iPhone Dings T's EPS By $.10

  • Posted: 23 October 2008 12:43 AM

    Here’s one early look at the economic power of the iPhone. The iPhone’s heavy subsidy cost AT&T $.10 per share in the September quarter.

    That subsidy (plus margin on the data service contracts) will be recouped over the two-year contract period. Still, that’s a big vote of confidence by a big company in the iPhone’s success.

    Why invest so heavily? During the same three-month period, residential land lines fell 10.5% YOY.

         
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    Posted: 23 October 2008 04:25 AM #1

    Re: iPhone Dings T’s EPS By $.10

    [quote author=“DawnTreader”]Here’s one early look at the economic power of the iPhone. The iPhone’s heavy subsidy cost AT&T $.10 per share in the September quarter.

    That subsidy (plus margin on the data service contracts) will be recouped over the two-year contract period. Still, that’s a big vote of confidence by a big company in the iPhone’s success.

    Why invest so heavily? During the same three-month period, residential land lines fell 10.5% YOY.

    That is the trend. I’m tempted to drop our landline, since we rarely use it. But my wife likes having the backup if cell phones/electricity goes out.

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    “Once we roared like lions for liberty; now we bleat like sheep for security! The solution for America’s problem is not in terms of big government, but it is in big men over whom nobody stands in control but God.”  ?Norman Vincent Peale

         
  • Posted: 23 October 2008 07:12 AM #2

    Re: iPhone Dings T’s EPS By $.10

    [quote author=“Play Ultimate”][quote author=“DawnTreader”]Here’s one early look at the economic power of the iPhone. The iPhone’s heavy subsidy cost AT&T $.10 per share in the September quarter.

    That subsidy (plus margin on the data service contracts) will be recouped over the two-year contract period. Still, that’s a big vote of confidence by a big company in the iPhone’s success.

    Why invest so heavily? During the same three-month period, residential land lines fell 10.5% YOY.

    That is the trend. I’m tempted to drop our landline, since we rarely use it. But my wife likes having the backup if cell phones/electricity goes out.

    Much of the loss in landlines is the move to wired phone services offered by cable companies, though eliminating landlines altogether is a big part of the mix.

    I’d eliminate my landline except its part of a packaged cable deal.

    The loss in landline revenue is pushing VZ and T into heated wireless competition. AT&T reports 40% of iPhone activations are to new wireless subscribers.

         
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    Posted: 23 October 2008 09:58 AM #3

    Re: iPhone Dings T’s EPS By $.10

    [quote author=“DawnTreader”]Much of the loss in landlines is the move to wired phone services offered by cable companies, though eliminating landlines altogether is a big part of the mix.


    You also have This which is internet plus VOIP for $50.  :wink:

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    “Once we roared like lions for liberty; now we bleat like sheep for security! The solution for America’s problem is not in terms of big government, but it is in big men over whom nobody stands in control but God.”  ?Norman Vincent Peale

         
  • Posted: 23 October 2008 12:37 PM #4

    ATT offers its mobile customers DSL for $35 month (6 Mbps), with no land line required. Dropping my land line and more expensive DSL from phone compnay was a no brainer. I prefer my iPhone’s custom ring tones to the land line’s irritating ring any day.