A financial analyst said that the AT&T is paying its partner, Apple Inc., at least $325in subsidies for each 3G iPhone.

iphone

A report from Yair Reiner of Oppenheimer said that Apple Inc. will end up getting a lot of revenue from the 3G iPhone’s subsidies compared to the revenue that it will have from its revenue-sharing agreement with AT&T. The said agreement was signed before the 3G iPhone was officially launched during Steve Jobs’ keynote last June 9.

Yair Reiner also mentioned that the $325 figure is far greater than the ordinary subsidy worth $200. This is the amount the most distributors or carriers pay so that the




price of the other smartphones may be reduced. Moreover, it is followed by a bounty worth $100 for every new subscriber who signed up for an AT&T service at an Apple store.

3G iPhone’s new pricing scheme was unveiled by AT&T and Apple after Apple’s latest product was officially launched last June 9, 2008 at Apple’s Worldwide Developers Conference. The 8GB model of the 3G iPhone will cost only $199. On the other hand, the 16GB model of the second-generation iPhone will cost $299 each. The price was $200 cheaper compared to the first-generation iPhone. The price was lowered after the AT&T agreed that they can subsidize the gadget’s price.

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