Apple’s iPhone has been a big hit for exclusive U.S. carrier AT&T — but it’s an expensive one.
In its annual report to the SEC (PDF), AT&T said selling, general, and administrative (SG&A) expenses increased $1.1 billion in 2007, up 10% year-over-year. About half of the jump — $572 million — was “due to increases in sales and advertising expenses and Apple iPhone-related costs.” We assume — but haven’t confirmed — that the number includes AT&T’s kickback/revenue share with Apple. That tariff may be as high as $15 per month, per subscriber. We’ll update if we get more information.
AT&T activated 2 million iPhones during 2007, which went on sale in late June, meaning about 3% of its 70 million subscribers are using Apple’s phone.
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