iPhone 3G: every party wins!!

Three parties are involved in this business: Apple, the operator and the user. For Apple, iSupply considers that Apple will receive about the same amount (i.e. $500) per iPhone 3G unit as it did for the iPhone 2G. But with much larger volume, component prices would decline by about 23%. The iPhone 3G factory cost should be around $173 (vs $226 for the iPhone 2G)and in final Apple would get a 50% profit margin. For the operator, we can take the ATT case. ATT will charge an extra $10/month (total of $30/mo) for a 3G data plan (of 2 years) with the new iPhone. A good operation for ATT that will receive at the end of the plan about $40 per user more than with an iPhone 2G. For T-Mobile, the user will have to pay a €29 fee per month (2-year contract) and buy the handset for €250, and more interesting (for T-Mobile) a 2-year plan at €69/mo with a €1 handset. For Softbank (Japan) the monthly fee will be about $68/mo and an up front handset cost of $215. In short, the operator will subsidize the handset and recoup that investment over the course of a 24-month service agreement. For the user, it will get 3G speed, GPS capabilities and a better up-front price (about $200 less).

Good conditions for a big success.