It’s not breaking news that Apple is slashing the cost of it’s iPhone by an average of $200 when it is launched next week. But did you realise that Apple is not loosing out by doing this? Apple has managed to make deals with AT&T so that they will be paid more money for each iPhone sold. No official comment has been made about the financials, but observers believe that Apple are making an extra $100 on each iPhone sold.
Another way Apple is not loosing out is by requiring people to buy a contract when they buy the phone. The original iPhone was purchased with out a contract and when switched on it required you sign up for a plan to activate it. This is where the Jail Break software was used in that it could bypass the activation process basically cutting out the revenue for Apple and AT&T. With having to buy a contract when purchasing the iPhone 2, Apple and AT&T will not be converting everyone to their plans.
An estimated 35 – 45 million iPhones will be sold before 2010 ends which could see Apple realise revenues of $4 Billion.
It appears on the surface that this change benefits Apple, AT&T and the end user, and yet, Apple still walks away smiling.
Via: CNN
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