iPhone Boosts AT&T Earnings

AT&T announced a 5.5% profits increase for the third quarter, with wireless accounting for 40% of total revenue. Its exclusive iPhone deal is paying off, as AT&T reported it activated 2.4 million iPhones during Q3. (CNET)

AT&T also seems on track to reach 1 million subscribers to its U-verse broadband Internet and IP-based television service.

AT&T’s margins are hurt because it subsidizes 3G iPhones, but iPhone subscribers spend about 1.6 times more money, and use the mobile Internet more than other subscribers, which is key to AT&T’s long-term strategic goals.

Sources: (CNET, GigaOM, Silicon Alley Insider)

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