AT&T Piggybacks On The iPhone to Post Record Third Quater Earnings But Hints Might Lose Exclusive iPhone Deal

News | Tuesday October 20 2009 4:07 AM | Comments (0) Tags: , , , , , , , , , , ,

In the three months ending September, 4.3 million new connections were activated by AT&T. Of this 74% – 3.2 million connections were just iPhones! Of these 3.2 million iPhones, close to 40% were new customers confirming what all of us had guessed for a long time – AT&T would be close to dead without the iPhone .
On the revenue front, the total revenues for the quarter equalled $30.9 billion, down from $31.3 billion in Q3 2008. This meant a net income of $3.2 billion that remained unchanged from last year. The diluted EPS fell from $0.55 in the third quarter of last year to $0.54 this year. The revenues from wireless segment increased 8.2% in this period.
, AT&T has a lot of strategizing to do for the oncoming year. With speculations rife about the Apple -AT&T
, the number two wireless carrier in the US could have its work cut out should Apple decide to end its exclusivity with AT&T. That seems very likely considering that Apple has only recently ended carrier exclusivity in two other big iPhone markets –
.
In fact according to Macworld, AT&T Mobility CEO Ralph de la Vega hinted that they might lose the exclusive deal to sell Apple 's iPhone during the conference call with analysts. He said:
“We have a legacy of having a great portfolio…that will continue after the iPhone is no longer exclusive to us. We think we will continue after the iPhone …to drive [results]….”
“Even if we lose exclusivity [of the iPhone ], we will be the only carrier with HSPA 7.2 [a network specification being deployed at AT&T] and [new devices] will work on our network faster,” de la Vega said. “I feel as strongly as ever [about] the capability of devices in our lineup and [am] super-excited about the deals with e-readers and personal navigation devices.”
How do you see AT&T's results coming on the back of such a heavy iPhone influence? Could this reduce their negotiating power in future revenue-sharing discussions with Apple ? Do you think it would impact AT&T's revenues if Apple added new iPhone carriers? Please tell us your opinion in the comments.

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