Piper Jaffray: AT&T paying Apple $18 per iPhone, per month
49893
Over the life of a two-year contract, AT&T is paying Apple more per iPhone than it now costs to actually buy one, according to a financial analyst.
623036
(InfoWorld) - A company that insures laptops and smartphones may save the day for iPhone owners worried about their pricey handsets getting stolen or damaged. The just-introduced device costs $499 or $599, depending on storage, and has a slippery, rounded design with a glass touchscreen that covers most of its face. Yet AT&T, the exclusive mobile operator for the phone, won't sell insurance for it. And although Apple offers the AppleCare extended warranty for almost all its hardware products, the plan is not yet available for the iPhone. (Apple says it will start offering AppleCare for the phone some time this month.) Some participants on the cell phone site HowardForums said they were disappointed those types of coverage weren't available. Now, a third party is thinking about stepping in. A flood of potential customers have contacted Safeware about getting their iPhones insured, said Matt Wagner, executive vice president and general counsel of the Columbus, Ohio, company. Safeware has been in business insuring PCs since 1982 and started covering smartphones a few years ago, Wagner said. Before the iPhone went on sale in the United States last Friday, Apple's secrecy made it hard to evaluate, he said. "Now that it is released, we're kind of scrambling to find out if it's something we want to get into or not," Wagner said. Availability of parts and repair facilities are among the issues the insurer is examining. Safeware's portable electronics policy covers accidental damage, theft, vandalism, power surges, and natural disasters in the United States and Canada, according to the company's Web site. Coverage includes both the device and preinstalled software, and on a standard policy there is no deductible. Typical prices were not immediately available. AT&T prices its policies, provided by insurance company Asurion, at $4.99 per month. But the iPhone is so expensive that insurance for it would be too pricey for AT&T to market to consumers, the carrier said. For the same reason, AT&T won't sell insurance for Palm's Treo, Research in Motion's BlackBerry, and some other high-end handsets. Rival Verizon Wireless, by contrast, will insure any phone it sells. Also working through Asurion, it charges $4.99 per month with a $50 deductible. The iPhone does come with a one-year Apple warranty against "defects in materials and workmanship under normal use," according to Apple's Web site. AppleCare, when available, will extend that coverage for as long as two additional years. Apple hasn't said how much it will cost. Customers will have to sign up for AppleCare while the initial warranty is still in effect. To help customers stay connected while the iPhone is being fixed, Apple can provide an AppleCare Service Phone that can be sent from Apple or picked up at the Apple Store. But the loaner doesn't come free: There's a flat $29 "service fee," plus additional charges if the user doesn't return it on time after they get their own phone back. And as a warranty, AppleCare won't get you a new iPhone if yours is damaged by accident or stolen. Many people wouldn't need to take out a separate policy for an iPhone, according to the Insurance Information Institute. Most homeowner's or renter's policies would cover theft or damage to the phone, even if it were stolen from their car, said Mike Barry, a spokesman for the group. However, Safeware's Wagner said those policies typically don't cover a portable electronic device outside of the owner's home or car. Ironically, while AT&T won't insure the iPhone because it's too expensive, the Institute thinks the iPhone wouldn't be worth a separate policy because it isn't valuable enough. "It really wouldn't make much economic sense to have a policy taken out separately for the iPhone," he said.
358479
For the last several weeks, iPhone users have been by turns amused or enraged over the sheer heft of the bills they are receiving from AT&T.
145762
By Ganey, Jayme S  Apple iPhone, $499  Up your tech cred with this cutting-edge, multitasking device. The iPhone, featuring a sleek touch screen, does triple duty as a mobile phone, wide-screen iPod and Web browser.
331363
The company also benefited from Appleâs strong sales of the iPhone, for which AT&T is the sole carrier.
715026
Piper Jaffray analyst Gene Munster believes Apple is taking $18 per month for each iPhone subscriber under its&#160;deal with AT&amp;T.Apple has confirmed it has reached a revenue deal with AT&amp;T, but has never revealed what it is. Munster -- who once thought Apple was receiving $3 per subscriber has changed his mind based on information gleaned from&#160;Apple&#39;s most recent financial report.Apple&#39;s accounts describe $118 million in iPhone and iPhone-related revenue during the quarter. Apple has previously confirmed plans to account for iPhone (and Apple TV) sales across a two-year period.Munster took the 1.4 million iPhones Apple&#39;s sold so far, took away the 250,000 units Apple said it believes were bought to unlock from AT&amp;T&#39;s network, and calculates that 1.15 million revenue-generating iPhones contributed to Apple&#39;s quarter.If Munster&#39;s estimates are correct, AT&amp;T will pay Apple $432 per iPhone subscriber across the two-year life of the contract.Macworld.co.uk is an InfoWorld affiliate.
62649
Although Apple won't announce its quarterly earnings that will include the first two days of iPhone sales until Wednesday, AT&T said Tuesday that it had activated 146,000 iPhones on the 29th and 30th of June, far below analyst expectations.
148969
Apple Inc. and AT&T Inc. today unveiled three new service plans for the iPhone; all offer unlimited data transfers and range in price from $60 to $100 a month.
83192
Owners of Apple's iPhone are beginning to receive their first monthly bill from AT&T since the new purchase and are discovering a number of mistakes on the wireless carrier's part. Most notably, AT&T is not removing prior data plans, charging users $20 for the iPhone data, as well as up to $50 for their previous package.
534868
Touting the first service letting callers share live video between cell phones, AT&T releases its new Video Share service in three cities for $5 to $10 a month. But it's not for the iPhone, sorry.
307327
Apple Inc.  said on Tuesday  its hotly anticipated iPhone could cost up to $3,000 with a  required two-year service contract, but that didn't stop a  handful of admirers from starting to wait to buy the device.
751443
AT&T Mobility LLC has received more than 1 million inquiries for Apple Inc.'s multimedia and Web-enabled iPhone cell phone, the San Antonio company said.
388709
The iPhone won't be just for customers living in the big cities. On the day it is introducing the hugely hyped cell phone, AT&T announced it will acquire wireless provider Dobson Communications for $2.8 billion in cash.
13235
Shares of Apple Inc  fell 4 percent on Tuesday after AT&T Inc  issued initial subscriber numbers for customers of Apple's iPhone that were below analyst estimates.
736043
Apple Inc.'s  iPhone may be  too expensive for most Americans, but the much-hyped device is  expected to help AT&T Inc.  win quality customers and  drive shoppers into its stores.
452474
(InfoWorld) - The number of iPhones manufactured by Apple may not be enough to meet customer demand when the smart phone goes on sale later Friday, CEO Steve Jobs said in an interview published the same day. "We had to make our best guess as to what the demand was going to be and what supply we were going to put in place many, many months ago. We built factories to build these things and everything. We've taken our best guess but it wouldn't surprise me at all if it ain't enough," Jobs told the Wall Street Journal in an interview. The iPhone, which combines the functions of an iPod with a smart phone, goes on sale in the U.S. at 6 p.m. and is one of the most anticipated gadgets in recent years. Two models will offered, the 4GB model costs $499 and the 8GB model is priced at $599. Users also have toÂ sign a two-year contractÂ with carrier AT&T. The cost of those plans range from $59.99 per month to $99.99 per month. Some prospective buyers have beenÂ camping outside storesÂ in hope of being among the first to own one of the new smart phones. A surge in demand for the iPhones could mean the devices are hard to come by at first, depending on the number that Apple and AT&T have in stock. A shortage of iPhones would not be unusual. Vendors often have a limited number of units to sell when a new product hits the market. In the case of products where demand is particularly high, such as for new game consoles, limited product availability -- whether intentional or not -- andÂ long lines outside storesÂ help build buzz and generate media coverage. Jobs also downplayed concerns over the iPhone's dependence on AT&T's EDGE network, which is slower than 3G (third-generation) networks. "You know every (AT&T) Blackberry gets its mail over EDGE. It turns out EDGE is great for mail, and it works well for maps and a whole bunch of other stuff. Where you wish you had faster speed isâ¦on a Web browser. It's good enough, but you wish it was a little faster. That's where sandwiching EDGE with Wi-Fi really makes sense because Wi-Fi is much faster than any 3G network," Jobs told the Wall Street Journal. He said the iPhone had been designed to switch to Wi-Fi when such networks are detected. Â
297232
Apple Inc.  and AT&T Inc.   said on Tuesday they will offer three price plans,  starting at $59.99 per month, for the widely anticipated iPhone  that is set to go on sale this week.