AT&T is reporting a boom in customer acquisition and, it seems, a bust in profits. According to a recent earnings report, the company activated 2.4 million iPhones but lost $900 million in third-quarter earnings as a result of all the data and voice blowing through Apple’s darling.
The iPhone, we see, is a double-edged sword. Because it goes out to early adopters and folks who understand mobile data, AT&T faces the same problems MVNOs like Helio faced in the U.S.: aim at heavy data users and get hit for data usage. While this is a testament to the majesty of Steve Jobs, it’s also a problem for AT&T. How can they keep making profits if they’re spending on their cash on network upgrades?
