AT&T says it's connecting more devices

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.


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Citation: AT&T says it's connecting more devices (2013, June 6) retrieved 19 September 2019 from https://phys.org/news/2013-06-att-devices.html
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