Analyst: Apple gets a cut of AT&T iPhone revenue

Apple's not just getting revenue from iPhone sales, it's also receiving a portion of the monthly fees from AT&T's iPhone data plans, according to a financial analyst.

Gene Munster, an analyst with Piper Jaffray, issued a report Thursday in which he lays out his belief that Apple has a monthly revenue-sharing deal with AT&T. The report estimates that Apple is receiving $3 a month from AT&T for each iPhone user, and an additional $8 a month for new subscribers to AT&T's network lured by the iPhone.

AT&T has certainly rustled up some new business as a result of its exclusive deal with Apple. A survey conducted by Piper in the weeks after the iPhone's introduction found that 52 percent of iPhone buyers were new customers to AT&T. The wireless industry loves new customers that it can lock in for two years of service, so AT&T would probably be willing to kick Apple a portion of the $60 or more that each iPhone user spends a month with AT&T, Munster said.

The number of new subscribers will drop over time, Piper Jaffray believes, but AT&T will likely continue the revenue sharing agreement as newer iPhones are introduced. Munster cautioned that Piper is not aware of the specific details of any agreement between the two companies, but that it's estimating these numbers based on the fact that AT&T hasn't lowered the price of the iPhone through subsidies, like most other carriers do with new, expensive phones.

[john55440]

"belief" + "estimates" = pure speculation

How about some actual facts?

[Toulinwoek]

I Was Thinking The Same Thing

I could just as easily speculate that some of that money is going to a secret society, the task of which is to find a mate for Shamu!

[Thomas, David]

Very True

I'm a little amazed that at the end of the blog, it is noted that the
person "reporting" is actually
speculating.

Isn't that the same thing as "making it
up?".

[Vegaman_Dan]

Well, it is a blog

It's not a news story or article. It's a blog, or one person's thoughts. There doesn't have to be any facts or evidence for the person to give their opinion.

[Tom Krazit]

Sure, but it's informed speculation

Look, Apple barely discloses anything as fact. They're not going to discuss any revenue-sharing arrangement with AT&T. Very few companies would.

Gene Munster is a respected Apple financial analyst who is often in a position to know things that the general public does not. Look up his track record, and evaluate for yourself whether his words hold water.

I've followed him for a while, and he's generally on the mark, which is why I chose to pass along the information in his report to you all. He's not just some guy throwing around a few numbers.

[oxtail01]

Just pulling numbers out of his a...hole

No vendor will lower the price when the product is a hot seller. Actually, it's an easy speculation to make, given that with almost every company, you get a "free" phone with rebates when you sign up. The carrier pays the phone maker out of the new subscriber's revenue. In the case of the Iphone, Apple gets full retail price, so I wouldn't expect ATT to give much more, if anything.

[dlowe402]

W'GASA

So what if apple takes a cut. Bully for them if they got a sweet deal.
I spoke with the guys at the AT&T store and they said they have
never had anybody standing in line for what they had to sell. It's
just like when a major sports team signs on some ****** athlete
for millions of dollars. They're gonna make money any way you
split it so if Apple is getting a cut, good for them. You didn't see
anybody standing in line for the razor now did you?