“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!
Related articles:
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This is gonna be like watching plate tectonics in time-lapse. ^_^
-c
gotta love those recurring revenue streams.
Holy Sh**! If this is true, Apple has redifined the US cell phone business!
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.
Wow. Go ahead and delay Leopard… daddy wants a stock surge!
earlier today on MDN,, ATT is talking about rebates, wow they want that iPhone
iPhone made me piddle.
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.
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!
From $118 to $145 a share? The Wow starts now.
Mark,
You need an iPhone too.
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
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MW Makes as in loads of money!
When record companies wanted a cut of the iPod profits, we all cried foul. Why is this any different? Why is Apple getting a cut from AT&T?
iPhone… zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
What sad lives you lead. All this for some plastic and bits of metal. Would that the world will be a better place for this device.
> When record companies wanted a cut of the iPod profits, we all cried foul. Why is this any different?
Because iPod is a device, not a service. There is no recurring revenue from a device. It would be like paying a cut of my new TV set price to Comcast or Viacom. AT&T is providing a service that depends on the customer buying an iPhone. AT&T is providing an exclusive service that no competitor can provide because of Apple and iPhone.
And the premise from the record company to justify such an “iPod tax” was pretty annoying too… Because some iPod owners steal music, we want to assume that all iPod owners steal music and penalize everyone who buys an iPod.
Dale, wake up– it’s time for your sleeping pill. And Thorazine.
And in tomorrow’s news, iPhones get $200 price cut…
-c
“AT&T will pay Apple a commission for each new customer and a cut of the customer’s monthly payment, writes Wu.”
O.K. I have been on back to back red-eye flights; maybe I’m missing something. But isn’t this the traditional cell carrier agent agreement? Years ago, I had a friend in the cell phone business, and I’m pretty sure this is SOP. Why is this “news”?
@Mark
An iPhone is overkill for someone who only needs to make calls, just as a Mac is overkill for someone who only needs to read the paper.
What is your point?
Because Apple is bringing customers and new revenue (re-occuring revenue; probably pretty expensive data plans) to AT&T/Cingular. I would never be considering either a switch to AT&T or even a real expensive plan if it wasn’t for the iPhone. But, I’m planning on max’ing this thing out. It’s going to be so powerful and easy to use.
> Dbl Standard
Well, for one, it doesn’t sound like Apple asked for the kick-back. It sounds like AT&T is willing to help the customer and their new hardware partner, Apple, at the same time. I don’t recall the record companies ever wanting to do anything nice for the consumer. Actually it seems they are doing everything in the world to alienate them.
Record Company: Wants everything, without doing anything. Because of Apple’s success.
AT&T: Wants to help the consumer and Apple, because of the perceived success that’s about to happen.
How can you compare the two?
Wowzies … I’m soooo glad I now have 1250 shares of this stock. It is without a doubt the next Qualcomm.
BTW, hey ChrissyOne: Sometime ya wanna . . . ya know . . . get together?
I will gladly pay full price for two iPhones, assuming a reasonable plan exists.
My wife uses less than 100 minutes per month, sometimes less than 50, and I doubt that she will use mobile net or email much, if any at all. I will buy her an iPhone anyway though, because that is just the way that it is.
I use a couple thousand minutes, and I now have a more expensive plan than she, which I do not mind paying for.
In the case of the iPhone plans, there needs to be a low cost plan for her, or possibly a shared plan to be combined between us.
@ ChrissyTwo
I work alone, bitch.
-c
MW: ‘district’ (of euphoria)