AT&T recently announced that it has added 2.1 million net new customers during the second quarter of this year. Interestingly, almost all of the carrier’s new additions is attributed to strong sales of tablets, and to connected cars. As a matter of fact, AT&T has added one million new additions driven by tablets and connected cars in the period spanning April to June.
It appears that there is a visible shift in the makeup of AT&T’s subscriber base, with a significant part of the new customer additions spurred by tablets and connected devices. Also, it seems that traditional subscribers -- i.e. those that use phones -- may be on the decline, at least in AT&T’s case. It is also possible that such diminished growth from traditional phone customers for AT&T is connected to the increased pressure from competitors like Sprint and T-Mobile, who are only eager to usurp AT&T’s place as the second biggest wireless carrier in the United States.
Earlier in July, T-Mobile had announced that it had added 2.1 million customers during the second quarter of this year. And just a few days ago, Verizon Wireless had revealed that it had gained over 1 million net new customers, and 1.1 million post-paid subscribers.
As for AT&T, it had added 410,000 post-paid subscribers, however the growth entirely consisted of 600,000 tablets. In the second quarter of this year, the carrier had lost about 200,000 basic phone subscribers. Still, AT&T was able to add 331,000 prepaid customers as a result of boosting its prepaid arm Cricket Wireless.
A new focus for AT&T is in connected cars. The carrier is signing up with the largest number of automobile manufacturers in order to bring cellular connectivity to vehicles. But perhaps the more pressing question is -- will people actually pay extra money to connect their cars to a cellular network? The potential is there, but for now, it remains to be seen.
AT&T also managed to generate a profit in the amount of $3.04 billion, or $0.58 per share, during the second quarter of 2015. During the same period in the previous year, the carrier had a profit of $3.55 billion, or $0.68 per share. Not counting costs associated with its acquisition of two wireless carriers based in Mexico and its looming deal with DirecTV, AT&T managed $0.69 per share of adjusted earnings. Moreover, revenues increased 1.4 percent to $33 billion. As per data compiled by Yahoo, analysts predict, on average, revenue of $33.04 billion and earnings of $0.63 per share.
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