Apple iPhone Rebate

July 3rd, 2009 Posted in Mp3 Player

Apple iPhone Rebate: A hypothesis

Even if you won’t.So when I see the whole Apple iPhone rebate thing? The evil marketer cackles with morbid cacophony.

What Apple iPhone thing?Well, in case you didn’t hear, Apple recently cut the price of the iPhone by $200. Wow. If only it hadn’t been planned from the beginning.Here’s my hypothesis about what really happened:

The Apple rebate? It’s all marketing, people. Marketing.

And I’m willing to bet the price-reduction-rebate tango has been part of the product launch plan since day 1. That number was based on the “new” price of the iPhone ($399). That number was not based on the “original” price of the iPhone ($599).

The original price provided Apple with a good deal of float. Because most of us iPhone buyers? Price be damned.

Well, Apple users will. Mind you, Apple is just moving the iPhone price to the required price now. (And I’m not even going to mention how the new iPod Touch has bolstered Apple’s buying and production power, allowing them to make the Apple iPhone rebate at an even cheaper price than they could previously. Winning hearts and friends.

$200 - $100 = Apple is still $100 up.

It’s not cash folks. It’s a gift certificate.

You know what happens if you don’t use a gift certificate, right? Genius. Marketing genius. Evil, but genius.

Apple seriously considering iPhone rebate, subsidy

Revenue share and bounties

Wu also told clients that he believes Apple will be paid a “bounty” for each AT&T customer it signs up through its retail and online stores. “In addition, Apple will likely participate in a revenue sharing agreement where part of the monthly fee charged to customers will go to Apple ,” he explained.

Recurring revenue streams from carriers

In addition, the AmTech analyst estimates Apple to garner “mid to high single digit incremental high margin revenue per user” from its carrier partner, which could potentially surge as high as “low double digits” depending on future iPhone features.

Adding Apple to AmTech’s Focus List

As a result of his findings, Wu has placed Apple on AmTech’s “Focus List” while also raising his estimates and price target on consumer electronics firm.

For fiscal 2008, the analyst now estimates Apple to generate sales of $31.1 billion and per-share earnings of $4.15, up from $28.8 billion and $3.75.

“We continue to view Apple as among the strongest fundamental stories with its four-pronged vertically integrated end-to-end portfolio (Mac, iPod + iTunes, Apple TV, and iPhone) and see several catalysts in the quarters ahead, including Mac OS X Leopard, new Macs, new iPods, new movie and carrier partners, and lower cost cell phones,” the analyst reiterated in his note to clients.

Wu also raised his price target on shares of Apple iPhone rebate to $145 from $118.

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Tags: Apple iPhone rebate, iPhone price, price of the iPhone

This entry was posted on Friday, July 3rd, 2009 at 10:39 am and is filed under Mp3 Player. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Apple iPhone Rebate”

Various Brands of IPod Speakers | Mp3 Players | Mp3 Player Speakers | Mp3 Player Accessories Says:

July 8th, 2009 at 2:08 am

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Apple iPhone rebate

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