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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: pyslent who wrote (75755)	6/17/2008 11:23:58 PM
From: inaflash	Read Replies (1) \| Respond to of 213177

Odd, though because I would think that AT&T would be happy to transfer a 2G iPhone user to the more expensive, non-revenue sharing 3G plan. Not that simple. I'd bet Apple would have something to say if 24 month contracts were cancelled and they stopped receiving their revenue sharing. At the very least, I expect Apple would have to be paid off for whatever remaining contract were present in the 24 month. Further, a case could be argued that customers remaining with ATT beyond 24 months, regardless of their phone used, are original Apple/ATT customers who should be covered under the original revenue sharing agreement. Most likely the re-negotiations for 3G addressed this unspecified group and they won't have to go to court to settle any unclear terms. Most fortunate that the number of such folks is small (as iPhone grow quickly) and with turnover, any residual would be pretty small. A small one time payment from ATT to Apple to cancel the EDGE 2/2.5G post 24 month revenue sharing would help both companies forget it ever happened, and save both a ton in administrative costs.

To: pyslent who wrote (75755)	6/18/2008 12:08:36 AM
From: slacker711	Read Replies (2) \| Respond to of 213177

The company is treating the iPhone 3G pretty much just like any other phone in that people who are ineligible for upgrades have to pay the full, unsubsidized price for the phone. People who qualify for upgrade status and people who have an original iPhone are free to upgrade at the $199/$299 price set by Apple. This paragraph from Gizmodo makes it sound like people upgrading from a 2G iPhone will get the subsidized price. I dont see much reason for AT&T or Apple to object. As you say, AT&T gets a higher priced plan and Apple gets to sell another phone that is likely to bring more profit than the next 12-16 months of monthly payments. Also, the other iPhone is likely to stay in service with a new person. If the phone remains on an AT&T iPhone plan, I would think that there is a reasonable chance that Apple would continue to get the payments. Slacker