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Ruh-Roh! Got iPhone but no got service activation.

Buyers report long activation delays - 40 hours without full service - AT&T taking brunt of the blame.

While there are still some places where you can buy an iPhone, the warning coming from some bloggers is do not expect to use it any time soon. The iPhone is being called the iBrick by some bloggers because of the slow activation service from AT&T. The news coming out this morning from over the weekend is mostly positive. There are some complaints about the iPhone, but they are minor compared to the few who are upset because they cannot activate their phone.
 
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How much does Apple make of each iPhone?

Lots!

NEW YORK -- Apple Inc.'s shares jumped in high-volume trading Tuesday after researchers said the company will reap a gross profit margin in excess of 55 percent on its 8 gigabyte iPhones.
Apple shares added $5.91, or 4.9 percent, to $127.17 in an abbreviated trading session that ended at 1 p.m. due to the upcoming July Fourth holiday. During the past year, the stock has traded between $50.16 and $127.61, running up in recent months in anticipation of the hybrid cell phone, media player and wireless Internet gadget's June 29 release.
On Tuesday, the research company iSuppli reported that a tear-down analysis of the iPhone showed its bill of materials and manufacturing costs totaled $265.83. That means Apple would generate a margin of more than 55 percent for every 8 gigabyte iPhone it sold for $599.
...
Apple does not disclose its margins for specific products but iSuppli's estimate for the iPhone _ which doesn't include marketing or research and development costs _ falls in the ballpark of its iPod cousins that were similarly analyzed by the market research firm.
The iPhone's margin is much higher than some smart phones, like the Motorola Q, Pratt said, but he expects similar margins from the new crop of smart phones, which include Nokia Corp.'s N95 and HTC Corp.'s HTC Touch.
What this also fails to account for are the commissions paid to AT&T for each sale in one of their stores.

Still, a margin over 50 points is better than keystone pricing - if the sales estimates of anywhere up to 700K phones are real then that is a slew of positive cash flow. >$230,000,000 to give some notion of scale.
 
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sandgk;876681; said:
Still, a margin over 50 points is better than keystone pricing - if the sales estimates of anywhere up to 700K phones are real then that is a slew of positive cash flow. >$230,000,000 to give some notion of scale.
Apple wants to sell 10M in 1-year.

That'd be about 3.3 billion dollars!!!

drevil_million_dollars.jpg
 
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sandgk;876681; said:
How much does Apple make of each iPhone?

Lots!


What this also fails to account for are the commissions paid to AT&T for each sale in one of their stores.

Still, a margin over 50 points is better than keystone pricing - if the sales estimates of anywhere up to 700K phones are real then that is a slew of positive cash flow. >$230,000,000 to give some notion of scale.

I have been told that AT&T is reaping about $5 from each phone. They will make their money on the back-end (i.e. activation and monthly fees)
 
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Since June 30, there have been 102 postings on the New York Craigslist personals that mention the iPhone. Ranging from anal sex in exchange for an iPhone (give it to get it) to missed connections at the Genius bar, they make for a stunning display of humanity and its sad vulgar needs. There are poems and something about how Starbucks gave people iPhones but there was urine in the coffee? There are some clearly fake iPhone phone sex requests and apparently someone already dropped theirs down the toilet. There is of course some general douchiness. And so much more. Intern Mary breaks it all down for you in a handy pie graph.

iphonegraph.png



The iPhone On Craiglist: Sucking And Shopping - Gawker
 
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Nanos have a troubling reliability history.
Combine iPhone with a Nano is just begging for a disaster!
But, there is no doubt that the touch screen will become standard in the future. Buttons will disappear.
 
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