Apple deal forces Comcast, Charter to sell thousands of devices - CNBC

Jun. 13, 2019 5:48 PM ETCHTR, CMCSA, AAPLBy: Jason Aycock, SA News Editor61 Comments
  • As part of their deal to carry iPhones, Charter (NASDAQ:CHTR) and Comcast (NASDAQ:CMCSA) are being forced by Apple (NASDAQ:AAPL) to sell large numbers of iPads and other devices, CNBC reports -- a move they have to accept in order to get the high-demand iPhone on their fledgling wireless offerings.
  • The two cablecos decided they couldn't offer a viable wireless competitor without the iPhone, which gave Apple heavy leverage in talks.
  • Comcast for example has to sell a certain number of iPads (in the thousands) at a subsidized cost and eat the price difference, an aspect that helped Apple when it was concerned about iPad sales, Alex Sherman reports.
  • Charter's deal is different: It sells Apple TV devices which can serve as set-tops for Charter service, and therefore it doesn't have the same subsidized sales requirement. But because of the deal, Charter has become the largest third-party seller of Apple TVs.

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