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Thursday, 21 April 2011 - AT&T weathers loss of iPhone exclusivity |
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    Read more with google mobile : AT&T weathers loss of iPhone exclusivity |

    Edition: U.S. Article Comments (4) Technology Apple to ship new iPhone in September: sources Japan may cloud another stellar Apple quarter AT&T subscriber growth weakens, but beats Street Amazon to allow library lending of Kindle books Motorola pushes Bionic launch to summer RIM launches PlayBook but fans don't play along Governments struggle to recruit "cyber warriors" Obama takes tax plan to Facebook billionaires Word Lens app developer builds on social media buzz Live coverage: Apple Q1 earnings Follow Reuters Facebook Twitter RSS YouTube Read Apple to ship new iPhone in September: sources | 2:31pm EDT Five face murder charges after Florida teen's violent death 11:27am EDT Fox to punish leaks after "Glee" spoiler 12:45pm EDT UPDATE 5-AT&T weathers loss of iPhone exclusivity 12:44pm EDT Roommate indicted in Rutgers student suicide 1:58pm EDT Discussed 96 Palin returns with feisty, anti-establishment speech 46 Budget vote shows challenge for Boehner, Obama 41 Obama private comments show fight with Republicans Watched Cupless bra combats cleavage crinkle Fri, Apr 15 2011 VW unveils new sporty Beetle Mon, Apr 18 2011 German scientists develop thought-controlled car Tue, Apr 19 2011 SMALL BUSINESS Entrepreneur's Edge: Instant translation on your smartphone When Otavio Good released the first video of his Word Lens translation app in use, it became a viral phenomenon. Since then he's been busy recruiting programmers to help roll it out to include more languages beyond the original Spanish.  Full Article | Video  New app calculates calories through photos of food Common budget mistakes for tech startups AT&T weathers loss of iPhone exclusivity Tweet Share this By Sinead Carew NEW YORK (Reuters) - AT&T Inc survived the loss of its exclusive U.S. rights to sell the Apple Inc iPhone. The No. 2 U.S. mobile service provider, which is planning to buy T-Mobile USA, eked out a slight increase in subscribers... Email Print Related News US STOCKS-Wall St set to open higher, powered by profits 9:14am EDT WEEKAHEAD-The view from Reuters EMEA news editors Sun, Apr 17 2011 Related Topics Technology » Hot Stocks » Asian Markets » Media » Steve Jobs » Stocks     The at&t logo is seen at their store in Times Square in New York April 21, 2010. Credit: Reuters/Shannon Stapleton By Sinead Carew NEW YORK | Wed Apr 20, 2011 12:46pm EDT NEW YORK (Reuters) - AT&T Inc survived the loss of its exclusive U.S. rights to sell the Apple Inc iPhone. The No. 2 U.S. mobile service provider, which is planning to buy T-Mobile USA, eked out a slight increase in subscribers in the first quarter, surprising Wall Street, though some analysts said the growth came at too high a cost. Its net addition of 62,000 contract customers in the quarter was much weaker than its fourth-quarter growth of 400,000 but better than the loss of 83,000 customers expected, on average, by seven analysts polled by Reuters. The decline reflected the February 10 launch of the iPhone by Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc. AT&T, which reported results on Tuesday, also attributed some defections to changes in network technologies for some customers that resulted from its acquisition of Alltel assets and Centennial. But Wall Street analysts were impressed that it managed to keep customer defections in check as many feared the Verizon iPhone would send hordes of customers fleeing AT&T, which has been criticized for poor network performance. "It doesn't look like (Verizon Wireless) decimated AT&T as many people thought they might," said Piper Jaffray analyst Christopher Larsen. AT&T, which reduced the price of one iPhone model to $50 in the quarter, also noted that it still added 3.6 million new iPhones to its network in the quarter and that 23 percent of those customers switched from rival services. Anticipation of the Verizon Wireless iPhone appeared to cause a lull in January sales, Chief Financial Officer Rick Lindner said, but the February launch caused much less of a ripple among AT&T customers than the company had expected. "In February strangely we actually saw activity pick up and March was our strongest month in the quarter. We had good momentum leaving the quarter and going into the second quarter," Lindner told Reuters in a telephone interview. As a result Lindner said he expects an improvement in subscriber growth for the rest of the year. WEAK MARGINS But AT&T's efforts to retain subscribers appeared to come at a heavy cost to profitability. Its wireless service profit margin based on earnings before interest, taxes, depreciation and amortization dropped to 39 percent from 44.5 percent a year earlier. It also fell short of an estimate of 41.3 percent from Pacific Crest analyst Steve Clement. "This should put concerns on iPhone (subscribers) to rest for the time being, but the margins are still a concern," Clement said. 1 2 Next Technology Hot Stocks Asian Markets Media Steve Jobs Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (4) ahawkins629 wrote: so glad AT&T can make a profit in the billions while our country goes deeper into debt and our people suffer daily from wage cuts, job losses, home foreclosures and offshoring of jobs. Maybe AT&T should lower their rates and quit worrying about Wall St. and start worrying about the state of it’s customers. Apr 20, 2011 11:23am EDT  --  Report as abuse madampolo wrote: I wouldn’t celebrate too soon. I just bought a Verizon iPhone. I was waiting a bit before I did to see if they had any problems, and when they didn’t, I bought one. I love it. Let’s see what AT&T does in a year. Apr 20, 2011 1:29pm EDT  --  Report as abuse Shikari wrote: Verizon’s CDMA USA only network (with no SIM-card) and limitation of voice OR data stream makes their iphone offering a severe handicap. Moreover, their data plan costs are about as prohibitive as AT&T’s. I knew Verizon wasn’t going to change that landscape any time soon. All that speculation of “Wait till Verizon comes and scoops us away” were lame duck threats made by frustrated AT&T customers. Verizon wasn’t really going to be really any better, nor worth the change. Apr 20, 2011 1:56pm EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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