iPhone boosts AT&T subscribers, shaving margins | iLounge News

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iPhone boosts AT&T subscribers, shaving margins

Reporting its second-quarter financial results today, AT&T revealed that the iPhone continues to be both a long-term boost and a modest short-term drag on the company. The exclusive U.S. iPhone carrier said it handled more than 2.4 million iPhone activations in the quarter, partly due to the iPhone 3GS launch, and increased its overall 3G smartphone subscriber based by more than 3.5 million. The large number of iPhone purchases also came with a cost in the form of subsidies, however, narrowing wireless operating margins to 23.8% during the period, down from 25.5% in the year-ago quarter; however, these subsidies are more than repaid during the two-year service contracts of subscribers. Overall, the company saw quarterly revenue of $30.7 billion, net income of $3.2 billion, and diluted earnings of $0.54 per share.

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Comments

1

OK, now that AT&T has made their $$$ from us, isn’t it time to start giving a little back? MMS activation? Free tethering? Gratitude & positive customer service?

Hey, AT&T: All these things would be nice.

Posted by Charles Starrett on July 23, 2009 at 11:33 AM (CDT)

1

@Justin22 Did you read the Article? AT&T’s net margins are slipping. Apple makes money in the last two months of a contract at best. If you subtract out time-value of money that takes it to only about $150 per Iphone contract. It’s apple that needs to lower the cost to AT&T.

Posted by Charles Starrett on July 23, 2009 at 11:38 AM (CDT)

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