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Alvin Leung
TechStratFin.com
Alvin [at] TechStratFin [dot] com
Copyright TechStratFin.com Version 0.5 – July 29, 2009

Copyright TechStratFin.com

iPhone’s Unit Sales to Date (000's)
iPhone 3G iPhone 3Gs
released introduced
iPhone
launched
6,892
5,208
4,363 3,793
2,315 1,703
1,119 717
270
Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209
To date more than 26M iPhones have been sold worldwide.
Copyright TechStratFin.com Source: Apple SEC filings

% of iPhones Activated on AT&T
iPhone iPhone 3Gs
iPhone 3G
launched introduced
released
72%
54% 51% 51%
50% 42% 43% 43% 43%
Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209
% of iPhones activated on AT&T this quarter
Despite its availability in 88 countries, AT&T’s continues to be the predominant network
home for iPhones; ~40% of all iPhones sold are activated on AT&T
Copyright TechStratFin.com Source: Apple SEC filings; AT&T earnings press releases

Copyright TechStratFin.com

AT&T Wireless Revenues & Operating Income
since iPhone’s Launch ($blns)
$13.2
$12.0 $12.6 $12.9 $12.9
$10.9 $11.4 $11.8
$10.4
$3.3 $3.2
$3.0 $3.1 $2.4 $2.7
$2.0 $1.9
$1.6
Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209
Operating Income
Since iPhone’s launch, AT&T has grown
wireless revenues and operating income, up 27% and 100% respectively…
Copyright TechStratFin.com Source: AT&T Investor Relations

New Customers added since iPhone launch
(000's, Q207‐Q109, excluding M&A)
AT&T from iPhone
Verizon
T‐Mobile
Sprint
‐5,000 ‐2,500 0 2,500 5,000 7,500 10,000 12,500 15,000
…and has led the 4 Major US Wireless Networks in Organically Acquiring New Customers
Source: AT&T, Verizon, T‐mobile, Sprint respective Investor Relations
Copyright TechStratFin.com

AT&T Net New Customers Added Breakdown of AT&T Net New
(000's, Q207‐Q209) Subscribers by Device
iPhone 3G
3,000 released
360
(est.)
2,500
2,000
342 760 12%
58 160 960 (est.)
36%
1,500 320 (est.) 52% 61%
(est.)
1,000 640 840
500
0
Q308 Q408 Q109 Q209
from iPhone from Other from iPhone
In past 12 months, iPhone has become the primary driver of new customer acquisition for
AT&T. Last quarter, 61% of all new AT&T customers purchased iPhones.
Copyright TechStratFin.com Source: AT&T Investor Relations

Change in AT&T Subscriber Base since
iPhone Launch (000’s, Q107 – Q209)
80,000 14% of AT&T
customers
75,000 are iPhone
Users
70,000
65,000
60,000
55,000
50,000
Customers as New from New from New from Converted to Customers as
of 07Q1 M&A Other iPhone iPhone of 09Q2
14% of all AT&T Wireless customers are now iPhone users
Copyright TechStratFin.com Source: AT&T Investor Relations

New Integrated Devices Growth in Mobile Data
added on AT&T Network Service Revenues
($mlns)
(Q207 – Q209)
4,000
iPhone
$1,224 $1,224 estimated1 to
3,000
(est.) (est.)
have added
$1.2B in data
Other iPhone service revenues
Devices 62% $1,070 per quarter
38%
2,000
1,000 $1,456
0
Data from from Data
Revenues Other iPhone Revenues
at Q207 devices at Q209
iPhone has led the sales of integrated devices at AT&T contributing to growth in Data
Service Revenues. However, analysis suggests data ARPU is lower on iPhone due to
aggressively priced iPhone Data service plans
Source: AT&T Investor Relations
1. Assumes incremental $40/mth in Data + Text service revenue / iPhone
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