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: Out-of-patience investors sell off Amazon

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

Out-of-patience investors sell off Amazon

22 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0