Apple and AT&T

Discussion in 'iPhone' started by Eric Lewis, Jun 10, 2008.

  1. Eric Lewis macrumors 68020

    Eric Lewis

    Feb 4, 2007
    CANADA? eh?
    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?
  2. D3lta macrumors 6502a

    Feb 27, 2008
    Cupertino, California
    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?
  3. phalewhale macrumors 6502a


    Jun 10, 2007
    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...
  4. aethelbert macrumors 601

    Jun 1, 2007
    Chicago, IL, USA
    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.
  5. fishkorp macrumors 68020


    Apr 10, 2006
    Ellicott City, MD
    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.
  6. RaceTripper macrumors 68030

    May 29, 2007
    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.

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