Apple makes $831 for every Activated iPhone

October 30, 2007
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Since the launch of the iPhone in the US, there has been a lot of speculation about how much Apple makes for each iPhone that is activated.

iphone uk

According to Mobile Magazine, Apple is making a whopping $831 (about £415) for every activation, which includes the $399 purchase price and Apple also gets a monthly kickback of $18 for every iPhone on the AT&T network.

So over two years thats a pretty decent amount of revenue for a mobile phone, and I suspect that Apple have a similar revenue share in place with O2 for when the iPhone launches over here next month.

via Mobile Magazine

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Filed Under Apple, iPhone 

Comments

4 Responses to “Apple makes $831 for every Activated iPhone”

  1. Matthew UNITED STATES Windows XP Mozilla Firefox 2.0.0.8 on October 30th, 2007 2:12 pm

    Heck. Thats a lot of money they are making per phone. I guess with the size of Apple that they can make demands like that from the provider. If O2 would have turned down the offer then another network would have jumped in and still made a killing. I’d still prefer to see the iPhone sell at less then £100 on an 18 month contract.

  2. {fatgadget} UNITED KINGDOM Windows Vista Mozilla Firefox 2.0.0.8 on October 30th, 2007 3:17 pm

    Hi Matt

    I tend to agree, the £269 + the O2 contract makes it an expensive proposition, I still haven’t decided whether to get one myself yet, the only thing that put me of is the price + the contract.

    If it was £100, or you weren’t tied into the contract for so long I wouldn’t hesitate.

    I suspect a lot of people have a similar view.

  3. Matthew UNITED STATES Windows XP Mozilla Firefox 2.0.0.8 on October 30th, 2007 3:25 pm

    Exactly! I just think it’s crazy paying that much for a phone with a contract. I think the most I have forked out was £40 or £50 on contract. I am more happy that they went for 18 month contracts for the UK version as I think 24 months is scandelous for the US.

  4. Neece UNITED STATES Windows Vista Mozilla Firefox 2.0.0.8 on October 31st, 2007 3:58 am

    That’s a lot of money, for sure. Thanks for sharing this, I had no idea they get a monthly kickback. Wow.

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