With so many collaborators involved in the manufacture and marketing of Apple's iPhone, who is making the most profit from it?
iPhone is being marketed by AT&T through its data connection deal. So, essentially what would cost the consumer $500 now comes at $199. As a result, AT&T which is buying these phones at the marked price is shelling out the rest of the subsidy to Apple.
So, it seems that Apple is the one to gain. However, when we look at the extrapolations, AT&T will start making profits only in the 17th month of its 24 month contract. After which, by the end of the 24 months, the profits add up to $2 billion. This is way higher than what Apple will make in these 2 years - less than $1 billion.