Skip to Content

AT&T loving the iPhone

AT&T has released fourth quarter and 2008 results and it's not all roses for the telecommunications giant. Wireline telephone subscribers were down significantly, and AT&T has spent a bundle (US $453 million) upgrading the 3G network to serve the iPhone and their other Smartphone offerings. The bright spot for AT&T is the iPhone itself, which contributed to very positive gains in subscribers and revenue. Even with the boost from our favorite phone, AT&T profits fell to 64 cents a share in the fourth quarter compared to 71 cents one year ago.

Here are the interesting iPhone stats:
  • AT&T activated 4.3 million iPhone 3Gs since it came on the market including 1.9 million in the fourth quarter alone. Those activations are more than double the number from a year before with the 2G iPhone
  • iPhone owners provide about 60% higher revenue than other AT&T customers
  • About 40% of fourth quarter activations of iPhones were customers that were new to AT&T. Most came from other carriers like Sprint, Verizon, etc.
  • Customers who drop AT&T aren't usually those with iPhones (although many iPhone users would like to because of bad coverage or service).
For just about anyone selling anything, the fourth quarter of last year was dreadful. The iPhone was not exempt from this trend. Activations were down 21% comparing the fourth quarter to the third quarter of 2008, but the iPhone still clobbered the Blackberry Storm.







Categories

iPhone

AT&T has released fourth quarter and 2008 results and it's not all roses for the telecommunications giant. Wireline telephone...
 

Add a Comment

*0 / 3000 Character Maximum

22 Comments

Filter by:
billy

My wife and I GLADLY gave up the phone aspect of the iPhone to get rid of AT&T. We now treat it as an iPod touch and keep a walmart pay-as-you-go Verizon phone to place phone calls, which are free between the two of us since we're both on Verizon.

I don't care what phone AT&T carries, I'll never do business with them again.

January 30 2009 at 8:24 PM Report abuse rate up rate down Reply
cerement

Add another vote to the whole: "I desperately want an iPhone, but I'm not going anywhere near one as long as AT&T is the service provider." ...

January 29 2009 at 9:44 PM Report abuse rate up rate down Reply
Chris

I don't think there is any such thing as the "iPhone 2G"... It's either the first generation, or iPhone Edge... a 2G iPhone was never made... unless you're referring to the 2nd generation, "iPhone 3G".

January 29 2009 at 10:42 AM Report abuse rate up rate down Reply
Ironman195

I just wish at&t would work on their network. I see the 'No Service' text more than I see any bars! This happens in several places in Indianapolis. Not on the outskirts, but inside neighborhoods in the city. If I do get a bar or two and actually succeed in making a call, 90% of my calls are dropped. This is the worst phone service I have ever had. I love my iphone, but I wish Apple would have chosen someone like Verizon. I beleive that if Apple chose a company other than at&t, that at&t would be in serious danger.

Apple, if you are listening, please save us from at&t!!

January 29 2009 at 9:31 AM Report abuse rate up rate down Reply
fh4

AT&T is abysmal. I never had coverage as poor as I do now. Not too crazy about the iphone either. I've been using apple products since '88 & think the iphone is a real leap foward in tech evolution.

That being said, I miss my blackberry. iphone apps seems geared more to frivolous hipsters than productivity.

January 29 2009 at 6:32 AM Report abuse rate up rate down Reply
zerock

Ok at&t you love the iPhone, now where's my Official Tethering?

January 28 2009 at 11:43 PM Report abuse rate up rate down Reply
dan

"Customers who drop AT&T aren't usually those with iPhones" - well, duh. The iPhones been out like 19 months and 95+% are tied down with 24-month contracts. Churn will happen when those contracts expire.

January 28 2009 at 9:03 PM Report abuse rate up rate down Reply
Drew McManus

Now if AT&T could just fix the terrible user experience using MMS on the iPhone in the US. I make the case here: http://blog.mcmanus-family.com/2008/09/the-case-for-mms-on-the-iphone.html

January 28 2009 at 8:03 PM Report abuse rate up rate down Reply
Touchy

I just yesterday canceled my iphone. The device itself is gold and I'll miss many of the features and apps. However, I was paying ATT $40 for 450 minutes of which I only use 250 tops per month. $5 for 200 text messages which is the worst rate of any of the majors. US Cellular offers free incoming,Verizon has unlimited V2V texting plus 250 additional and for $5 Sprint will give you 300 messages. As for data,I'm paying $30 for 3G data I do not get and I was only using 50-100MB's a month since I have wifi at home and at work. I had the bare minimum ATT offers and my bill was $80. Considering my mild cellular needs it was a very costly toy in a time when such expenses are not wise. I've moved to a $25/mo tracfone and an ipod nano. Yeah,it sucks but it was the right thing to do. ATT needs to introduce a base tier of plans for me to ever consider going back for an iphone.

January 28 2009 at 6:37 PM Report abuse rate up rate down Reply
2 replies to Touchy's comment
oliver hart

Hack it. I have an iPhone 3G, 600 minutes $39.99, unlimited text $10, and unlimited Internet for $5.99 via tmobile. Grand total (give or take taxes/surcharges) $57 a month. Granted my iPhone doesn't have 3G on tmobile, but it's still awesome. No dropped calls, great customer service (they know I have an iPhone and don't care) and all the money left over to bail my kids out of trouble. Just like the Kennedy's.

January 29 2009 at 2:07 AM Report abuse rate up rate down Reply
colouroflight

I'll buy it.

January 29 2009 at 12:44 PM Report abuse rate up rate down Reply
LS

No mention of the G1. If people are so unhappy with AT&T service, try T-Mobile and get a G1.

January 28 2009 at 6:14 PM Report abuse rate up rate down Reply
Buy an ad here

Hot Apps on TUAW

Tweets

© 2012 AOL Inc. All Rights Reserved.