"                     ?





       Alvin
Leung

    TechStratFin.com

Alvin
[at]
TechStratFin
[dot]
com


   Copyright
T...
Copyright
TechStratFin.com

iPhone’s
Unit
Sales
to
Date
(000's)

                                                  iPhone
3G

                 iPhone
...
%
of
iPhones
Activated
on
AT&T

          iPhone

                                                                        ...
Copyright
TechStratFin.com

AT&T
Wireless
Revenues
&
Operating
Income

                since
iPhone’s
Launch

($blns)

                               ...

New
Customers
added
since

iPhone

launch

                     (000's,
Q207‐Q109,
excluding
M&A)


                     ...
AT&T
Net
New
Customers
Added
                                            Breakdown
of
AT&T
Net
New

                 (000'...
Change
in
AT&T
Subscriber
Base
since


                  iPhone
Launch
(000’s,
Q107
–
Q209)



80,000
                    ...
New
Integrated
Devices
                          Growth
in
Mobile
Data

    added
on
AT&T
Network

                       ...
Copyright
TechStratFin.com

Copyright
TechStratFin.com

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AT&T [heart] iPhone? Understanding the Impact of the iPhone on AT&T

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Analysis of the AT&T and iPhone relationship.
Understanding of the effect iPhone has had on AT&T and vice versa

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  • AT&T [heart] iPhone? Understanding the Impact of the iPhone on AT&T

    1. 1. " ?
 Alvin
Leung
 TechStratFin.com
 Alvin
[at]
TechStratFin
[dot]
com
 Copyright
TechStratFin.com
 Version

0.5
–
July
29,
2009

    2. 2. Copyright
TechStratFin.com

    3. 3. 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

    4. 4. %
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 

    5. 5. Copyright
TechStratFin.com

    6. 6. 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 

    7. 7. 
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

    8. 8. 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 

    9. 9. 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 

    10. 10. 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
 
 Copyright
TechStratFin.com

    11. 11. Copyright
TechStratFin.com

    12. 12. Copyright
TechStratFin.com


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