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iPhone 3G Boosts AT&T Earnings

Wednesday October 22, 2008 6:15 am PDT by longofest
AT&T today posted their 3Q earnings with strong wireless division gains lead by 2.4 million iPhone 3G activations in the quarter, 40% of which were new AT&T subscribers. Adjusted earnings dipped slightly due to the subsidies placed on the iPhone 3G and hurricane related expenses.

AT&T highly values iPhone and other smartphone subscribers due to their lucrative data plans that have "significantly higher [average revenue per user] and lower churn than postpaid subscriber average."

Yesterday Apple reported that they had sold the 10 millionth iPhone last quarter. This beat Apple's self-imposed goal of reaching this milestone by the end of calendar year 2008.
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Buschmaster
47 months ago
I wonder what the relation is between "significantly higher revenue" and what the profit is.
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Mykbibby
47 months ago
Amazing. I bet Verizon is shooting themselves for not taking the iPhone.

All because they wanted to put software on the phones, and sell it at other retailers...
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supmango
47 months ago
Good, this is expected. Now ATT FIX YOUR D$#@ NETWORK ISSUES SO WE CAN ACUTALLY USE IT!!!!!!!!!!!!
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koala
47 months ago

Yesterday Apple reported that they had sold the 10 millionth iPhone last quarter. This beat Apple's self-imposed goal of reaching this milestone by the end of calendar year 2008.


Man, I'll be happy when 2008 is over so that news articles and bloggers can stop getting the facts on this wrong.

Apple did sell the 10 millionth iPhone last quarter, but that had nothing to do with anything.

Apple set a goal of selling 10 million iPhones during this calendar year, and they achieved that this quarter (i.e., sometime in October).
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flottenheimer
47 months ago
Wonder what Apples iPhone salesgoal will be next year... 15 million?... 20 million?...
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koala
47 months ago

Wonder what Apples iPhone salesgoal will be next year... 15 million?... 20 million?...


I think one analyst (Munster?) speculated a few weeks ago that Apple would sell 45 million next year. Eye-popping numbers indeed.
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BigTRQ
47 months ago

Amazing. I bet Verizon is shooting themselves for not taking the iPhone.

All because they wanted to put software on the phones, and sell it at other retailers...

QFT! Every time an iPhone goal is reached, I want to reach out and hammer Denny Stringl on the damned head. He should have seen that Apple was up and coming in the mobile device market and how well their products sold in general. I totally agree that VZW is all about putting their software on EVERYTHING they offer to make sure that you can buy, buy, buy from their crappy ringtone, game, and productivity markets.

What I've always wondered is, is, did AT&T take the iPhone at face value, or did they take it only because VZW said no?
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edenwaith
47 months ago
Well, that isn't from any extra money that AT&T filched from me, certainly. They wouldn't even sell me an iPhone 3G when it came out, so that is several hundred dollars that didn't go into their pockets. I went and purchased an iPod touch instead.

Perhaps if a 32GB version of the iPhone comes out I'll reconsider, but until then...
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Doctor Q
47 months ago
Yes, being locked into one provider does reduce churn. If I eventually get a choice, I'll make a choice.
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saturniphone
47 months ago
I wonder how many of those who switched to AT&T to get the iPhone would switch back to Verizon if/when it's offered on their network. Under equal pricing schemes I would most assuredly be with Verizon.
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