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$1.4 Billion iPhone Windfall New Service Revenues predicted for AT&T
Posted: 28-Jun-2007 [Source: Strategy Analytics]

[Strategy Analytics analysis indicates AT&T will see $1.4 Billion in new revenues as a result of its exclusive Apple iPhone deal. ]

Boston -- In "Will the iPhone Stop Global Warming," Strategy Analytics reports on its examination of the impact of the first three million iPhones projected for sales over the next three quarters by AT&T Mobility. This analysis indicates new revenues of $1.4 Billion will develop as a result of the exclusive iPhone deal at AT&T. "Cutting through all the hype surrounding the iPhone introduction, Strategy Analytics has explored the likely economics of iPhone use to assess the real impact of iPhone on AT&T revenues," said Harvey Cohen, President. "While it was clear that iPhone was not going to stop global warming, with all the hype, you might have expected an impact at least as great."

Using data supplied by its recently launched ProductTRAX and ChurnTRAX services, Strategy Analytics examined revenues (ARPU--Average Revenue per User) by device manufacturer, as well as the likelihood of churn at each operator. "With this timely information, we were able to develop assumptions on the likely incremental data revenues expected from current AT&T customers trading up to iPhone, plus the likely total revenue impact of customers churning to AT&T from other operators in order to get an iPhone," said Barry Gilbert, Vice President of TRAX Services. "As iPhone sales ramp up, we will be tracking revenue developments, iPhone user behavior, and churn effects. With all the uncertainties regarding the iPhone, this report evaluates the potential multi-billion dollar impact on AT&T revenues where the iPhone is expected to ramp upward from its first 3 million unit sales in early 2008."

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