Apple and AT&T

[Eric Lewis]

As we already know...Apple wont make any money from new contracts from AT&T for using the iPhone on its network...

So the question is....

Why does Apple care that its iPhones are activated and On AT&T?

they should just sell them and let you activate them at home..since connecting with AT&T does nothing for Apple?

 

[D3lta]

I think that in-store activation should only be done to new customers. If you're already an existing AT&T customer and just buying an iPhone... why force them to activate in store?

 

[phalewhale]

As we already know...Apple wont make any money from new contracts from AT&T for using the iPhone on its network...

So the question is....

Why does Apple care that its iPhones are activated and On AT&T?

they should just sell them and let you activate them at home..since connecting with AT&T does nothing for Apple?

Yes, but Apple have signed an agreement with AT&T, as well as O2 in the UK that gives the carrier sole rights to the iPhone. They have to stick with that until it ends... Whenever that is...

 

[aethelbert]

You do realize that money will still be going to Apple, right? They're just no longer making money on monthly plans. But AT&T is paying them for activations and new customers. They signed an agreement, expect them to defend it.

 

[fishkorp]

Because AT&T is swallowing $200 on the cost of each phone. You don't activate the phone, Apple doesn't get that extra money from AT&T. That's how subsidies work. So instead of revenue sharing, they're subsidizing.

 

[RaceTripper]

iPhones are subsidized at $199 by AT&T. Apple needs to get -- say -- $399 (for example). When you get one at an Apple store for the $199 you pay, Apple gets their remaining $200 from AT&T by you activating it.

If you don't activate it how can Apple claim the subsidy part of the cost back from AT&T?

Edit: I see a similar post to explain just beat mine.