AT&T profit beats estimates as Apple iPhone attracts customers

[*LTD*]

http://www.businessweek.com/news/20...projections-as-iphone-attracts-customers.html

AT&T profit beats estimates as Apple iPhone attracts customers
Wednesday, April 21, 2010

"AT&T Inc., the largest U.S. phone company, posted first-quarter profit that exceeded analysts’ projections after attracting wireless customers with devices like the iPhone," Amy Thomson reports for Bloomberg.

"AT&T said today that earnings were 59 cents a share, excluding costs tied to new U.S. health-care legislation. That beat the 55-cent average of estimates in a Bloomberg survey," Thomson reports. "The company, which offers Apple Inc.’s iPhone in the U.S., activated a net new 2.7 million devices last quarter."

Thomson reports, "AT&T’s exclusive hold on the device has helped the carrier keep customers, with turnover rates dropping to 1.3 percent... The iPhone is 'extremely important for them, which is a good and a bad thing,' said Chris King, a Baltimore-based analyst at Stifel Nicolaus & Co. 'It’s a good thing today because without it, they’d be sunk.' He advises investors to buy the shares.'"

 

[belvdr]

Good and bad, I agree. If the iPhone goes to other carriers, AT&T is in a world of hurt.

Frankly, AT&T is the reason I won't get an iPhone.

 

[*LTD*]

It's a hot-and-cold situation. One of the worst (allegedly, anyway) carriers has exclusive rights to the best smartphone out there. The gods must be laughing.

 

[kdarling]

Good thing they have the iPhone.

Apparently they had a net gain of 500,000 new contract customers partly because of 900,000 new iPhone owners.

Without the new iPhone owners, they could've had a net loss of contract customers.