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3G iPhone: Apple Business Model Changes; No Subscription Fees From Carriers For Next-Gen iPhones

By Joseph Weisenthal - Mon 09 Jun 2008 01:19 PM PST

Amidst all the hoopla of today’s iPhone launch, Apple (NSDQ: AAPL) has made an interesting filing with the SEC, which explains that business model behind the iPhone is changing. Here’s the key paragraph, which indicates that the new 3G iPhone is no longer a subscription business for the company: “Apple has signed multi-year agreements with carriers authorizing them to distribute and provide network services for iPhones in over 70 countries. These agreements are generally not exclusive with a specific carrier, except in the United States, United Kingdom, France, Germany, Spain, Ireland, and certain other countries. Under the vast majority of these agreements, Apple will not receive follow-on revenue generating payments from carriers for the new iPhone 3G beyond the purchase of the device by carriers or a commission on sales of the device by Apple. Apple will continue to receive payments from cellular network providers related to first-generation iPhones as long as they remain active on authorized networks.”

Posted in: Companies, Apple



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