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AT&T paying Apple $325 per iPhone 3G?

According to one financial analyst, AT&T is paying Apple $325 in subsidies on each iPhone 3G.

Barron's Tech Trader Daily spotted a report from Oppenheimer's Yair Reiner that claims Apple will wind up getting just as much revenue from the subsidies as it did from the revenue-sharing agreement between Apple and AT&T that was in place before the introduction of the iPhone 3G last week. Reiner notes that this figure is far more than the typical $200 subsidy most carriers pay to reduce the price of other smartphones, and it's supplemented by a $… Read more

AT&T: No vacation around the iPhone anniversary

It would be helpful if from now on, AT&T's HR department would just send their vacation policy e-mails directly to tech writers, since they're going to get out anyway and they pretty much apply to us as well.

The Boy Genius Report snagged an internal e-mail that made its way around AT&T earlier today instituting a vacation freeze for all sales employees between June 15 and July 15, in order to support "an exciting new promotion/product launch." Hmm, whatever could that be?

A similar e-mail was sent to AT&T … Read more

A $200 3G iPhone? Yeah right.

Why is everyone making such a big deal about this $200 iPhone report from Fortune? Evidently, the same folks who are praising AT&T and Apple didn't read the report and are naive enough to believe that this is ever going to happen. There's no chance that the next iteration of the iPhone, presumably featuring 3G, will sport such a low price tag.

According to Fortune, "When the 3G iPhone is introduced this summer, AT&T, the exclusive U.S. iPhone sales partner with Apple, will cut the price by as much as $200, according to a person familiar with the strategy."

That price cut will put the two versions of the iPhone -- an 8GB model and a 16GB model -- at $199 and $299, respectively.

Fortune said that a person close to the dealings believes the subsidy will only apply to AT&T stores and if anyone purchases the 3G iPhone in an Apple store, they will be forced to pay full price. According to the report, all cash lost on the subsidy would be recouped on the service charges after a few months.

Fortune and its hotshot source is kidding, right?… Read more

3G BlackBerry delayed until August?

Updated 4/25, see explanation at bottom.

A technical glitch in an upcoming BlackBerry release will prevent an iPhone-Blackberry showdown in June, according to Fortune. AT&T will delay the launch of the BlackBerry 8900 from June to August after concerns about call quality, the magazine reported Thursday, citing unnamed sources. The 8900 will be Research in Motion's first 3G BlackBerry for AT&T, and it had been expected to make its debut right around the same time as Apple is expected to launch a 3G version of the iPhone. UPDATED 6:10pm PT - The device … Read more

Democratic bill could force Apple, AT&T to unlock iPhone

When T-Mobile began selling Apple's iPhone in Germany last fall, a legal skirmish ensued, forcing the wireless carrier to sell it untethered to a contract--at $1,460, no less. T-Mobile eventually persuaded a court that the two-year contract was legal.

Now that same kind of European rule would be imported into the United States--meaning AT&T would be legally required to sell a contract-free iPhone--if a new Democratic proposal in the U.S. House of Representatives becomes law.

Sponsored by Rep. Ed Markey (D-Mass.), a congressman who serves as chairman of a House telecommunications and Internet panel, it'… Read more

3G iPhone coming in 2008 says AT&T

Bloomberg reports that AT&T will be giving the iPhone a real broadband connection in 2008. Randall Stephenson, AT&T's CEO, told a Churchill Club gathering. This may be due to improved battery life for the iPhone that Apple cites as the primary reason for keeping the iPhone on a 2.5G network for now.

"You'll have it next year," Stephenson said in response to a question about when the 3G iPhone would debut. He said he didn't know how much more the new version will cost than the existing model, which sells for $399. Apple Chief Executive Officer Steve Jobs "will dictate what the price of the phone is,'' he said....… Read more

Piper Jaffray: AT&T paying Apple $18 per iPhone, per month

The exact details of AT&T's revenue-sharing agreement with Apple have not been disclosed, but one analyst thinks that over the two-year life of a user contract, the amount exceeds the actual price of the iPhone.

Silicon Alley Insider spotted a research note from Piper Jaffray's Gene Munster estimating that Apple is receiving $18 per month for each iPhone subscriber, under the revenue-sharing agreement between the two companies. Apple has confirmed that such an agreement exists, but has not shared the details about exactly how much cash it's getting from the revenue AT&T makes … Read more

Crunching the numbers: What Apple's iPhone strategy should be

While reading AppleInsider today, I came across two stories about analyst opinions on the current state and future of the iPhone. And while both provide some valuable information about where Apple may stand in its contract with AT&T, they made me think -- what should Apple be doing to maximize profit and shareholder value?

And while my conclusion is based upon some complicated mathematical calculations, the result had nothing to do with bricking iPhones and everything to do with Apple maintaining its relationship with AT&T as well as iPhone unlockers. In fact, the result of my calculations may surprise you.… Read more

iPhone bricking: I blame AT&T

After a while with my newly dehacked iPhone, I'm left with Tap Tap Revolution withdrawal, many fewer icons and a loss of some of the features I had come to appreciate from my iPhone.

Could you say I'm bitter? Perhaps. But what may surprise you is that I've had a bit of a change of heart. (In my pre-update post), I told you that if Apple decided to brick iPhones and disrupt hacks, it will have single-handedly destroyed its ability to maintain its post as the world's most influential tech company.

But after analyzing the update that actually came out, I don't blame Apple anymore. Instead, I blame AT&T for forcing Apple to do something that it has never done before and effectively become the bad guy while AT&T laughs its way to the bank.

Shame on you, AT&T.… Read more

Free playlist: new releases

Across the board, it's been a great week in music. With the fall releases pouring out, we just added new songs from James Blunt, Dashboard Confessional, T.I., Interpol, and more. One notable release is our full album stream of Herbie Hancock's latest "River: The Joni Letters," which is a tribute to Joni Mitchell (who conveniently enough just released an album as well). Check out the song "Court and Spark" featuring Norah Jones. Since there's some much to swallow this week, we made it simple for you by compiling this free playlist. Now … Read more