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AT&T Posts 5.5 Percent Increase in Revenue with iPhone’s HelpSubmitted by lalit on October 22, 2008 - 7:53pm.
Yesterday, Apple announced that the iPhone sales surpassed BlackBerry and Apple is now the 3rd largest mobile phone maker based on the revenue. AT&T is definitely cashing on iPhone popularity; the company announced it net income was $3.23 billion up from $3.06 billion in the same period a year earlier. AT&T activated 2.4 million iPhone accounts and 40 percent of those accounts were for new AT&T customers. That means that around 0.96 million users who bought iPhone were new to AT&T. Overall AT&T added 2 million new subscribers, so basically 50 percent of the new subscribers joined AT&T because of the iPhone 3G. The company also reported 50.5 percent increase in wireless data revenue from Internet access, messaging, e-mail and other related services, total wireless revenue was up 15.4 percent. The best part for AT&T was that even though it was adding record number of new subscribers, the churn rate – the percentage of customers switching to a rival carrier, dropped to 1.2 percent compared with 1.3 percent in the previous quarter. AT&T’s CEO Randall Stephenson said, “I am particularly pleased with the customers response to the iPhone 3G. The new customers we’re winning are high-value, with attractive revenue and churn profiles.” AT&T’s iPhone sales figures also show that Apple sold 2.4 million iPhones out of 6.9 million sold this quarter in US. Meaning, Apple sold 4.5 million iPhones overseas, that’s over 65 percent of the total iPhones sold. Showing that iPhone 3G not only had an excellent start in US, but also around the world.
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