AT&T 1Q Profit Up 39% On Continued IPhone Strength |
| Wall Street Journal - Apr 20, 2011 |
Verizon Wireless's introduction of its iPhone did little to blunt demand for AT&T Inc.'s (T) version of the Apple Inc. (AAPL) smartphone.
AT&T reported a 39% jump in first-quarter profit, helped largely by the continued popularity of the iPhone. The company said that 3.6 million iPhones were activated in the quarter, with nearly a quarter coming from new customers, as the carrier avoided a mass exodus of iPhone customers to Verizon.
"We entered this quarter with some questions and uncertainty. Hopefully, we answered those questions," Chief Financial Officer Rick Lindner said during a conference call. He added the impact of the Verizon iPhone was less than even the company expected.
Yet the number of net new contract subscribers fell by nearly 90% from a year ago, reflecting the harsh reality that the explosive growth in the industry's most lucrative part of the business has largely dissipated. Instead, AT&T and its peers are looking to alternative devices such as tablets and e-readers for new sources of revenue.
Read Full Article from Wall Street Journal
- Posted: 2011-04-20 11:28:48
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