Behold the power of iPhone: AT&T to pay Apple for new customers, cut of monthly service charge

Apple Store“The coming release of Apple’s iPhone will give the tech titan more than a toe in the mobile phone market, according to one observer,” Scott Moritz reports for TheStreet.com.

“The hotly anticipated iPod-inspired cell phone also will give Apple a nice handle on a partner’s pocketbook, a Wall Street analyst said Tuesday,” Moritz reports.

“The iPhone, due out from Apple in June, commands enough potential sales leverage that AT&T is willing to share some of the proceeds, says American Technology Research analyst Shaw Wu, in a note Tuesday,” Moritz reports. “According to the two-pronged revenue sharing arrangement, AT&T will pay Apple a commission for each new customer and a cut of the customer’s monthly payment, writes Wu.”

“‘We believe this recurring revenue stream is high quality and adds an additional degree of stability and predictability to Apple’s financial results,’ writes Wu, who increased his share price target to $145 from $118 based on the juiciness of this deal,” Moritz reports.

Full article here.
iPhone, bitch!

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54 Comments

  1. Wow….but what about buying a phone from another person? without a contract? I am sure this means there will be a special iPhone data and voice plan totally different then the regular ones….hopefully not more expensive.

  2. Yeah, the iPhone will be awesome, but all I need to do is make and receive a phone call.
    For other professionals that have the need for the features of the iPhone and folks with the money to burn (re: rich kids and yuppies) the iPhone is ideal.

  3. iPhone: iMustHave! Jesus-tap-dancing-Christ-on-a-pogo-stick! F^ck Leopard, give daddy that damn iPhone now!

    MDN MW: “put” – as in – Take this god foresakin’ TREO out-my hand now and put an iPhone in its place, beyotch!

  4. 10 bucks a month x 12 months x 10 million iPhones = $1.2 B

    Did I calculate that right? ATT are gonna give Apple at least a billion bucks a year for the iPhone,

    Add on:

    $500 x 10 million = $5 B.

    So if Apple sell 10 million iPhones a year they could be getting at least 6B in revenues.

    I wouldn’t be surprised if the iPhones sell at cost for the first year. After that component costs will go down and Apple will be printing money!!

    Lucky I’ve got shares ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    MW Makes as in loads of money!

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