> Apple sells their phones directly, AT&T sells Apple phones directly, and resellers like Best Buy or Radio Shack sell Apple phones, and they're all doing prett

> Apple sells their phones directly, AT&T sells Apple phones directly, and resellers like Best Buy or Radio Shack sell Apple phones, and they're all doing pretty well economically. The trick is that they are actually three different business models. Apple makes money on the phones. AT&T makes money on the phone contract. Best Buy or Radio Shack make money on the protection plans and accessories.