Filed under: iPhone
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).


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Reader Comments (Page 1 of 2)
Neil said 5:10PM on 1-28-2009
Very true. I have an iPhone 3G and even though I love it and AT&T, sometimes I wish I could just throw it against the wall because of dropped calls or lack of 3G service that I pay $30 a month for... Even though I live in a 3G area I rarely have full 3G service.
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Raj said 2:17AM on 1-29-2009
The only thing I hate about my iPhone (other than the quibbles like lack of cut/paste, or video recording) is AT&T and their shit for network.
Having come from Verizon (even with a poor voice quality phone -Treo 600), I can say that I love the new phone/device, and hate the service.
colouroflight said 5:09PM on 1-28-2009
I give up with these greedy jackals at AT&T. $499 for a 16GB just because I'm uneligible is a complete con job, especially because it STILL requires a renewal of contract.
That said, I've tried every way around it and still want this damn phone, so I'm about to be suckered into paying it. Such is the power of Apple. But AT&T are low-life scoundrels.
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Kevlar said 6:10PM on 1-28-2009
Hah!
One Rogers store in Canada claimed that a 16Gb iPhone 3G for an in-eligible account was $3,000. No joke. He showed me the line entry in their computer.
I called a support tech and confirmed the price was supposed to be $700. Still extremely high, and completely unreasonable, but not to the point of insanity.
... I just paid for my friend, who had no interest in iPhones, to upgrade on his account, and trade the iPhone for my old Motorola.
Tim Irizarry said 6:50PM on 1-28-2009
um the iphone is $299 for the 16gb not $499
JKT said 12:19PM on 1-29-2009
@Tim: $299 is the subsidized price and not everyone is eligible for the subsidized price. I'm not sure what led them to be ineligible (Bad credit? Already an AT&T customer? They don't say) but $499 it is for such individuals.
F said 5:21PM on 1-28-2009
AT&T is the very reason why I DON'T have an iPhone. If it EVER comes to Verizon, I'll change my mind.
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SCY said 9:34PM on 1-28-2009
Thats wierd because if the iphone had been originally released for Verizon I would have passed
James said 5:26PM on 1-28-2009
You know, everyone complains about AT&T's 3G signal, but I can honestly say that I do not have any issue with it in the Metro-Detroit area. I get a great signal! 4 to 5 bars all of the time. Now, when I was visiting a buddy all the way across the country in West Hollywood, it was a different story. Piss poor signal.
My 2 cents, anyways.
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Jon said 5:33PM on 1-28-2009
Neil why don't you get a sensor booster for your vehicles windows. You really only need one sticker, and make sure you get the model that the military uses.
Additionally, you can get a booster for your cell phone or it's case. Slap it on and you will get a slight increase.
Keep in mind, if there is a ton of high RF or communication signals near your area then that will interfere with your 3G service. The only place where it is solidly regulated, filtered and present in full strength is at Airports, where gear is hardened against rogue signals/frequencies and your coverage is 5 star.
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LS said 7:13PM on 1-28-2009
No mention of the G1. If people are so unhappy with AT&T service, try T-Mobile and get a G1.
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Touchy said 6:38PM on 1-28-2009
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.
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oliver hart said 2:07AM on 1-29-2009
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.
colouroflight said 12:44PM on 1-29-2009
I'll buy it.
Drew Mcmanus said 8:07PM on 1-28-2009
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
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dan said 9:05PM on 1-28-2009
"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.
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zerock said 11:43PM on 1-28-2009
Ok at&t you love the iPhone, now where's my Official Tethering?
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fh4 said 9:30PM on 1-29-2009
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.
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Ironman195 said 9:31AM on 1-29-2009
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!!
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Chris said 11:17AM on 1-29-2009
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".
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