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AT&T has reported results for the second quarter and they show that the iPhone if propelling wireless revenue to almost half of the company’s total revenue.

iPhone 3GS sales netted 2.4 million activations.   35 percent of the 2.4 million iPhone activations were new to AT&T. The iPhone was responsible for about 60 percent of the company’s overall 1.4 million net subscriber increase for the quarter, and roughly half of net subscriber gains for the past year.

Average revenue per user topped out at over $60 per month and year-over-year wireless revenue increased nine percent. The churn rate for post paid subscribers is down to just 1.09 percent.

AT&T subsidizes as much as $400 of each iPhone sold. More and upgraded cell towers are necessary to handle iPhone users’ hunger for data.  Those two factors combined with continued wireline subscriber loss to drive net income down year-over-year from $3.8 billion to $3.2 billion—a 16 percent decrease.


Joel B. Rothman represents clients in intellectual property infringement litigation involving patents, trademarks, copyrights, trade secrets, defamation, trade libel, unfair competition, unfair and deceptive trade practices, and commercial matters. Joel’s litigation practice also includes significant focus on electronic discovery issues such as e-discovery management and motion practice relating to e-discovery.