following.

AT&T estimated that subsidy payments to Apple for the iPhone were $720 million in the quarter. Some basic math, $720 divided by 2.4 million, reveals that each handset is subsidized approximately $300.

 

How would you analyze this data?

Have you seen similar of different numbers?

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