Apple Sliced: Unlocked iPhones Cut Revenue

January 2008
Red Herring;1/29/2008, p7
Trade Publication
This article reveals that over a quarter of people who bought Apple's iPhone have been using them on wireless networks other than AT&T's, the exclusive iPhone carrier in the U.S. market. According to analyst Toni Saccognaghi of Bernstein Research, it is estimated that 1.45 million phones were missing in action at the end of 2007. The higher number of unlocked phones has implication for Apple since it receives a cut of AT&T's iPhone service fees, a revenue that carries a high gross margin and has fueled optimism over its earnings potential.


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