AT&T still depending on iPhone for growth

By on July 23, 2009, 10:58 AM
AT&T has topped the expectations of analysts despite a 15% decrease in earnings in the second quarter. While the economy has seen better days, the carrier shipped enough of Apple’s iPhones to carry it through the quarter. Their dependence on the popular smartphone has brought concern to many analysts, as they wonder what would happen if AT&T lost its exclusivity contract.

AT&T activated over 2.4 million iPhones in the second quarter – more than a third of which were new customers. Gregory Lundberg, an analyst for Commresearch, figures that without the iPhone, the carrier would have seen a 25% decrease in new customers over the first quarter. AT&T said that the June 19 launch of the iPhone 3GS was the best sales day in the history of AT&T’s retail and online stores.

The company added 1.4 million net subscribers in the recently passed quarter, including 1.2 million monthly-billed customers. Analysts polled by Reuters predicted 1.08 million subscribers. AT&T scraped in a profit of $3.2 billion ($.54 per share), compared with $3.77 billion ($.63 per share) in the year ago quarter. This beats earning estimations of $.51 per share.

User Comments: 3

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realpoor said:

And you would think since they are depending on the Iphone for growth, they would get their act together and make it where the Iphone users are happy. I love my Iphone, but it's sad that the only carrier in the United States doesn't support all of its features.

9Nails, TechSpot Paladin, said:

Well, I for one, plan to abandon AT&T when my contract is set to expire later this year. Sprint has a cheaper plan and and the Palm Pre. Not only that, but Sprint has a Family Data plan that AT&T can't match. If these guys (AT&T) can't get me an affordable data plan that my whole family can use, then buh-bye AT&T. This $2K / year cash cow is heading towards greener pastures.

Guest said:

Yeah, good luck with actually gettting CONNECTED with Sprint... BUT, the comment about the features being inop is right on. WTF are they thinking??

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