From what has already been confirmed by now is that Apple will discontinue revenue-sharing contract with AT&T and, apparently, all other providers in countries that the iPhone 3G will sell.

We also know that AT&T will offer $200 subsidy for iPhone 3G, which will now sell for $199 (8GB). This means that the normal price of the iPhone 3G is $399.

Based on the facts above, what bothers me to understand is what Apple’s take on this deal is? If Apple is not going to make money from monthly subscriptions, why would they stick with a single provider? Can they not sell more if they just price the iPhone $399 and sell it to everyone?

the new relationship of subside means faster income for apple, of course it's less but still they are beting on more sales at a lower price point (chinese mentallity), this is the equation:

apple still receives 399$ per phone and give up on their monthly share "thinking" they would sell more phones through att.

att pays 200$ per phone, but charges you more for 3G plan during 24 months and keeps 100% of communications revenue, also plans on getting more customers through cheaper 3G iphone

Originally Posted by aranmor

they are beting on more sales at a lower price point (chinese mentallity)

It has nothing to do with Chinese, it is just simply called Business Mentality where only Profit matters.

Apple just show more and more about their gluttony.

Originally Posted by XianLi

It has nothing to do with Chinese, it is just simply called Business Mentality where only Profit matters.

Apple just show more and more about their gluttony.

I'm sorry if I offended you, but in business hte chinese method refers to sell more for less price, nothing but a reference

Originally Posted by aranmor

apple still receives 399$ per phone and give up on their monthly share "thinking" they would sell more phones through att.

I don't think apple is that stupid to "think" that they will sell more units through att alone. Do you remember how much was iPhone selling in eBay when it was first introduced (even until a few weeks ago)? There is something else that we're missing here...

who knows, if we are going to speculate... maybe apple is preparing the soil for a carrier free iphone, nobody knows the terms of the first arrangement but if they come up with a "different" product maybe they can commercialize it out the att agreement, probably a slightly different iphone called iphone nano?