The company earned $3.1 billion in the first quarter, a little down from last year, but “a little down” is the new up. There was heavy contribution from IPhone sales, which the company basically subsidizes. Why does it do that? Emory Kale at TG Daily has the answer:
About three quarters of AT&T’s new customers chose the iPhone, for which AT&T is the exclusive U.S. carrier. While the iPhone is an expensive bauble in the corporate pie for AT&T…it gets the benefit of the significant increase in subscriber fees that iPhone users bring, 60% more than other customers.