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story category AT&T's Bill From Apple Comes Due: $900 Million
Investors become nervous nancies over steep up front price tag...
12:30PM Thursday Oct 23 2008 by Karl Bode
tags: business · wireless · hardware
Tipped by wifi4milez See Profile
AT&T's latest deal with Apple gave AT&T iPhone exclusivity until 2010, though it also involved AT&T paying Apple about $300-$450 for each HSDPA-enabled iPhone sold. AT&T hopes to obviously recoup those costs by locking customers into long term contracts (or charging them an arm and a leg to buy an iPhone out of plan). With AT&T Selling 2.4 million iPhones last quarter the $900 million bill to Apple came due, surprising even AT&T while making AT&T investors (the same ones who blush at talk of fiber to the home investment) nervous:
"It's not an environment where people are going to appreciate longer-term investment strategy," said Baltimore- based King, who advises investors to buy AT&T shares and doesn't own any. Profit estimate numbers are coming down. Our numbers are going to be coming down somewhat dramatically."AT&T fell $1.95 to $23.78 at 4 p.m. in New York Stock Exchange composite trading. The shares have declined 43 percent this year.
Obviously AT&T's taking the long view on this one, and will reap the rewards of several years' worth of iPhone customers paying almost $100 per more, per month. The lure of the iPhone is also migrating customers from other carriers to AT&T, though Verizon is already rumored to be working on bringing the iPhone to the Verizon network.

Related:
  1. Sprint Announces Dual Mode 3G/WiMax Modem
  2. Gizmodo Tests Nation's 3G Networks
  3. HTC G2 Coming Next Spring?
  4. Vermont Finally Gets The iPhone
  5. Startup Offers Smart Phone Rentals
  6. iPhone 3G Unlocked
  7. AT&T's 2G Customers See A Downgrade
  8. AT&T Looking For Femtocell Testers
Forums » AT&T's Bill From Apple Comes Due: $900 Million
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Post a:

S_engineer

join:2007-05-16
Chicago, IL

Better pay the Death Star......

Or they'll send Moose and Rocco out to talk to you!

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Re: Better pay the Death Star......

"Better pay the Death Star"

I think your title is misworded. The Death Star is the one having to pay, not the other way around.

S_engineer

join:2007-05-16
Chicago, IL

Re: Better pay the Death Star......

Your right...i posted by reading the headline...and to top it off I read it wrong. Lesson learned!

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

No brainer

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.

ptrowski
Got Helix?
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Re: No brainer

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Right now Sprint probably wishes they had a viable future.
--
"So, Lone Star, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Re: No brainer

But they have XOHM lol

They're doomed.

BillRoland
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said by ptrowski See Profile :

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Right now Sprint probably wishes they had a viable future.
LOL definitely the quote of the year on DSLR! Great stuff!
--
"Don't steal. The government hates competition."

swintec
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said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Sprint has the Instinct which to me....blows the Iphone out of the water, they also have good prices, and seem to be at the front for innovation (Airave and Xohm come to mind).
--
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ptrowski
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Re: No brainer

said by swintec See Profile :

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Sprint has the Instinct which to me....blows the Iphone out of the water, they also have good prices, and seem to be at the front for innovation (Airave and Xohm come to mind).
The thing is I don't know a single person that even uses them anymore.

Homer J
Mmmm, Free Goo

join:2000-10-05
Springfield

Re: No brainer

I've been with Sprint for over 9 years. Never been happier. Reasonably priced service, nice selection of phones. I just got a Mogul, it's a great phone. Tried my friends Iphone. I feel sorry for him that he fell for the hype and is paying so much more for a piece of crap like that. Apple products in general may look sleek, but are poorly designed and not real user friendly. Just wish users would admit it.

ptrowski
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Re: No brainer

said by Homer J See Profile :

I've been with Sprint for over 9 years. Never been happier. Reasonably priced service, nice selection of phones. I just got a Mogul, it's a great phone. Tried my friends Iphone. I feel sorry for him that he fell for the hype and is paying so much more for a piece of crap like that. Apple products in general may look sleek, but are poorly designed and not real user friendly. Just wish users would admit it.
Besides my Touch, the iPhone is the only Apple product I have purchased. It's a good phone, so I have nothing to admit as you say.
--
"So, Lone Star, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org

adisor19

join:2004-10-11
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said by swintec See Profile :

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Sprint has the Instinct which to me....blows the Iphone out of the water, they also have good prices, and seem to be at the front for innovation (Airave and Xohm come to mind).
LOL Ya gotta love that "full internet" experience on the instinct. Face it : The Instinct is a POS.

Adi
brad

join:2007-09-06
Etobicoke, ON

Re: No brainer

said by adisor19 See Profile :

Face it : The Instinct is a POS.
Face it : The iPhone is a POS.
cmaenginsb
Premium,MVM
join:2001-03-19
Palmdale, CA

said by swintec See Profile :

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Sprint has the Instinct which to me....blows the Iphone out of the water, they also have good prices, and seem to be at the front for innovation (Airave and Xohm come to mind).
Sprint has always been at the front for technology and innovation, their DSL/Voip offering, original fixed wireless systems etc. They never seem to be able to capitalize on it though.
Ahrenl

join:2004-10-26
North Andover, MA

Re: No brainer

That's because their phone's suck, and they won't let you use a non-sprint branded phone on their network.
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: No brainer

and Alltel does? VZW does?

supergirl

join:2007-03-20
Pensacola, FL
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Re: No brainer

Ever heard of "unlocked" phones. You can call the carriers and see if they are on their list. I know people that use the iPhone on TMobile.
--
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hottboiinnc
ME

join:2003-10-15
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·buckeye cable

Re: No brainer

yah i know what an unlocked phone is. But most if not all carriers will not give you a list of what phones that work on their network that are NOT theirs. Why should they? they get you to buy their phone with their logo on it and advertise them. They don't want you have a VZW phone on Sprint for a reason.
Ahrenl

join:2004-10-26
North Andover, MA

Re: No brainer

Sprint just doesn't allow it. Verizon and TMo and ATT all do. I have no idea about Alltel.

J
California Dreamin'

join:2002-02-08
California

edit:
October 23rd, @03:57PM

Deleted

J
California Dreamin'

join:2002-02-08
California

said by swintec See Profile :

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
Sprint has the Instinct which to me....blows the Iphone out of the water, they also have good prices, and seem to be at the front for innovation (Airave and Xohm come to mind).
Sorry but the instinct does not even come close to the iphone!! We could start with true HTML on the iphone and go on and on. I had the iphone for a year and half and just signed up with Sprint because spending $200+ a month on two iphones wasn't worth it it. We looked at the instinct(so called iphone killer) and it wasn't even in the same class. We currently have a blackberry curve and a treo 800w and are enjoying the low prices sprint offers.
--
"You don't love a woman because she is beautiful, but she is beautiful because you love her."
jtorre69

join:2005-12-26
Hollywood, FL
sprint extinct!
Strogonowski

join:2007-08-15
Lake Zurich, IL


edit:
October 23rd, @06:30PM

said by ninjatutle See Profile :

If they didn't do it, some other company would have scooped up the iPhone and would be sitting on top right now. I bet Sprint wished they had the iPhone.
They had a chance. Sprint was first provider that Steve approached but they were busy with Nextel.

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Re: No brainer

Well, the captain of the sinking S.S. Sprint should try to regain some of his honor and go out by way of the samurai code. Seppuku! Look at all the jobs that will be lost once the ship runs aground shortly.

banditws6
Shrinking Time and Distance

join:2001-08-18
Naples, FL
·Comcast

I Left Verizon for the iPhone

And I'm not sorry -- I find the iPhone to be the perfect device for my needs -- but I really did like Verizon's network coverage and quality better.

If Verizon starts offering the iPhone after AT&T's exclusivity expires, I may switch back -- although naturally I'll have to get a CDMA version of the device.

Verizon's billing (particularly in regards to the customer account management area on the Web) and support was vastly inferior to what I now have with AT&T, though, in my admittedly limited experience.
--
"I'll follow the law until it's just stupid." -Ted Nugent
thevorpal

join:2007-11-16
Endicott, NY

Re: I Left Verizon for the iPhone

said by banditws6 See Profile :

And I'm not sorry -- I find the iPhone to be the perfect device for my needs -- but I really did like Verizon's network coverage and quality better.

If Verizon starts offering the iPhone after AT&T's exclusivity expires, I may switch back -- although naturally I'll have to get a CDMA version of the device.

Verizon's billing (particularly in regards to the customer account management area on the Web) and support was vastly inferior to what I now have with AT&T, though, in my admittedly limited experience.
I'm not tied to the iphone, just the 'open' features. It simply is the better phone for me on the market by a wide margin.

I switched from Verizon, I felt that they gave me the better coverage, but their prices are pretty terrible (company as a whole). I'd switch back if they had something similar to the iphone,or the iphone itself.

In general, cell phone companies rank right up their with meter maids in my ranking of dislike.

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
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Re: I Left Verizon for the iPhone

said by thevorpal See Profile :

I'm not tied to the iphone, just the 'open' features.
I am not sure what you mean, but unless you have a "jailbroken" iphone its one of the most locked down devices in history. They give you the illusion that its open because you can buy apps, but thats really just a (very good!) marketing ploy. I must be honest however, all future phones will need to have a marketplace of sorts now that its been introduced. If apple allowed any apps (as the Google phone apparently will) then I would agree that the iphone is 'open', but they dont.
--
If history teaches us anything, it teaches that simple-minded appeasement or wishful thinking about our adversaries is folly.
-Ronald Reagan-
kwayzcat

join:2002-10-22
Chicago, IL

correction?

Don't you mean AT&T's bill FROM Apple? AT&T is paying full price for every iphone. Apple is making a killing announcing record profit margins yesterday. Now people are spending less and cutting back on their phone plans. AT&T is in for a world of hurt for the next year which is why their stock took a beating yesterday.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Re: correction?

No. AT&T has a revenue sharing agreement where they have to pay Apply per iPhone.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
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AT&T is making out ok on the iPhone

Lets see:
AT&T 'pays' $300-450/phone
Customer pays $199-$299/phone
Customer purchases 2year contract - $30/month JUST for data (required) + voice plan (lets say $40/month):
--
Customer Total: Low end: $199 + 720 + 960 = $1879

All other data devices do NOT require a data contract.
Eg. If I purchased a device and didn't find that I needed data, I'd disable the feature (or say I swapped to another phone). iPhone requires 2 year data contract!
powerspec88

join:2007-03-11
Harrisonville, MO
·Sprint Mobile Broa..
·AT&T Yahoo

Re: AT&T is making out ok on the iPhone

said by en102 See Profile :

All other data devices do NOT require a data contract.
Eg. If I purchased a device and didn't find that I needed data, I'd disable the feature (or say I swapped to another phone). iPhone requires 2 year data contract!
If i did not have a data plan with my iPhone, it would be worthless in my eyes.

GlobalMind
Domino Dude, POWER Systems Guy
Premium
join:2001-10-29
Hollywood, FL

Re: AT&T is making out ok on the iPhone

said by powerspec88 See Profile :

said by en102 See Profile :

All other data devices do NOT require a data contract.
Eg. If I purchased a device and didn't find that I needed data, I'd disable the feature (or say I swapped to another phone). iPhone requires 2 year data contract!
If i did not have a data plan with my iPhone, it would be worthless in my eyes.
Exactly. Even with wifi it'd still be pretty well useless based on what it can do.

One reason they knew most folks wouldn't give a rip about the contract & price if they really want one.
--
TheGlobalMind.com / Speed costs money. How fast do you want to go? / Trust the instinct to the end, though you can render no reason. - Ralph Waldo Emerson / Free market capitalism is the best path to prosperity.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: AT&T is making out ok on the iPhone

I technically agree... however, if you got 'bored' of the iPhone, or decided to go back to a plain old GSM phone, you would still be required to pay the $30/month for the 3G data plan that's required.
--
Canada = Hollywood North

ReflectionsofYou

@sigmanet.com


The problem is the carriers are going to be fighting an uphill battle the next several quarters as they see an increase of non paying customers and non paid disconnects due to our poor economy and loss of jobs.

Your figures are based on the assumption that everyone will pay their bills ontime everytime.

mrchris
America the pitiful
Premium
join:2002-10-01
North Babylon, NY

Nothing to worry about

They can handle it

N3OGH
Will it all be Obama's fault now?
Premium
join:2003-11-11
Philly burbs
·Verizon Online DSL

Pay up, sucker...

Steve: "Hey guys, how ya doing?"

AT&T: "we're OK, how 'bout you?"

Steve: "Oh, I'm just great, lovin' life!"

AT&T: "OK, I guess we should get this done now."

Scribble scribble, write write....

Steve: "No.no.no, there's one "B" in "Jobs", boys..."
--
Petty people are disproportionably corrupted by petty power…
Forums » AT&T's Bill From Apple Comes Due: $900 Million


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