iPhone Sales Help AT&T Boost Profits

July 24, 2008 8:49 a.m. EST

Dallas, TX (AHN) -- Brisk sales of the updated iPhone are selling twice as fast as the original and that has resulted in a 30 percent profit increase for the second quarter for AT&T, the largest telephone carrier in the United States. Wireless sales jumped 16 percent to boost profits, AT&T announced Tuesday, even though its residential sales continue to lag. And that has boosted its net income to $3.77 billion or 63 cents a share. Total revenue shot up 4.7 percent to $30.9 billion. AT&T said the popularity of e-mail phones like the iPhone made by Apple Inc., and the BlackBerry, have pushed wireless sales into the third quarter and AT&T Chief Executive Officer Randall Stephenson is hoping the new iPhone will attract customers from Sprint Nextel Corp. and Verizon Wireless.

AT&T, the exclusive U.S. carrier of the iPhone, has added 1.33 million wireless customers. The new, faster iPhone, which debuted July 11, replaced the original, which Apple phased out in May. AT&T is selling the new phone at a loss for $199, but hoping to make up for it with two-year contract signings by customers. AT&T said it sold twice as many of the new version in the first 12 days compared to the original.