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Do we know the impact of the new iPhone pricing models where people pay Apple a monthly installment? Is it just a wash? At first glance, it seemed like this was

by pbreit 11y ago

Do we know the impact of the new iPhone pricing models where people pay Apple a monthly installment? Is it just a wash? At first glance, it seemed like this was increasing Apple's take.

JoshGlazebrook 11y ago
It doesn't change the amount of money Apple gets. The carriers still were buying the phones from them at wholesale or full price, and just subsidizing the upfront cost of the phone by selling it at $199 to the customer but baking in the rest of the phone into their monthly voice/text/data plans.
- stanmancan 11y ago
  I don't think OP is referring to getting the phone from your carrier, they're referring to the 'iPhone Upgrade Program' where you pay Apple a monthly installment and get a new phone every year: http://www.apple.com/shop/iphone/iphone-upgrade-program http://www.apple.com/shop/iphone/iphone-upgrade-program
  - ewang1 11y ago
    It's financed through Citizen Bank, so odds are Apple is being paid in full (or at least most of it) up front.
    - pbreit 11y ago
      Whichever it is, wondering if it's improved (or not) economics to Apple.