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Technology Stocks : Apple Inc.
AAPL 272.99-0.3%Dec 30 3:59 PM EST

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To: Curt Whitaker who wrote (63778)5/1/2007 4:39:37 PM
From: slacker711  Read Replies (2) of 213177
 
If they can sell 8M phones in CY 2008, that's an additional $168M per year in profit coming in

I'm not sure if I am missing something, but the numbers are much larger than that....

8 million * $7/month * 12 months = $672 million in recurring revenue a year.

I'm not endorsing the $7 a month number, but if it were that high, the profits to Apple would be absolutely huge. I would think that Apple would need to provide quite a few services to get Cingular to cough up anywhere near that kind of cash. The reason RIMM gets the $5/month is that their email apps are immensely profitable for the carriers. The $ per byte for email are ridiculous.

Slacker
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