Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Computing Digital Life Discovery Space More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Digital Life
Average Rating:
Rate this article:  
Apparently, AT&T Not So Bad Anymore: Churn at Less than 1%
Apparently, AT&T Not So Bad Anymore: Churn at Less than 1%

By Mark Long
July 24, 2012 2:38PM

Bookmark and Share
Some industry observers expected AT&T's iPhone sales to take a major hit in the quarter -- with subscribers postponing their purchasing decisions in anticipation of the arrival of the iPhone 5. However, Piper Jaffray believes that the release of Apple's next-generation handset will come in time to ensure that third-quarter results at AT&T won't be affected.
 



AT&T reported robust 18.8 percent wireless data revenue growth for the second quarter, including the carrier's lowest churn rate ever at less than 1 percent, and added 1.3 million new customers in the period.

"Record low churn and strong sales tell the story of our wireless business," AT&T CFO John Stephens told investors Tuesday. "New customers are choosing AT&T and existing ones continue to stay with us in record numbers. We have 88 percent of our subscribers on FamilyTalk or business plans."

AT&T's smartphone data revenue rose by $1 billion year-over-year to $6.4 billion. "Data revenues are now at a $25 billion annualized revenue stream, growing at almost 19 percent," Stephens said during Tuesday's conference call.

The wireless carrier sold 5.1 million smartphones during the second quarter -- including 3.7 million iPhones, of which about 22 percent represented customers new to AT&T. Moreover, smartphone subscribers overall currently account for 61.9 percent of AT&T's total postpaid base. "These are valuable customers generating revenue twice that of other [wireless] customers," said AT&T Senior Vice President Susan Johnson.

4G LTE Build Remains on Track

Piper Jaffray views AT&T's June quarter iPhone unit sales of 3.7 million as better than the investment firm's prior thinking on the U.S. markets.

"Between Verizon and AT&T, iPhone sales were down 15 percent sequentially, compared to our thinking of down 24 percent sequentially," noted Piper Jaffray analysts Gene Munster and Douglas Clinton.

Some industry observers expected AT&T's iPhone sales to take a major hit in the quarter -- with subscribers postponing their purchasing decisions in anticipation of the arrival of the iPhone 5. However, Piper Jaffray believes that the release of Apple's next-generation handset will come in time to ensure that the third-quarter results at AT&T and other carriers won't be affected.

"The iPhone 5 will likely have been released before Apple [and its carrier partners report] September results," Munster and Clinton wrote in a Tuesday investor note. "Our July survey found 94 percent of iPhone owners plan on buying another iPhone, suggesting the uptake of iPhone 5 will meet or exceed the high expectations."

Widely expected to include super-fast 4G LTE capabilities, the iPhone 5 should help drive the growth of AT&T's LTE networks rollouts. "Our 4G LTE build continues on track, and we now have LTE in 47 markets," Stephens said.

Expecting an Uptick

Credit Suisse Securities analyst Jonathan Chaplin noted that AT&T's smartphone sales this year are trending well below where they stood during the same period in 2011. But Stephens believes that AT&T's recently announced group plans for mobile devices will help boost the carrier's smartphone sales results going forward. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Digital Life
1.   'Like' Cheerios, Give Up Right To Sue
2.   Zynga Launches Mobile FarmVille
3.   Yahoo COO Gets $58M Parting Gift
4.   Teen Arrested for Heartbleed Hack
5.   Malware Targets Facebook Users


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
'Like' Cheerios, Give Up Right To Sue
General Mills policy forces arbitration.
Average Rating:
Yahoo COO Gets $58M Parting Gift
What was the company thinking?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug leaked will come at a very hefty price.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Google Releases Chrome Remote Desktop App for Android
You're out on a sales call, and use your Android mobile device to grab a file you have back at the office on your desktop. That's a bit easier now with Google's Chrome Remote Desktop app for Android.
 
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.