AT&T & Apple to Split – Can’t Cry Over Spilt Milk

Mobile News

Maybe it’s me or someone at AT&T is not following the stock market. Apple profited $3.07 billion in Q2 selling 8.75 million iPhones, 131% more than the iPhones they sold this same time last year. By making bogus statements that the loss of Apple won’t affect income is truly amazing and ridiculous. Here is a recent statement by AT&T:

“We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,” Said an AT&T representative. In my opinion Apple is what has kept AT&T from being swept by Verizon. I think it’s in our best interest that AT&T succeeds because the last thing we need is another monopoly company.

AT&T has held exclusive rights to carry the Apple iPhone since 2007, increasing AT&T revenue and popularity greatly in my opinion. The company has now started carrying a variety of smartphones and advises that it will reduce its dependency on one carrier. AT&T also believes the loss of Apple wont affect them because many of AT&T customers are on family plans and it would be to much trouble to switch carriers, not to mention the convenient roll over minutes that so many would lose.

Due to the recent launch of the iPhone 4, it’s going to be hard for AT&T to see the repercussions of losing Apple do to all the new two year contracts. I’m expecting we will see a slow decline in AT&T users there after. Really it’s just a waiting game and only time will tell.