Despite iPhone, AT&T Profit Down
October 23, 2009 by Stephen Kersey
Filed under Business
Despite the massive popularity of Apple’s iPhone, AT&T, the iPhone’s exclusive carrier, posted a 1.2 percent drop in profits as revenue from traditional landlines fell faster than the company’s cost-cutting measures could go into effect. However, AT&T added a record number of iPhones into its network during this quarter.
In all, AT&T’s wireless subscriber base grew by 2 million during the third quarter to 81.6 million, including 3.2 million new activations of the Apple iPhone. This figure benefited from a price cut of the older versions of the iPhone and the June release of the upgraded iPhone 3G S, which boasts faster speed and more features than its counterparts.
AT&T’s grip on the smart phone market has allowed it to increase its average monthly bill for customers by 3.8 percent to $61.23 at a time when competitors have had to lower their monthly bills to stay even. According to AT&T, this quarter marks a record-high level of customers seeking data plans and spending on wireless data services.
iPhone (Image: Flickr)
