Apple Making $432 Per AT&T iPhone Activation

Michael Johnston · October 30th, 2007, 05:53 PM

It has been rumored for some time that Apple was making money from every AT&T iPhone contract that was signed. The Financial Accounting Standards Board has forced Apple into giving up the goods. Not only does Apple get a cut from each iPhone activation, the sum of money made from AT&T activations is estimated to be more than the retail cost of the phone itself. According to Gene Munster, after doing the math, it is estimated that Apple makes $432 from each iPhone activation.

Apple hasn't given specifics, but they are required to report their revenues. Any earnings anticipated in the future, such as the ones Apple gets from AT&T for iPhone plans, they are reported as "deferred revenues". Because Apple is obligated to report this number, Gene Munster was able to determine the average deferred revenue of each iPhone.
[via Gizmodo]

agent6998 · October 30th, 2007, 08:16 PM #2

I envy Apple's moola. :eek:

October 30th, 2007, 10:29 PM

If apple were to offer a iphone for 880.00 unlocked i would pay it in a heart beat

Picasosz Guest Posts: n/a	I would gladly pay the extra for an unlocked iphone - October 30th, 2007, 10:29 PM #3
Picasosz Guest Posts: n/a	If apple were to offer a iphone for 880.00 unlocked i would pay it in a heart beat

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Michael Johnston This is my fricken site, durrrr Join Date: Apr 2007 Location: Rockford, IL Posts: 2,694 Thanks: 11 Thanked 45 Times in 40 Posts	Apple Making $432 Per AT&T iPhone Activation - October 30th, 2007, 05:53 PM #1
	It has been rumored for some time that Apple was making money from every AT&T iPhone contract that was signed. The Financial Accounting Standards Board has forced Apple into giving up the goods. Not only does Apple get a cut from each iPhone activation, the sum of money made from AT&T activations is estimated to be more than the retail cost of the phone itself. According to Gene Munster, after doing the math, it is estimated that Apple makes $432 from each iPhone activation. Apple hasn't given specifics, but they are required to report their revenues. Any earnings anticipated in the future, such as the ones Apple gets from AT&T for iPhone plans, they are reported as "deferred revenues". Because Apple is obligated to report this number, Gene Munster was able to determine the average deferred revenue of each iPhone. [via Gizmodo] __________________ About my iPhone: iPhone & Color: White 32GB iPhone 3GS iPhone Version: Whatever the latest is because I'm crazy like that. Computer & OS: 15" Unibody MacBook Pro + OS X Leopard 10.5 AIM: iPhoneAlley twitter: MichaelJohnston

agent6998 Rocks the Board Join Date: Aug 2007 Location: Beirut, Lebanon Posts: 194 Thanks: 0 Thanked 3 Times in 3 Posts	October 30th, 2007, 08:16 PM #2
	I envy Apple's moola. :eek: