As pricing details continue to emerge about the new iPhone, one analyst estimates that Apple stands to make more from each device than previously thought.
Gene Munster, of investment bank Piper Jaffray, said that AT&T’s complete official pricing for iPhone 3G units suggests Apple is making more from the reportedly abundant iPhone stock than estimated in the past.
Although the US$199 starting price is much lower for the customers themselves, the US$599 pay-as-you-go price suggests that the carrier subsidy cuts much deeper.
If so, then this hides potentially greater profits for Apple, which could be asking US$500 for each iPhone versus an earlier estimate of US$425.
“This discrepancy leads us to believe our [average selling price] is conservative,” said Munster.
The analyst said that a change of this level would boost Apple’s revenue for 2009 by eight per cent.