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. Click for more information, or
Home Computing Digital Life Discovery Space More Topics...
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

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

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:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Digital Life
1.   Apple Stock Soars Ahead of iPhone 6
2.   Twitter May Remove Pics of Deceased
3.   Popular Mailbox App Comes to Mac
4.   HTC One M8 Windows Phone Unveiled
5.   Verizon Tops in Mobile Networks


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Sprint Dumps T-Mobile Merger
Looks to the future with new chief exec.
Average Rating:
New App To Manage Time Better
Helping to organize your busy life.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Cost of Target Data Breach: $148 Million
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 

Enterprise Hardware Spotlight
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 

Mobile Technology Spotlight
Apple Stock Soars Ahead of iPhone 6 Launch
The imminent release of the iPhone 6 -- and maybe even an iWatch -- has sent Apple's stock soaring to new heights. Considering what else the firm could have up its sleeve -- the stratosphere may be the limit.
 
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 

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

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.