[X4U] New iPhone

Matt Gregory mattgregory33 at gmail.com
Tue Jun 10 04:30:15 PDT 2008

This is definitely a standard subsidized phone deal ...


"The new agreement between Apple and AT&T eliminates the revenue- 
sharing model under which AT&T shared a portion of monthly service  
revenue with Apple. Under the revised agreement, which is consistent  
with traditional equipment manufacturer-carrier arrangements, there is  
no revenue sharing and both iPhone 3G models will be offered at  
attractive prices to broaden the market potential and accelerate  
subscriber volumes."

"In the near term, AT&T anticipates that the new agreement will likely  
result in some pressure on margins and earnings, reflecting the costs  
of subsidized device pricing, which, in turn, is expected to drive  
increased subscriber volumes."

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