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Friday, November 21st, 2008
articles.php?which=AppleTinkersWithItsiPhoneBusinessPlan
Apple Tinkers With Its iPhone Business Plan.

I promised that today wouldn't be all Apple, all the time. So, that was a lie. But because we're a business plan blog, it's worth noting that the release of the new 3G iPhone today represents a change in the Apple business plan. Forbes has an interview with Apple COO Tim Cook who says they are giving up after-sale fees from AT&T and the carriers it works with abroad (translation: a portion of the customer's monthly bill). Instead, the word is that to lower the price on the 3G to $199, AT&T had to subsidize some of the phone's cost. The idea is that this cost will be offset by the major increase in the number of iPhone users worldwide, which Apple expects to reach 10 million by the end of 2008. Nonetheless, AT&T today said that the new agreement will "likely result in some pressure on margins and earnings." Stay tuned to see how that plays out.

Steve

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