AT&T says it's connecting more devices

Jun 06, 2013 by Peter Svensson

AT&T says promotions are pulling in a large number of new phone customers, but the cost of subsidizing phones for them will hold back profits this year.

The nation's second-largest cellphone company expects to report that it added a net 500,000 new devices on contract-based plans during the April-June period. That would be the best second-quarter figure since 2010.

Since most Americans already have phones, the number of new-customers has been slipping across the industry. AT&T's tallies have been propped up by the addition of tablets, but these carry lower monthly fees than phones.

Dallas-based AT&T doesn't expect the influx of new customers to move the needle on overall sales this year. It said it still expects revenue to rise 2 percent in 2013, as margins decline.

Explore further: Android grabs 85% of smartphone market

not rated yet
add to favorites email to friend print save as pdf

Related Stories

AT&T loses contract phone subscribers in 1Q

Apr 23, 2013

AT&T Inc. says that it added a net 296,000 devices to its contract-based plans in the first quarter, but the gain was due entirely to tablets, which carry lower monthly fees.

T-Mobile gets rid of contracts for cellphones

Mar 25, 2013

(AP)—T-Mobile USA, the struggling No. 4 cellphone company, is ditching plans centered on familiar two-year contracts in favor of selling phones on installment plans.

AT&T sees fewer new customers in 3Q

Oct 24, 2012

(AP)—The flow of customers into AT&T's wireless stores slowed further in the latest quarter, putting the company far behind rival Verizon Wireless.

Verizon posts $2B 4Q loss on pension adjustment

Jan 24, 2012

(AP) -- Verizon paid dearly to put iPhones in the hands of subscribers in the latest quarter, holding back its profits in the hope that its customers will rack up higher monthly bills and stay loyal.

IPhone bills boost Verizon 1Q revenue growth

Apr 19, 2012

(AP) -- Holiday sales of the iPhone 4S started to boost revenue at Verizon Communications Inc. in the latest quarter, as subscribers settled in to paying their new monthly bills.

Recommended for you

Tesla loss widens as it ramps up expansion plan

4 hours ago

US electric automaker Tesla Motors reported Thursday a widening loss in the past quarter amid record revenues as it ramped up plans for a giant battery plant for future vehicles.

Android grabs 85% of smartphone market

18 hours ago

Smartphones powered by the Android operating system captured 85 percent of the worldwide market in the second quarter, threatening to marginalize rival platforms, a new survey shows.

Chinese man brings gay conversion therapy lawsuit

23 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

User comments : 0