Feeds

iPhone juices AT&T profits

BlackBerry buoys Verizon

3 Big data security analytics techniques

AT&T today reported its earnings for both 2008's fourth quarter and the full year. Compared with 2007, there's good news and there's bad news - and the good news starred the iPhone.

First the bad. Fourth-quarter net income was down 23.3 per cent year-on-year, with $2.4bn in 2008 compared with $3.1bn in 2007.

Wired voice-service revenue also declined, down from $9.8bn in Q4 2007 to $8.8bn in Q4 2008 - a drop of 10.3 per cent.

AT&T logo

Now the good. Full-year net income was up. That critical bottom-line figure increased 7.7 per cent, from $11.95bn in 2007 to $12.87bn in 2008.

A major part of that increase was due to wireless revenue, which shot up 13.5 per cent, from $10.2bn in Q4 2007 to $11.5bn in Q4 2008. The company reported one million more wireless subscribers in Q4, resulting in a total of 77 million, an increase of 7 million in 2008.

And here's where the iPhone comes in. AT&T activated 4.3 million iPhones in the second half of 2008. Of those, 1.9 million were activated in the Meltdowny Q4. Although that may seem like a disappointing number for a holiday season, remember that the pent-up demand for the iPhone 3G spiked those Q3 numbers.

The iPhone was no doubt also a central reason for a 51.2 per cent growth in wireless-data revenues in Q4. According to AT&T's press release, "wireless integrated devices in service more than doubled over the past year."

The company's U-verse TV subscribers also grew, with the service now reaching 17 million "living units."

Living units.

The Wall Street guessmen may not be breaking open the bubbly, but they can't be too disappointed in AT&T's financials. The company's 64-cents- per-share earning missed analyst estimates by a penny.

AT&T's Chief Executive Randall Stephenson credits the iPhone with the company's relative success during the Meltdown. "The most important step that we took in 2008 was our iPhone 3G launch," he said, according to the AP.

But don't feel sorry for telecoms who don't have the iPhone to rely upon. As we reported yesterday, Verizon's financial statement revealed an increase in net income from $5.5bn in 2007 to $6.4bn in 2008, a bump of 16.4 per cent.

Even during the Q4 meltdown, Verizon's net income increased year-on-year from $1.1bn in Q4 2007 to $1.2bn in Q4 2008.

Sales of Verizon's BlackBerry Storm have been none-too shabby, either. Despite some early devastating reviews, Verizon now claims that they've sold one million of the iPhone competitors since their November 21 release - that early December software update seems to have helped. A lot.

Verizon reported that revenue from wireless data services increased 41.4 percent in Q4 2008 - a figure that, of course, doesn't include people fiddling with their new Storms in January, when sales of that smartphone reached the one-million mark.

The bottom line: Wireless voice and data services are bright spots in an otherwise gloomy time for tech companies. Revenues from wired-voice services, however, are falling - but that comes as no surprise. ®

How many of your friends no longer have land-line phones? Do you? And if so, how often do you use it compared with your mobile?

Thought so. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.