AT&T Sells Too Many iPhones

That’s what the media is reporting this morning.  That’s what this economic crisis has done to our minds.  AT&T reported earnings this morning, and they apparently missed on the profit number because iPhone sales – which are subsidized – were substantially higher than expected, and the headlines of course focus on the miss.  Does the market really believe that selling fewer would have been better? Ah well, perhaps they will figure it out as the morning goes on.  Hmmmm…

Almost unnoticed by the media of course was AT&T’s good news in the wholesale space, where they saw continued growth across the board despite the macro economic situation.  IP and Data revenues continued to grow, although somewhat at the expense of legacy data services.  This bodes well for the results of other carriers over the next few weeks.  The press release didn’t mention much about the current economic environment and its effects, perhaps the conference call later this morning will be more informative.

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Categories: Financials · Internet Backbones · Wireless