Who Is Getting Rich Off the iPhone?
Graphic courtesy of Column Five Media
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Graphic courtesy of Column Five Media
Related research and analysis from GigaOM Pro:
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Very interesting, I had always wondered how they were making money on the iPhone.
Also, love the format of the post. Like reading a magazine.
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Wow, awesome post! Really love the format! Much more effective than 1000 word post.
Don’t forget that the AT&T customer is not able to leave until after the 24 month period, so the revenue is guaranteed in a sense. Additionally, if you are longer terms customer, they are making money on you in terms of retention and acquisition costs. Think about the $99 iPhone 3G. That is likely making more money than the top of the line model.
I doubt that many app developers are making a hell of a lot. It is a business, but selling apps can be unstable with a hefty up front investment. I tend to think that like the web, we’ll see a shift to more business critical application models. This includes publishing models and sales channels. I am getting a lot of interest as of late in the catalog space now that the urgency surrounded Android has subsided a bit. Although I am agnostic, there has been a shift of perception back towards the iPhone as the primary app platform.
Interestingly the early termination penalty is 180 and goes down every month ..
which means an early termination costs AT&T 170 bucks.
So If we all got our iPhones and terminated the contract immediately AT&T is in ….
I am sure they have some deal with Apple to cover that .. no?
Very interesting/unique post!
thanks.
Surprise, surprise!
Hey, that graphic really turned out well, do you mind me asking what you used to make it? I presume illustrator but I’m not sure
@amen–thanks, the graphic itself was produced by Column Five Media, which specializes in infographics. They use a variety of graphical tools.
Sebastian
note that the profit split between AT&T and APPLE is almost 50/50, each getting about $370. Apple also handles the marketing and advertisement cost. Apple could not trust AT&T when it comes to branding and ad. This is a win-win situation for all involved, users are happy, suppliers are happy, AT&T and Apple are happy, This is how innovation works for the economy!
Aaaaaaagh. Huge moron graphics hurt the brain. Too much screen area, too little content. Also, too chunky, atomic, and powerpointy. Only Iphoners could love this tripe.
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I found the presentation refreshing and–more importantly–engaging.
OMG. At first I didn’t realize they were graphics. Why aren’t they HTML. It could have been done just as easy in HTML.
Oh yeah… MSIE can’t do HTML.
Like the graphics, but where is the Apple numbers at the end? Aren’t they getting rich off the iPhone too?