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

Top Rated Comments

nt5672 Avatar
46 months ago
Things must be getting bad for Apple sales to force this.
Score: 20 Votes (Like | Disagree)
Baymowe335 Avatar
46 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
46 months ago
Love it! Apple dictating terms to the monopolistic cable companies. What goes around comes around!
Score: 7 Votes (Like | Disagree)
Krizoitz Avatar
46 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
46 months ago
I hope Apple made Comcast offer zero sign-on as part of the agreement.
Score: 4 Votes (Like | Disagree)
UnusedLoginID Avatar
46 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)

Popular Stories

maxresdefault

Can't Get an iPhone 14 Pro? Here's Why You Should Wait for the iPhone 15 Ultra

Monday December 5, 2022 11:44 am PST by
Due to production issues at Apple supplier factories in China, the iPhone 14 Pro and iPhone 14 Pro Max are backordered and basically out of stock at every store. If you were planning to gift or receive an iPhone 14 Pro model for the holidays and didn't already get one, you're basically out of luck because they're gone until late December. Subscribe to the MacRumors YouTube channel for more ...
Apple advanced security Advanced Data Protection screen Feature

FBI Calls End-to-End Encryption 'Deeply Concerning' as Privacy Groups Hail Apple's Advanced Data Protection as a Victory for Users

Thursday December 8, 2022 2:45 am PST by
Apple yesterday announced that end-to-end encryption is coming to even more sensitive types of iCloud data, including device backups, messages, photos, and more, meeting the longstanding demand of both users and privacy groups who have rallied for the company to take the significant step forward in user privacy. iCloud end-to-end encryption, or what Apple calls "Advanced Data Protection,"...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
maxresdefault

Hands-On With Apple Music Sing in iOS 16.2

Wednesday December 7, 2022 12:24 pm PST by
With the iOS 16.2 release candidate that came out today, Apple added the new Apple Music Sing feature that was announced earlier this week. We thought we'd check out the new karaoke feature to see how it works. Subscribe to the MacRumors YouTube channel for more videos. Apple Music Sing is available on modern iPhones and iPads, as well as the newest Apple TV 4K. It's built in to the Apple...
Apple car wheel icon feature yellow

Apple to Charge Under $100,000 for Apple Car, Launch Planned for 2026

Tuesday December 6, 2022 2:31 pm PST by
Apple is aiming to launch an Apple-branded consumer-oriented vehicle by 2026, and its goal is to hit a price point under $100,000 to make the car appeal to a wider range of customers, reports Bloomberg. Apple initially planned to design a car that might look similar to Canoo's Lifestyle Vehicle, where passengers could face one another in a limousine-style car with no steering wheel or...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Expected to Launch Next Week With These 12 New Features

Thursday December 8, 2022 7:05 am PST by
iOS 16.2 is expected to be released next week following nearly two months of beta testing. With last-minute additions like Apple Music Sing and Advanced Data Protection, the software update now has over a dozen new features for the iPhone. Below, we've recapped many of the new features coming with iOS 16.2, including Apple's new whiteboard app Freeform, two new Lock Screen widgets, the...
introducing apple music sing

Apple Music Adding a Karaoke Experience With Apple Music Sing

Tuesday December 6, 2022 7:09 am PST by
Apple today announced Apple Music Sing, a new feature in Apple Music that lets users sing their favorite songs with adjustable vocals and more. Apple Music Sing will utilize Apple Music's real-time lyrics to allow users to sing to their favorite songs using adjustable vocals, background vocals, and duet view to allow more than one singer.Apple Music Sing includes: Adjustable vocals: Users...
Twitter Feature

Twitter to Charge $11 Per Month for Twitter Blue on iPhone, $7 on Website

Wednesday December 7, 2022 6:47 pm PST by
Twitter plans to charge $11 per month for a Twitter Blue subscription on the iPhone in order to account for the 30 percent cut that Apple takes from in-app purchases, reports The Information. On the web, Twitter Blue will be priced at $7 per month. Prior to when Twitter Blue was paused, Twitter was charging $7.99 for a subscription, but the pricing will change before it relaunches. According ...
Apple advanced security Advanced Data Protection screen Feature

Apple Announces End-to-End Encryption Option for iCloud Photos, Notes, Backups, and More

Wednesday December 7, 2022 10:00 am PST by
Apple today announced it is expanding end-to-end encryption to many additional iCloud data categories on an opt-in basis for enhanced security. iCloud already protects 14 data categories using end-to-end encryption by default, including the Messages app when backups are disabled, passwords stored in iCloud Keychain, Health data, Apple Maps search history, Apple Card transactions, and more,...