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« Ilium software celebrates 11 years this week with contests and a sale | Main | Review of CellPoint Flamingo Music earphones »

June 16, 2008


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Chris Carlin

It's not quite true that Apple gets their money either way: yes, they profit off sale of the device itself, but they also get a kickback from the carrier. Apple gets far less money from a person using the phone on other networks.

One thing you may not have heard is a new sales policy where Apple will no longer let a customer walk out with an un-planned phone.

I suppose between the low price and the new policy Apple is deciding to focus on the service kickback as the source of revenue. Maybe they've decided to get as many iPhones as possible into consumers' hands so they can get OS X as widely deployed as possible.

Stephen Skarlatos

Good points Chris. I had read a rumor about the new sales policy which makes sense given the subsidy, but did not hear it was official.

Yes, they clearly want to get OS X into as many consumer's hands as possible, since it is helping to drive Mac sales.

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