Rumor: AT&T subsidizing $325 of every iPhone 3G
According to Oppenheimer analyst Yair Reiner, AT&T is subsidizing the iPhone 3G at $325 each. That amount should make up for the revenue sharing that was eliminated in a revised agreement between Apple and AT&T.
Reiner says AT&T is willing to pay higher than the typical smartphone subsidy of $200 because of its “faith in the iPhone’s ability to attract new subs and increase ARPU [average revenue per user].” He also says that AT&T is paying Apple an additional $100 for each subscriber it signs up in the Apple Store. We’re not sure of Reiner’s source, but if true and other carriers are paying similar subsidies, Apple is definitely sitting pretty. With analysts estimating that around 35 million iPhones will be sold in the next 18 months—Reiner thinks it could be even higher—that could add upwards of $20 billion to Apple’s coffers.
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