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AT&T Q2 Financials: Sold 2.4 Million iPhones… but Had to Pay for Them Upfront

Rédigé par Rene Ritchie le Jeudi 23 Juillet 2009 | Lu 118 fois



Apple’s exclusive US iPhone carrier, AT&T has announced their Q2 2009 financials, and when it comes to the iPhone, more is… well, more. 2.4 million iPhones activated during the quarter (Apple sold 5.2 million, so that obviously doesn’t include international or as-yet unactivated iPhones). 1.4 million new customers. 3.4 billion (with a b!) in data revenue. The downside? AT&T [...]

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Apple’s exclusive US iPhone carrier, AT&T has announced their Q2 2009 financials, and when it comes to the iPhone, more is… well, more.

  • 2.4 million iPhones activated during the quarter
  • (Apple sold 5.2 million, so that obviously doesn’t include international or as-yet unactivated iPhones).
  • 1.4 million new customers.
  • 3.4 billion (with a b!) in data revenue.

The downside? AT&T had to swallow those iPhone subsidies up front, leading in part to a 15% fall year over year:

“Increased operating expenses in the second quarter of 2009, in part, reflect volume-based acquisition costs associated with the success of the iPhone 3GS launch, which started June 19. AT&T’s iPhone customer characteristics are attractive, with (average revenue per user) significantly higher than and churn rates well below the company’s postpaid averages; as a result, robust iPhone demand drives strong recurring revenues and substantial long-term value. AT&T iPhone subscribers, both new customers and upgrades, take two-year contracts with data packages. As a result, robust iPhone demand drives strong recurring revenues and substantial long-term value.”

Translation: It cost them a few hundred bucks per user now, but those users are giving them back a hundred bucks a month for the next 24 months. Do. The. Math.

The big picture remains, however, that AT&T needs the iPhone to keep customers, get new customers, and earn big money off those high value customers.

[via Apple Insider]

This is a story by the iPhone Blog. This feed is sponsored by The iPhone Blog Store.

AT&T Q2 Financials: Sold 2.4 Million iPhones… but Had to Pay for Them Upfront




Source : http://feedproxy.google.com/~r/TheIphoneBlog/~3/Ks...

Tags : apple, iphone

              


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