AT&T subsidizing over $400 USD for each iPhone sale free download

AT&T subsidizing over $400 USD for each iPhone sale

News AT&T subsidizing over $400 USD for each iPhone sale

AT&T subsidizing over $400 USD for each iPhone sale After being unveiled a couple of weeks ago at the very consumer attractive price of $199 USD, the iPhone 3G is set to go on sale next month through Apple and AT&T.

According to new reports, it appears however that AT&T is subsidizing the phone, over $400 USD in some cases, just to be able to reap in the benefits of a 2 year contract including data plans.

Oppenheimer financial analyst Yair Reimer writes that as a general rule of thumb, wireless carriers subsidize the price of smartphones by about $200 USD and make it back from expensive data plans. AT&T it appears though, is losing $325-425 for each unit sold and could be buying each phone from Apple for as much $724 USD for the 16GB model.

Piper Jaffray analyst Gene Munster also wrote a report estimating that Apple will make about $466 USD per iPhone. Bernstein Research’s Toni Sacconaghi, in a separate report says he anticipates Apple is selling each phone at $700 USD.

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