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To: Peter Sherman who wrote (4563)	1/12/2007 5:59:29 PM
From: Cogito	Respond to of 9255

>>Allen - Let's suppose John Doe goes into the Apple store in the Westchester Mall on July 5, 2007 and plunks down 599 bucks for an 8G Applephone. Does he then take the box to the AT and T store down the hall? Do they then activate? Does he take a coupon out of the box and hand it to the clerk? How does AT and T legally send money to Steve [ the subsidy, which I bet is a few hundred bucks. ]<< Peter - I don't know. The phone may well be activated right at the Apple Store. Or maybe it will work the way it did when I bought my first Treo (the 600) directly from Palm. I received the phone by FedEx, then had it activated by Verizon with one quick phone call. Why should there be any legal difficulty in AT&T paying Apple as per a legal agreement they have made between them? AT&T will owe Apple a specific amount for each iPhone customer who signs a contract. They'll pay what they owe. End of story. Also, I don't think the subsidy is necessarily that large. It seems to me that one could sell this kind of device profitably at a not much higher price. I think the subsidy may be two hundred bucks per unit at the outside. Of course, I'm just speculating, and I could be wrong about that. - Allen - Allen