Sprint, which started taking iPhone orders on October 7, said it
would pay Apple a subsidy that is 40 percent higher, or $200 more
per device, than what it pays for other phones.
Chief Executive Officer Dan Hesse told analysts on a conference
call that the iPhone would be worth the extra cost as it has
already lured record numbers of new customers to Sprint.
I’ll bet that’s true for all iPhone carriers, not just Sprint. This is how Apple soaks up a majority share of the industry’s profits while only selling 3 percent or so of the total handsets.