Apple getting incredibly large kickback From AT&T for each new iPhone contract - Apple the Bounty Hunter
Posted by Will on Tuesday, July 24th, 2007 at 7:36 pm under Rumors, Cingular/AT&T, iPhone, Apple
Apple is really raking the cash these days. Following today’s reports from AT&T about shorter-than-expected iPhone activations (causing panty-wearing investors to jump ship and offload their Apple stock), we’re hearing rumors that Apple’s kickback from AT&T don’t stop at the $3 per month revenue share.
According to TheStreet.com, sources close to the company are claiming that Apple is getting somewhere in the neighborhood of $150-$200 per new contract - quite a difference from our earlier speculation that Apple made $11 for every new iPhone contract. With Apple refusing to allow AT&T to give any new-contract rebate or subsidy for new iPhone users, it makes sense that the wireless carrier pony up a bounty for each new contract (or did Apple demand such a deal?). Third party dealers make even more when they sign up new contracts with data plans, so a $200 bounty doesn’t seem like such a bad deal for Apple.
If these reports turn out to be true, Apple will be beating the hell out of Wall Street’s earnings estimates for the company - Jobs will be making money faster than anyone ever thought possible.
Hopefully, we’ll see Apple’s stock rebound a bit in tomorrow’s trading.
[Via: The Street]
