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News
Details of Apple - AT&T Deal Revealed
Monday, July 23rd, 2007 at 4:00 PM - by John Martellaro
Previously, the financial arrangements between AT&T and Apple have been kept under wraps. Recently, however, some of the details have been revealed and the money flow to Apple is very good indeed, according to The Street on Monday.
"People close to the companies tell TheStreet.com that AT&T is paying Apple a bounty of between US$150 and $200 per phone -- plus $9 a month per phone over the life of the typical two-year customer contract," Scott Moritz reported.
The upshot is that there could be unexpected windfall for Apple. "This is unheard of," said one money manager who is long Apple. "No one has this plugged this into their models." Roger Entner from IAG research agreed: "It’s a pretty sweet deal for Apple, and not all that bad for AT&T."
Scott Moritz concluded, "Wall Street knew Apple was getting a good deal, but it didn’t know just how good it was."
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