David Lentz

Is AT&T Paying Apple $3 A Month For Every iPhone Customer?

It should be noted that all this hullaballoo regarding iPhone revenue will be difficult to prove, in the absence of documents or statements from either AT&T or Apple as to what their financial arrangements are. The decision to treat iPhone revenue according to a subscription model means the income will be spread out over time in the reporting of it, and exact sources will be difficult, if not impossible to ascertain.

But the Apple's revenue should speak for itself, as they have many business segments that are robust and growing nicely, and the company does not long tolerate product lines that are not sufficiently profitable (e.g. -- the rumors of the Mac mini's impending demise).

While Apple's stock valuation may bubble over from time to time, the company itself seems to be in rock-solid shape, and capable of continued strong growth for as far as the eye can see.