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How does ATT get their subsidy then? Apple pays them a cut of the retail price of the iPhone?
by jevinskie 15y ago
How does ATT get their subsidy then? Apple pays them a cut of the retail price of the iPhone?
- bonzoesc 15y agoAT&T, Verizon, and Sprint pay Apple an undisclosed sum of money for each carrier-locked and two-year-contracted iPhone sold.
- jonknee 15y agoIt's AT&T's subsidy. They pay retail (or very close to it) for the phones. They a $199 iPhone, but pay $649 for it. Apple books revenues for sales over time so they may not get it all up front (they're at least not realizing all the revenue up front), but the sale is worth the $649 value regardless of whether it was sold off contract or not.