Does Apple Get $36 Monthly Service Revenue for Each iPhone?

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  disposableidentity10/28/08 Report as spam
  1

  RE: Does Apple Get $36 Monthly Service Revenue for Each iPhone?

  As far as we know from reading the financials Apple
  receives the AT&T subsidy as a lump-sum when an
  iPhone is purchased.
  
  Look at the cash they're reporting. It's money in the
  bank. It is accounted for as a subscription (which is
  why we don't see it in the GAAP numbers) but the cold
  hard cash is there, not spread out monthly like you're
  suggesting. That's why Apple is pointing it out in the
  second paragraph of their quarterly report. Incase
  people are too stupid to figure it out for themselves.
  Which apparently they are.

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  ErikSherman10/28/08 Report as spam
  2

  RE: Does Apple Get $36 Monthly Service Revenue for Each iPhone?

  >> It's money in the bank. It is accounted for as a subscription (which is why we don't see it in the GAAP numbers) but the cold hard cash is there, not spread out monthly like you're suggesting. That's why Apple is pointing it out in the second paragraph of their quarterly report. Incase people are too stupid to figure it out for themselves. Which apparently they are. <<
  
  But the same is true for licensing revenues for companies like Microsoft. Whether the cash is there or not, given that Apple is so close-mouthed about any proprietary information, including contract terms, you're assuming that it's not refundable under any circumstances. I think that's a big assumption to make.
  
  The iPhone's business model success is built on the continued subscription success of the carriers. Should that get shaken up, so will Apple's position. I can't imagine that AT&T would be so daft as to assume that it would get all the revenue from all subscriptions and not have some way of getting money back.