Apple and AT&T Together, Not Forever

Though Apple Inc.’s iPhone has brought many customers to AT&T, currently the only provider of iPhones in the U.S., the company’s net income fell during the second quarter, reported PC World.

The company’s net income fell 15.2 percent compared to last year, reported PCWorld. Though AT&T had a net increase of 1.37 million new wireless users, the company’s landline voice services fell dramatically, reported PCWorld.

Randall Stephenson, AT&T CEO, said, “Our wireless momentum is excellent, operational execution and cost management continue to be strong. We continue to expand our all-IP AT&T U-verse platform to deliver broadband to more homes. We’ve increased our backbone capacity and continue to enhance our premier set of advanced global business solutions. These are AT&T’s strengths, and these are the drivers that will lead growth as the economy turns,” reported PC World.

Stephenson also said AT&T subsidizes the iPhone because it is seen as an investment opportunity, in which AT&T seeks to attract high-end customers, reported

Reuters reported that Commresearch analyst Gregory Lundberg estimated that AT&T saw 25 percent fewer new customers, when excluding iPhone sales.

Lundberg said, “Some of that’s seasonal, some of it is the market, but it really puts a magnifying glass on the risk of losing the iPhone exclusivity.”

AT&T’s exclusivity agreement with Apple Inc. is expected to expire next year, reported Reuters.


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