WHAT'S NEXT: INNOVATIONS IN NEWSPAPERS

By Nico - Feb 12, 2010 | Leave a reply

I really like the picture,but it seems to be wrong.
Apple manufactures 1 iPhone. A customer has two options:
1: He buys the iPhone without a contract and pays a fee of 599$. Apple gets 599$ over and out!
2: He buys the iPhone with an At$t carrier contract and pays 199$ + a monthly payment of 30$ (24 x 30$ = 720$) = 919$.
So the figures on this picture are mixed up in the wrong way! The guy on the left hand side has to pay 599$, because he bought the iPhone without a contract. …
The blue subsudy or extra fee line is totally wrong! At&t doesn’t pay an extra fee or subsidy of 351$ to Apple. Apple sells the iPhone for 550$ (within this picture) to At&t over and out!
So if a customer decides to take the At&t option the customer has to pay 199$ up-front to At&t + a monthly fee of 30$ (or whatever monthly plan he decided to take). The monthly payment from the customer to At&t is totally missing.
You should draw the picture in a 2 level design.
Level 1:
Left hand side a customer who pays 599$ for the iPhone.
In the middle you should place Apple. They earn 599$ for this sold iPhone and have to pay 179$ to their right hand side located manufacturers.
Level 2:
A cursor up to At&t, which pay 351$ for an iPhone to Apple, which should be coloured in another way. Another customer should be drawn on top of the original customer on Level 1 (named the At&t option). This customer pays 199$ to Apple (so Apple earns 351 from At&t + 199 $ from the customer = 550$). But this customer has a contract with At$t. So you should link this customer to At&t with his monthly payment of 30$ (or whatever plan he decides to take).
This at&t option does not affect the payment of 179$ from Apple to their manufacturers.
As someone who wants to buy an iPhone you have two options (with or without an At&t contract), and your picture should obtain these two options. So just think about updating your pic.