Apple Requires Comcast and Charter to Sell iPads and Apple TVs as Part of iPhone Deal

As part of the deal allowing cable companies Comcast and Charter to sell iPhones for their respective mobile services, Apple has required them to also sell large numbers of other devices, reports CNBC.

Both Comcast and Charter have wireless services as part of an MVNO agreement with Verizon. Comcast offers Xfinity Mobile with approximately 1.5 million subscribers, while Charter offers Spectrum Mobile with approximately 300,000 subscribers.

comcastdiscount
The two cable companies wanted to be able to offer the iPhone in an effort to better compete with the four major carriers in the United States -- Sprint, Verizon, AT&T, and T-Mobile -- and as part of the deal allowing Comcast and Charter to sell iPhones, Apple made them agree to sell other devices too.

The ‌iPhone‌'s popularity made it impossible for Xfinity Mobile and Spectrum Mobile to compete without offering it, according to CNBC's sources, which meant Apple had "ample leverage" in deal negotiations.

Specific terms of the two deals are not known, but Comcast is required to sell a certain number of iPads, which CNBC says is in the thousands, at a subsidized cost. Comcast is required to pay the difference between the discounted price and the retail price.

Comcast offers the cellular 6th-generation iPad for $422.99, a discount from the standard $459 price. Comcast also sells cellular versions of the 10.5-inch iPad Pro, the 10.5-inch iPad Air, and the 7.9-inch iPad mini, all at discounted prices.

Subscribers are promised a $15 per month credit applied to their monthly statement for any ‌iPad‌ purchased.

Charter's deal is different and involves the Apple TV, which Charter offers as an alternative to a traditional cable box.

Charter sells Apple TVs at $7.50 per month for 24 months - or $180, the retail cost of an Apple TV. Alternatively, a customer can lease a Charter set-top box for $7.50 per month. In other words, Charter offers an Apple TV at the same price as a Charter set-top box, but a customer ends up owning the Apple TV and returning the Charter box. Charter has become the largest third-party seller of Apple TVs because of the agreement, two of the people said.

According to CNBC, there are benefits in these deals for Comcast and Charter beyond being able to offer the ‌iPhone‌. iPads and Apple Watches "enhance the value" of the Comcast wireless service, and the ‌Apple TV‌ offers a better navigation interface for Charter customers.

Many of Apple's carrier partners around the world also sell Apple devices other the ‌iPhone‌, much like Charter and Comcast.

Tag: Comcast

Popular Stories

Generic iOS 18 Feature Real Mock

Apple Shares Full List of Over 250 New Features and Changes Coming With iOS 18

Wednesday September 11, 2024 7:16 am PDT by
Following its iPhone 16 event on Monday, Apple shared a PDF on its website with a list of all new features and changes coming with iOS 18. The list includes many features that were already announced, including Apple Intelligence, new customization options for the Home Screen and Control Center, a redesigned Photos app, several enhancements to the Messages app, a Passwords app, and more....
iphone 16 pro pro max

First iPhone 16 Carrier Deals Include iPhone 16/16 Pro For Free, $1,000 Off iPhone 16 Pro Max

Monday September 9, 2024 3:18 pm PDT by
Apple today announced the latest lineup of iPhones, including the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. Pre-orders for these devices begin September 13, and if you plan on ordering from a cellular carrier in the United States, there will be plenty of options for discounts from the major carriers. AT&T is offering the iPhone 16 and iPhone 16 Pro at no cost with...
iphone 16 pro models 1

Skipping the iPhone 16 Pro? Here's What's Rumored for iPhone 17 Pro

Wednesday September 11, 2024 8:20 am PDT by
Will you be skipping the iPhone 16 Pro and waiting another year to upgrade? If so, we already have some iPhone 17 Pro rumors for you. Below, we recap key new features rumored for the iPhone 17 Pro models so far: 24MP front camera for all iPhone 17 models: All four iPhone 17 models will feature an upgraded 24-megapixel front-facing camera, according to Apple supply chain analysts Ming-Chi...
iphone 16 lineup colors

Apple Discontinues iPhone 15 Pro, iPhone 15 Pro Max and iPhone 13

Monday September 9, 2024 2:09 pm PDT by
With the launch of the new iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max, Apple has discontinued some of its older iPhones. As of today, Apple is no longer selling the iPhone 13, and the iPhone 15 Pro and iPhone 15 Pro Max have been replaced with the iPhone 16 Pro and iPhone 16 Pro Max. The iPhone SE remains as Apple's most affordable device, with the iPhone 14 and iPhone...
16 pro

Apple Announces iPhone 16 Pro and iPhone 16 Pro Max with Larger Displays, New Camera Control, and More

Monday September 9, 2024 11:13 am PDT by
Apple today announced the iPhone 16 Pro and iPhone 16 Pro Max—its latest flagship smartphones—featuring larger displays, an all-new Camera Control button, and the A18 Pro chip. The iPhone 16 Pro has a 6.3-inch display, while the iPhone 16 Pro Max features a 6.9-inch display—the biggest iPhone display ever. The borders around the display are the thinnest of any Apple device. The...
airpods pro 2 pink

Apple Releases New AirPods Pro 2 Firmware With Support for iOS 18 Features

Tuesday September 10, 2024 11:40 am PDT by
Apple today released a new firmware update for the AirPods Pro 2, including both the Lightning and USB-C versions. The firmware has a build number of 7A294, up from 6F8, and it is available for all AirPods Pro 2 users. Apple has been beta testing this update, but it is launching ahead of when iOS 18 becomes available next Monday. There are multiple features that Apple is adding to the...
maxresdefault

Everything Apple Announced at Today's Event in 13 Minutes

Monday September 9, 2024 6:02 pm PDT by
Apple today held the "It's Glowtime" fall event to debut new iPhone 16 models, a new version of the Apple Watch, new AirPods, and more. It took Apple more than an hour and a half to introduce the new devices, but we've recapped everything in a quick 13 minute video for our readers who want a short but detailed overview of what's new. Subscribe to the MacRumors YouTube channel for more videos. ...

Top Rated Comments

nt5672 Avatar
69 months ago
Things must be getting bad for Apple sales to force this.
Score: 20 Votes (Like | Disagree)
Baymowe335 Avatar
69 months ago
Things must be getting bad for Apple sales to force this.
Geez, can we stop with the always speculative doom and gloom nonsense?

This is normal business, just like pricing changes, promotions, etc. Welcome to Wallstreet where you consistently have to sell more stuff in the same period of time.

And guess what? Are Comcast and Charter American companies? Revenues in the Americas region hit all time records. Apple is NOT struggling in the US.

Almost all of their sales pressure has come from China. They still managed to put up $60B in PROFIT in 2018, or more than twice Google, as an example.

Apple is THE most profitable company in the world and doesn't need tips on sales execution. They are THE best at making money and this is just another way to do that.

Hate on though.
Score: 13 Votes (Like | Disagree)
JetTester Avatar
69 months ago
Love it! Apple dictating terms to the monopolistic cable companies. What goes around comes around!
Score: 7 Votes (Like | Disagree)
Krizoitz Avatar
69 months ago
I suspect that Comcast and Verizon may have a pretty good case if they wanted to take Apple out for illegal tying.
And I suspect you are not a lawyer.
Apple does not have a monopoly or a near monopoly on the smart phone market in the US. It doesn’t even have a majority. Therefore tying is not illegal, just a normal part of business negotiations, two sides trying to get the best deal they can.
[doublepost=1560486004][/doublepost]
Apple apparently just begging for an anti-trust action.
Nope, because they don’t even have a majority of smartphone sales in the IS, let alone a near monopoly. Nothing remotely anti-trust about this, standard business practice. See above.
[doublepost=1560486240][/doublepost]
This is exactly the business model. Another similar model is the one Qualcomm employed that caused Apple to file a complaint with the FTC.
No, the Qualcomm situation is completely different.
1. Qualcomm was demanding a cut of the entire device despite its patents not covering the majority of components
2. Qualcomm’s patents were standards based, i.e. they covered technology that all phones are REQUIRED to use and thus must be offered under specific pricing and use guidelines (FRAND) which Apple alleges that Qualcomm violated.

It had nothing to do with product tying.
Score: 5 Votes (Like | Disagree)
dwman Avatar
69 months ago
I hope Apple made Comcast offer zero sign-on as part of the agreement.
Score: 4 Votes (Like | Disagree)
UnusedLoginID Avatar
69 months ago
Love it! Apple dictating terms to the monopolistic cable companies. What goes around comes around!
Comcast and Charter are tiny carriers who don’t have their own infrastructure hence their agreement with Verizon. They’re in no way “monopolies”.
The agreement is purely around the cellular service, not around the Internet or TV part… which I agree make Comcast and Charter monopolies but Apple is not dictating anything to them in that regard.
Score: 4 Votes (Like | Disagree)