Apple Makes $831 For Every iPhone Activated

Apple Makes $831 For Every iPhone Activated


Ever since AT&T snatched up the exclusive rights to the Apple iPhone in the United States, people have wondered what kind of agreement was forged between the two companies. We don’t have to wonder any more.

The New Yorks conducted a rather in-depth analysis of Apple’s recent financial statement and they have concluded that Apple rakes in a cool $831 for every iPhone that leaves the shelves and gets activated by the guys at AT&T. You see, Apple gets an $18 a month kickback from AT&T for every iPhone running on the network. Multiply this through by a two-year contract, and Steve Jobs is smiling with $432. Add the $399 purchase price and the grand total comes to $831.

Obviously, this figure isn’t pure profit. They have to pay for manufacturing costs, R&D, and incidentals, but it does give you some perspective as to how much money Apple gets plunked into the corporate bank account each time an iPhone gets sold.