AT&T will have the exclusive privilege of selling the iPhone till 2010, thereby strengthening it’s hold on the Apple product.

If reports are to be believed for every iPhone sold, AT&T pays Apple approximately $300 which is reimbursed when a user signs up for an exclusive two year contract.

AT&T chief Randall says:

The iPhone has repositioned AT&T as the premier wireless brand in the world.

The mutual imperative of setting the iPhone 3G at $199 is beneficial for AT&t and Apple as well. Once a user purchases the device, he has to pay $100 on average monthly basis for a voice and data services. This is nearly double of what other subscribers pay.

CNET’s Don Reisinger says:

Apple’s decision to stay in this deal with AT&T not only makes me wonder if Steve Jobs is thinking clearly, but it also solidifies my belief that Apple has a little too much faith in its product.

It has to be seen whether this move made by Apple will further sales or prove the Achilles heel. As for now, it appears that the iPhone is a good revenue source for AT&T.