Stock Analyst Turley Miller offers some of his research as it refutes many of the claims made by analyst Brian Marshall (video) yesterday.  Among them:

  • AT&T’s subsidy for the iPhone is $400, not $450 as Marshall states.  Best Buy buys 16GB iPhones from Apple for $542, and sells it for $199 with a 24 month service contract. AT&T reimburses Best Buy $400.  Therefore, Best Buy’s margin is $57/iPhone.
  • That subsidy wouldn’t change if other carriers offered the iPhone as Marshal states.  Tim Cook stated at a earnings call that it hadn’t in other countries where they went from exclusive to multiple carriers that the subsidies didn’t change.
  • iPhone users represent about 14% of AT&T

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