Apple’s (AAPL) iPhone continues to do wonders for AT&T (T), its exclusive U.S. carrier.
AT&T said it activated 2.4 million iPhones during Q2, its best-ever total. Presumably, that includes some old, used phones that Apple didn’t ship last quarter. But assuming most of the iPhones activated were new ones, that’s about 45% of Apple’s 5.2 million June quarter total. (And it’s about 70% of all smartphones AT&T activated last quarter.)
While subsidizing the iPhone is costly for AT&T, it makes up for it with high-spending, low-churn customers — and, simultaneously, by keeping those customers away from its competitors like Verizon Wireless. To that point: AT&T reported a record low 1.09% postpaid churn, and record low 1.49% overall wireless churn.
AT&T says it added 1.4 million net new wireless subscribers last quarter, including 1.2 million postpaid subs, its best Q2 ever, and up 30% over postpaid growth in Q2 ’08.
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