Apple, AT&T and the iPhone’s Risky New Plan
Sunday, August 3rd, 2008
Wonder why the smoking-hot 3G Apple iPhone only costs $199, less than half the price of the original? Here’s a two-word hint: Randall Stephenson. Stephenson, who became AT&T’s chairman and CEO a year ago, championed the idea of paying Apple about $300 per device, analysts estimate, to help hold down the retail cost. The subsidy, which replaces another arrangement that gave Apple a portion of iPhone service revenue, will dilute earnings through 2009, AT&T says.
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Apple, AT&T and the iPhone’s Risky New Plan
