AT&T 4th-quarter results weighed down by charges, record iPhone sales   Leave a comment

http://www.washingtonpost.com/business/industries/atandt-4th-quarter-results-weighed-down-by-charges-smartphone-activation-drive-up-revenue/2012/01/26/gIQAhJ1eSQ_story.html

With the loss of the rights to solely sell the Iphone last year, AT&T’s plan of attack was to push sales of  their other smartphones. However, probably as anticipated, AT&T’s business still relies heavily on the Iphone. In the fourth quarter of 2011, 80% of the smartphones AT&T activated were Iphones, which is slightly higher due to the release of the new Iphone 4s. However, most of the Iphones AT&T activated were for existing customers, not new subscribers, which is a category that Verizon is beating AT&T in significantly.

 

When reading this article, its hard to imagine another smartphone beating out the Iphone in sales. Iphones dominate the world of smartphones and in my opinion, being an owner of one, it would be hard to have any other phone than the Iphone. No matter how much AT&T pushes their other smartphones, unless you were handing them out for free, I don’t see people changing their minds about not getting an Iphone. I think their domination is here to stay. The real problem AT&T has is increasing the number of new subscribers they have because Verizon is beating them in that category. It makes sense because Verizon just got rights to the Iphone last year so it’s obvious they would have a lot of new subscribers because it’s a new phone for them, while AT&T has their old subscribers just updating to a new phone. AT&T can’t let this be a recurrent theme, they need to find ways not to push their other phones but rather compete with Verizon in terms of the Iphone with their prices, service, and offerings.

 

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Posted January 26, 2012 by annabellecunningham18 in Uncategorized

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