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

Apple iPhone 16e Feature

Apple Announces iPhone 16e With A18 Chip and Apple Intelligence, Pricing Starts at $599

Wednesday February 19, 2025 8:02 am PST by
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued. The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
iphone 17 pro asherdipps

iPhone 17 Pro Models Rumored to Feature Aluminum Frame Instead of Titanium Frame

Tuesday February 18, 2025 12:02 pm PST by
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models. In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
apple launch feb 2025 alt

Here Are the New Apple Products We're Still Expecting This Spring

Thursday February 20, 2025 5:06 am PST by
Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring. There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category. M4...
Generic iOS 18

Here's When Apple Will Release iOS 18.4

Wednesday February 19, 2025 11:38 am PST by
Following the launch of the iPhone 16e, Apple updated its iOS 18, iPadOS 18, and macOS Sequoia pages to give a narrower timeline on when the next updates are set to launch. All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
prioritize notifications ios 18 4

Everything New in iOS 18.4 Beta 1

Friday February 21, 2025 1:08 pm PST by
Apple finally released the first beta of iOS 18.4 to developers for testing purposes, and while the beta is lacking some of the Apple Intelligence features we were hoping for, there are some notable new additions. Subscribe to the MacRumors YouTube channel for more videos. Priority Notifications - Apple Intelligence There is a new Priority Notifications feature that can show you your most...
ios 18 4 ambient music

iOS 18.4 Adds New Ambient Music Feature

Friday February 21, 2025 11:06 am PST by
In iOS 18.4, there's a new Ambient Music option that can be added to Control Center. There are four different sound categories, including Sleep, Chill, Productivity, and Wellbeing. Each category can be added to Control Center separately, and tapping one plays a random selection of sounds or music from that particular category. You can't choose what's playing from Control Center, but if...
iPhone 16e Feature

Apple Denies Speculation Surrounding iPhone 16e's Lack of MagSafe

Friday February 21, 2025 8:01 am PST by
Apple has confirmed that its custom-designed C1 modem in the iPhone 16e has nothing to do with the device's lack of MagSafe support, according to Macworld. Following the launch of the iPhone 16e, there was some speculation online about how MagSafe magnets might have interfered with the C1 modem's cellular connectivity performance, and this was considered to be a potential reason for the...
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...

Top Rated Comments

nt5672 Avatar
74 months ago
Things must be getting bad for Apple sales to force this.
Score: 20 Votes (Like | Disagree)
Baymowe335 Avatar
74 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
74 months ago
Love it! Apple dictating terms to the monopolistic cable companies. What goes around comes around!
Score: 7 Votes (Like | Disagree)
Krizoitz Avatar
74 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
74 months ago
I hope Apple made Comcast offer zero sign-on as part of the agreement.
Score: 4 Votes (Like | Disagree)
UnusedLoginID Avatar
74 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)