As part of their deal to carry iPhones, Charter and Comcast are being forced by Apple to sell large numbers of iPads and other devices, CNBC reports — a move they have to accept in order to get the high-demand iPhone on their fledgling wireless offerings.
The two cablecos decided they couldn’t offer a viable wireless competitor without the iPhone, which gave Apple heavy leverage in talks.
Comcast for example has to sell a certain number of iPads (in the thousands) at a subsidized cost and eat the price difference, an aspect that helped Apple when it was concerned about iPad sales, Alex Sherman reports.
Charter’s deal is different: It sells Apple TV devices which can serve as set-tops for Charter service, and therefore it doesn’t have the same subsidized sales requirement. But because of the deal, Charter has become the largest third-party seller of Apple TVs.―Seeking Alpha