Apple: An iPhone Bonanza
According to The New York Post, Apple (AAPL) “get 10 percent of the revenue from voice calls and data usage” in the new deal it has cut with T-Mobile to sell the handset in Germany.
For AAPL, that is a tremendous deal If T-Mobile’s operating margins are anything like AT&T (T) Wireless, it is giving up a lot. Last quarter, the AT&T division had operating income of $1.6 billion on revenue of $10.395 billion.
The contract may show just how anxious carriers outside the US are to get their hands on an exclusive deal to sell the AAPL product. The Post writes that “Apple is also reported to be close to similar agreements with wireless carriers O2 in the United Kingdom and Orange in France.”
If these reports are correct, APPL may earn much more off each iPhone sold than most on Wall St. expected. If Apple hits its goal of selling 10 million handsets by the end of 2008, the contribution to the company’s P&L could be unexpectedly good.
Douglas A. McIntyre