Apple tax results in an $831 iPhone, maybe

Gigacore · Oct 28, 2007

The New York Times's Bits blog says it has some numbers of the size of AT&T's payments to Apple from iPhone users from Gene Munster, an analyst at Piper Jaffray. They are based on AT&T's financial statements of "deferred revenue":

His bottom line is rather shocking: AT&T appears to be paying $18 a month, on average, to Apple for each iPhone activated on its network. That adds up to $432 over a two year contract. In other words, Apple will receive $831 for each iPhone it sells. (It's a little less for iPhones sold in AT&T stores.) He can't tell, of course, what makes up that average. Apple may, for example, receive higher payments for customers new to AT&T or those who buy more expensive monthly plans.
Mr Munster says he was surprised by the numbers. He previously had estimated that Apple received $6.50 a month from AT&T. A carrier will typically subsidize the price of a high-end phone by about $200, he says. With the iPhone, AT&T is spreading the payments out over time, but ultimately putting up twice the typical amount.

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DigitalDude · Oct 28, 2007

and they sold millions and millions....

this makes the N95 seem affordable

azzu · Oct 28, 2007

wat about the unlocked ones ?

Gigacore · Oct 28, 2007

^ They are more expensive

aryayush · Oct 28, 2007

Do you guys have any clue what you are talking about? How is the unlocked iPhone more expensive?

DigitalDude said:
this makes the N95 seem affordable

Why are you, as an end user, concerned with how much money Apple makes from the iPhone? All you need to know is that you can buy it for $399 (if you lived in the U.S.A., that is).

Gigacore · Oct 28, 2007

^ Hmm.....

Guys wont u think $399 is expensive

for a normal indian ?

aryayush · Oct 28, 2007

Well, Rs. 16,000 for an iPhone is definitely not expensive for me and I consider myself a "normal indian".

Though, of course, that won't be the price tag when it comes to India.

Pathik · Oct 28, 2007

Nah.. Considering you get a n95 for about $699..
But wat we shd discuss here are the much better features of the n95..
and even the unlocked iphone costs just $399 if u get a normal iphone shipped here and unlock it urself...

Gigacore · Oct 28, 2007

Pheww.......... almost 60 to 70 % members in this forum can get iPhone easily....

I would like to say some fact regarding iPhone........

1. Only few tech saavy people in india know that there exists a phone from apple known as iPhone!

2. Majority of people in india who are well educated and will deal with tech every day wont know that there exists a Company Called Apple !

3. Few People use to say "Hey get yourself an iPod"... but if u ask them the company that is manufacturing it... they are unable to answer it!

4. If someone says Apple is the Company that manufactures iPod... then they say... O really? i came to know today!

5. And an interesting fact is that people will have enough money to buy any gadgets.... but they dont know to use them! (not only the products from apple)

6. Most of the college students know that there is a product called iPhone and iPods and several others from Apple.. and even they do know its from Apple... but they dont know apple's founder is JOBS!

There is still so many things to say.. anyway...

If Apple really wants to get the world dominance... they have to make some really low cost products which should able to purchase by a normal or a middle class indian or a indian who uses his phone to talk with his mate in front of slippers near few temples..!!

Note: i'm not insulting any apple fans or anything like that... just i want people know few things about apple....

azzu · Oct 28, 2007

to tell actually giga there's noo need of knowing the Job's is the founder blah blah....when ur iphone is repaired then will he cum
i mean to say they dont know it coz they dont need it
if they need it they will learn like IS

no offense dude take it on lighter side

Gigacore · Oct 28, 2007

@ azzu........ If few students or any other tech saavy people wont know some basic infor about apple.... then how can we can that APPLE can gain a huge fame... ?

Apple is desperate to gain FAME

azzu · Oct 28, 2007

^^ y the hell they want fame cant they improve market share without telling that our CEO is JOb's
do he also hav to become like BILLY uncle ? and also apple is lot moore famous in other countries than Asia
All they hav to do is get sum good plan's and roll out cost-efficient products in india that's it

Gigacore · Oct 28, 2007

^ hold ur horses..... ok even it is not important to know about JObs or what so ever...

I agree they have a good competation in market towards others...

What i just want to say is... If they make some good cheap products then people will buy them and APPLE can grow its wealth....

Well i have tons and tons of comments to post... but i dont want to get BANNED here...

azzu · Oct 28, 2007

^^ that's wat ur First post shud be
if apple make cheap products they can hav good Market share in india they already hav rest of world
y wud get one banned for posting good stuff
Xplain me

Gigacore · Oct 28, 2007

^ did i post any good stuff :shock:

I think i was RUDE

aryayush · Oct 28, 2007

Gigacore said:
1. Only few tech saavy people in india know that there exists a phone from apple known as iPhone!

I was quite surprised to know that this is actually not true. A lot of people know about the iPhone in India. In fact, most people know about it. It's been on the front pages of national newspapers in India.

Gigacore said:
2. Majority of people in india who are well educated and will deal with tech every day wont know that there exists a Company Called Apple !

Oh, c'mon! This is utter bullshit. Everyone knows about Apple Inc.

Gigacore said:
3. Few People use to say "Hey get yourself an iPod"... but if u ask them the company that is manufacturing it... they are unable to answer it!

Agreed.

Gigacore said:
4. If someone says Apple is the Company that manufactures iPod... then they say... O really? i came to know today!

Same as the previous point, but yeah - true.

Gigacore said:
5. And an interesting fact is that people will have enough money to buy any gadgets.... but they dont know to use them! (not only the products from apple)

Really? There is absolutely no question that Apple makes the easiest to use products in the industry. iPods sell because of two factors - the killer looks and the click wheel (ease of use personified).

Gigacore said:
6. Most of the college students know that there is a product called iPhone and iPods and several others from Apple.. and even they do know its from Apple... but they dont know apple's founder is JOBS!

Who cares!

Gigacore said:
If Apple really wants to get the world dominance...

They don't.

Gigacore said:
they have to make some really low cost products which should able to purchase by a normal or a middle class indian or a indian who uses his phone to talk with his mate in front of slippers near few temples..!!

They won't. Apple is one of the hottest brands in the world. They won't do anything to jeopardize that. Who cares about poor Indians, seriously! (I'm talking about it from Apple's point of view, not mine.)

Gigacore said:
Note: i'm not insulting any apple fans or anything like that... just i want people know few things about apple....

What you're basically saying is that Apple is not a common household name in India. Well, we all know that. Apple knows that.

The point is, they don't intend to be that either. They just don't care. And regardless of whatever you opine, the fact is that Apple's share prices and market value are constantly increasing and the company is progressively selling more products and making more profits each quarter. They're the fourth most valuable technology company in the world and most valuable computer maker.

I don't know why they are not trading the marketing path you have so efficiently laid out for them but maybe one of the reasons is that whatever they are doing now is taking them in the right direction. Think about it. It's simple stuff, actually.

azzu · Oct 28, 2007

so here's our INTERIOR design student
totally agree with ARYa

Gigacore · Oct 28, 2007

Originally Quoted by Arya:
They won't. Apple is one of the hottest brands in the world. They won't do anything to jeopardize that. Who cares about poor Indians, seriously! (I'm talking about it from Apple's point of view, not mine.)

I Dont agree with this.........

My reply will be RUDE So i've snipped my own reply.. hope u got it!

---- snipped -----

goobimama · Oct 28, 2007

My completely non-techie brother dropped me to the Apple store the other day when I said, "Come in, I'll show you the iPod touch I've been raving about." And he's completely against gadget and such.

"Wow!" was the reply when he did the 'slide to unlock'. He was so amazed, he said I was crazy not to buy it. "17k for this. If I was like you, I would have bought it immediately". Little does he know what the iPhone does...

DigitalDude · Oct 28, 2007

^^^
circumstantial evidence

storage is puny in the touch keeping in mind the awesomeness of watching videos on it!!! I will atleast stick to the ipod classic when compared to the Touch..... But Zune 2 is gonna pwn anyway

whah so much discussion...... there are many die-hard apple fans here...
and I thought no one can beat Engadget in this

Apple tax results in an $831 iPhone, maybe

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