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Thread: Who's Making Money off the iPhone?

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  1. #1
    MMi Staff Writer Paul Daniel Ash's Avatar
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    Default Who's Making Money off the iPhone?


    It's been clear for some time that the iPhone is a huge moneymaker for both Apple and its US carrier AT&T, as well as the constellation of component suppliers that make parts for it. Tracking the actual dollar figures, though, is a difficult task given the complexity of the iPhone ecosystem and the secrecy surrounding Apple and AT&T's business relationship. A post on GigaOM this week, though, took a stab at pulling together what's known and believed to be true about the iPhone business, and did it in an innovative, highly readable format. Instead of a long post filled with dry facts and figures, the site created a graphic with simple charts and graphs. It's an interesting "read."

    For the 5.2 million iPhones it built in the third quarter of this year, Apple spent $1 billion with its components suppliers and manufacturing partners. The monetary gain alone is not the only benefit an iPhone parts supplier garners, though: having one of your components used in an iPhone gives bragging rights that helps those companies negotiate better deals for their own raw materials and passing those savings on to Apple. As an analyst quoted in the graphic points out:

    When you get a part in the iPhone, there’s a recognition that goes with it, and that can be good for business with others down the road.
    When Apple sells a $199 iPhone, AT&T reportedly pays out $351 in subsidies. Apple charges AT&T $550 per iPhone that it buys for resale in its online store or retail outlets. AT&T later makes back the money it spent on the phone in monthly service charges. With an unlimited 3G plan sold for $30 a month, AT&T makes $720 in data plan revenue over a two-year contract, which adds up to $2 billion US for the carrier.

    image via Geek.com from original GigaOM graphic

  2. #2
    iPhone? More like MyPhone
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    Seems like there is plenty to go around to make everyone very wealthy.

  3. #3
    Green Apple
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    Wow here really is a large amount of money being made here on both sides.

  4. #4
    My iPhone is a Part of Me hollow0's Avatar
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    It makes me sad to know how much money i'm disseminating to AT&T But i love my iPhone...

  5. #5
    Livin the iPhone Life tudtran's Avatar
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    At&T made lots of money off of the iPhone.

  6. #6
    Green Apple sphangman's Avatar
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    wow, RIM have gain more ground than apple over the same period ..

  7. #7
    "The Truth" metaserph's Avatar
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    While everyone keeps choosing sides and picking favorites, they ALL keep making money. That's what companies go into business for.

  8. #8
    Livin the iPhone Life rhekt's Avatar
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    and the world continues to turn....*shrugs*
    killall Terminal[]

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    Green Apple HITCH's Avatar
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    ๏ ̯ ๏

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