Like Mark said, its definitely more about profit. However, somebody should be trying to figure out what AT&T's margins are on every Iphone and Iphone contract, especially since A)Apple is taking a cut of both the Iphone sales and a % of AT&T's monthly subscriber income B)Not every Iphone bought is being activated C) AT&T isn't making any money selling songs, Apple is making all the money through their Itunes store. Verizon Wireless may be subsidizing the Chocolate (which is costing them money), but they are making 100% of the monthly subscriber income and they are also making money selling songs from their VCast Music store. It may also be beneficial to find out what % of Chocolate users subscribe to VCast. If you take all of this information into account, you may find that the Chocolate is doing much better against the Iphone than most people assume in terms of how much profit it brings to each company. Now I don't know for certain what these numbers come out to but its just something to think about.
Reader Comments (Page 1 of 1)
Pete @ Sep 22nd 2007 2:54AM
Like Mark said, its definitely more about profit. However, somebody should be trying to figure out what AT&T's margins are on every Iphone and Iphone contract, especially since A)Apple is taking a cut of both the Iphone sales and a % of AT&T's monthly subscriber income B)Not every Iphone bought is being activated C) AT&T isn't making any money selling songs, Apple is making all the money through their Itunes store. Verizon Wireless may be subsidizing the Chocolate (which is costing them money), but they are making 100% of the monthly subscriber income and they are also making money selling songs from their VCast Music store. It may also be beneficial to find out what % of Chocolate users subscribe to VCast. If you take all of this information into account, you may find that the Chocolate is doing much better against the Iphone than most people assume in terms of how much profit it brings to each company. Now I don't know for certain what these numbers come out to but its just something to think about.