Apple to AT&T: Show Me the Money


AT&T may be subsidizing up to $425 of the cost of each new iPhone it activates for service when the 2.0 3G models launch next month, Barron’s reports.

According to Oppenheimer analyst Yair Reiner, AT&T will cover an additional $125 premium over the carrier’s typical $200 smartphone subsidy because the company thinks the iPhone will increase subscribers and average revenue per user. Apple will receive an additional $100 bounty for every new AT&T customer who signs for service at an Apple Store.

The early book on the new phone is very bullish, with Reiner calling for 15 million units to be sold in 2008 and another 33 million in 2009.

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Lonnie Lazar

Lonnie Lazar is a writer-musician-web designer-attorney. He writes about Apple for Cult of Mac and Mac|Life, and about VoIP and telecommunications for Voxilla. Follow Lonnie on Twitter @LonnieLazar, join the Cult of Mac on Facebook, and find Lonnie's photos on Flickr.

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