In my view it is all non-sense.. I think lot of customers are simply waiting for iPhone5. Samsung's Galaxy III turned out to be bummer and wasn't able to generate any new refresh cycles.
Nevertheless, ATT, should pour in some of these profits back and improve system health and call quality and poor coverage.. Otherwise whatever they do they won't be able to survive for long..
AT&T posts record profit for wireless
NEW YORK (AP) — AT&T on Tuesday posted the best profitability ever in its wireless arm, paradoxically because it sold fewer smartphones.The largest telecommunications company in the U.S. said its subscribers are now holding on to their phones longer: The rate of upgrades to new phones was at a record low in the second quarter. That’s good news for the company because it subsidizes each smartphone by hundreds of dollars to be able to sell it to customers for $99 or $199. iPhones, in particular, are expensive to sell, because Apple charges AT&T an average of about $650 apiece. In March last year, AT&T started telling subscribers they had to stay on contract for 20 months before they would be eligible for a new phone at the fully subsidized price. Before that, some high-paying customers had been eligible for upgrades after just 12 months.
“It appears our policy is working,” John Stephens, AT&T’s chief financial officer, told analysts on a conference call. He said another big contributor to the low upgrade rate was that many people upgraded late last year, when the latest iPhone debuted.
CX MATIASH/ASSOCIATED PRESS
A low rate of upgrades by smartphone users helped boost profit for AT&T’s wireless division.
Nevertheless, ATT, should pour in some of these profits back and improve system health and call quality and poor coverage.. Otherwise whatever they do they won't be able to survive for long..
AT&T posts record profit for wireless
NEW YORK (AP) — AT&T on Tuesday posted the best profitability ever in its wireless arm, paradoxically because it sold fewer smartphones.The largest telecommunications company in the U.S. said its subscribers are now holding on to their phones longer: The rate of upgrades to new phones was at a record low in the second quarter. That’s good news for the company because it subsidizes each smartphone by hundreds of dollars to be able to sell it to customers for $99 or $199. iPhones, in particular, are expensive to sell, because Apple charges AT&T an average of about $650 apiece. In March last year, AT&T started telling subscribers they had to stay on contract for 20 months before they would be eligible for a new phone at the fully subsidized price. Before that, some high-paying customers had been eligible for upgrades after just 12 months.
“It appears our policy is working,” John Stephens, AT&T’s chief financial officer, told analysts on a conference call. He said another big contributor to the low upgrade rate was that many people upgraded late last year, when the latest iPhone debuted.
CX MATIASH/ASSOCIATED PRESS
A low rate of upgrades by smartphone users helped boost profit for AT&T’s wireless division.
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