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Thread: AT&T CEO: Data-Only Plans for Smartphones Are Inevitable

  1. #21
    Quote Originally Posted by sziklassy View Post
    AT&T never went by Cingular. It was a separate company that was bought by AT&T. Hence AT&T didn't truly allow data only plans. They may have grandfathered Cingular plans once the Cingular name was removed.

    The issue these companies are having are with subsidies. You basically need to be paying more than $30 a month for a subsidized iPhone to become profitable. Do that math. If AT&T is eating $400 on every iPhone they haven't even broken even half way through your contract. And remember, you are also paying for service. A lot of people take a cell phone contract and turn it into a "rent to own" agreement in their heads. That really isn't what this is.
    Ok, let's do the math....let's assume that on a $39.99 plan with a $20 data addon (total of $59.99) that they have a cost of $25, I am sure their cost is much, much less, but let's do the math in their favor. That means they have a profit of $34.99 per month. That means in about 11 months they have made up for the "$400" that they are eating. Although, it should be noted that they are not eating $400, it is really only about $200 or so that they are probably eating due to agreements with Apple that they will purchase x number of phones in y number of month. Remember it is to Apple's benefit to get as many phones out there as possible, as they make A LOT of money off of App, Music, Video and iBook purchases.

    So, really, overall they are making plenty off the phone.

  2. #22
    My iPhone is a Part of Me TheDirtyDiddler's Avatar
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    Good. I'm paying for the minimal 450 minutes a month, and I use probably 45 whole minutes a month.

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