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Technology Stocks : Apple Inc.
AAPL 267.26-1.4%Jan 5 3:59 PM EST
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To: Eric L who wrote (69140)9/24/2007 5:49:05 PM
From: slacker711   of 213178
 
We don't REALLY know what Apple's net wholesale price after credits and debits to AT&T and other carriers (which may be lower than MRP) is, do we (or did I miss something authoratative in this regard)?

The only concrete piece of information that we have about sales of the iPhone through AT&T stores is that they generate a small profit on the sale of each phone through their retail stores. In addition, AT&T made comments prior to the launch of the iPhone about the fact that they have virtually no risk with the iPhone....which leads me to believe that T isnt carrying the iPhone's in their stores on their balance sheet, and might be generation the profits through a commission. If that is true, all of the sales to end customers are really from Apple....and thus, no "wholesale" price from which to calculate royalties.

Beyond that, Apple has confirmed monthly payments of some kind, but I dont think anybody has said whether it is a fixed payment or the widely rumored percentage of revenues. I believe a couple of analysts have also reported that AT&T is paying a fee to Apple for the customers that use iTunes for activation, but this hasnt been even remotely confirmed.

As usual with Apple....way more questions than answers.

Slacker
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