AT&T’s iPhone Subsidies are Huge

CNET reveals that AT&T will be paying Apple $325 to $425 (depending on where the phone was purchased) per iPhone sold – much more than traditional smart phone subsidies. All of this adds up to much cheaper phones for customers. As I reported earlier, bundling has made such benefits possible. Now, CNET has placed a clear monetary value to such benefits (one that, I might point out, exceeds the extra $240 for the new 3G data plan over the old 2G plan). When companies and consumers can experiment with different contractual arrangements, both groups win.