iPhone boosts AT&T earnings
The third quarter results are in and it seems that things are looking rosy for American telecoms outfit, thanks largely to its exclusive contract to sell the iPhone 3G.
The company launched the phone on 11 July.
It now claims that it activated a whooping 2.4 million iPhone 3G devices in this past quarter, but most importantly, approximately 40% of these were for wireless customers who were new to AT&T.
Overall, the company gained 2 million wireless subscribers to bring its total to 74.9 million in service.
The biggest boom was in retail postpaid wireless subscribers, where the company gained 1.7 million subscribers, which was up nearly 40% compared to the third quarter of 2007 and is the largest total for any quarter in AT&T's history .
"I am particularly pleased with the customer response to the iPhone 3G", said Randall Stephenson, AT&T chairman and chief executive officer.
"The new customers we're winning are high-value, with attractive revenue and churn profiles. We're expanding the market, as users adopt more data and media-rich services and access a wide array of applications. These achievements are positive for the future of our business."
"Across our operations, AT&T continues to execute and deliver solid results. In wireless, we posted a record postpaid subscriber gain. Trends in business services continue to be stable, with a major turnaround in wholesale revenue growth. AT&T U-verse video gains continue to accelerate, helping transform our consumer business."
"There are a number of things that set AT&T apart. Our company has premier assets, a sound balance sheet, solid cash flow and an excellent record of returning value to shareowners. These fundamentals, combined with an intense focus on execution, provide a solid foundation for AT&T's future."