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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 upfro

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 10y 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 10y 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 10y ago
    Whichever it is, wondering if it's improved (or not) economics to Apple.