AT&T has released fourth quarter and 2008 results and it's not all roses for the telecommunications giant. Wireline telephone subscribers were down significantly, and AT&T has spent a bundle (US $453 million) upgrading the 3G network to serve the iPhone and their other Smartphone offerings. The bright spot for AT&T is the iPhone itself, which contributed to very positive gains in subscribers and revenue. Even with the boost from our favorite phone, AT&T profits fell to 64 cents a share in the fourth quarter compared to 71 cents one year ago.
Here are the interesting iPhone stats:
- AT&T activated 4.3 million iPhone 3Gs since it came on the market including 1.9 million in the fourth quarter alone. Those activations are more than double the number from a year before with the 2G iPhone
- iPhone owners provide about 60% higher revenue than other AT&T customers
- About 40% of fourth quarter activations of iPhones were customers that were new to AT&T. Most came from other carriers like Sprint, Verizon, etc.
- Customers who drop AT&T aren't usually those with iPhones (although many iPhone users would like to because of bad coverage or service).