Restructured iPhone Pricing Isn't Cheaper

Mallinson, Keith
July 2008
Wireless Week;7/1/2008, Vol. 14 Issue 12, p22
Trade Publication
The article examines the high cost of third generation (3G) iPhone from Apple Inc. It is noted that higher monthly service fees and lower manufacturing cost will raise overall profitability per subscriber of the handset. Terms of deal between Apple Inc. and AT&T are said to subsidized customer upfront and additional service revenues will cover the cost. In a paper by In-Stat Inc., it is stated that the initial hardware bill of materials and manufacturing cost of 3G iPhone amounted to $173.


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