AT&T to offer 'strong' iPhone 7 promotions in the fall, 'loading cannons' to fight T-Mobile


AT&T is bleeding profitable postpaid subs like there is no tomorrow. It lost no less than 363,000 of them in Q1 alone, and has been losing them for a few quarters already. The bulk of this churn went to T-Mobile, whose Uncarrier strategy is working brilliantly, as it added 877,000 postpaid subscribers last quarter, while Sprint's promotions gained it 22,000. Verizon's churn was negative, too, but at 8,000, it is far from the AT&T wreckage.

So, what's America's second largest carrier planning to do about it? Well, according to Nomura Securities, AT&T will be ā€œloading the cannonsā€ to fight back. The carrier is currently circling the wagons to defend its postpaid subscriber base, tips Nomura analyst Jeffrey Kvaal in a memo, which has been poached on by T-Mobile and others for a few consecutive quarters already.

AT&T is going all out, he mentions, and the "strong promotions" it is preparing will be including even the iPhone 7 in the fall - despite that Apple phones usually don't get much discounts, if at all. In addition, there will be plans that include AT&T's web TV streaming service, courtesy of the acquired DirecTV, tacking on its ultrapopular NFL Sunday ticket, too.

Still, AT&T is not that worried, or at least that's the face it puts in front of analysts. The carrier said that the postpaid subscribers it is losing to T-Mobile are usually in the low-tier of spenders, and the new promotions it preps, iPhone 7 included, will help stem the tide. The Nomura analyst seems to agree for now, as he forecasts that AT&T will add 550,000 postpaid subs in Q3, followed by about 510,000 in Q4, including tablet users.

source: IBD

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6 Comments

1. AlikMalix unregistered

Not sure if AT&T using iPhone to win over customers or Apple using AT&T to gain sales.

3. kanagadeepan

Posts: 1259; Member since: Jan 24, 2012

I have no doubt... Not difficult to guess..

2. WillieFDiaz

Posts: 127; Member since: Dec 22, 2010

AT&T had a monopoly on the iPhone for many years, without any decent promotions, and customers left in droves to other carriers the moment these carriers carried the device. AT&T cant "win" people back with DirectTV streams or an iPhone promotion anymore. People want large buckets of data, no overages, international roaming, free streaming of video as well as great iPhone/iPad bundles like 2 for 1 and $200 off iPad when you buy iPhones. Quite honestly, unless AT&T is willing to match T-Mobile, they likely aren't going to gain much from giving away iPhones on 24-30 month long AT&T Next plans even if they allowed yearly upgrades, because somewhere down the road, you gotta stay with them nearly 3 years. SCREW THAT.

4. XDAdam

Posts: 276; Member since: Feb 03, 2016

Too bad the iPhone7 is just gonna be a repackaged iPhone6. AT&T will have to give them away if they want new customers and a recycled phone.

5. Rocky1978

Posts: 41; Member since: Jul 09, 2014

It's not all about the IPHONE AT&T! It's about data, overages, iphones, android phones etc.....You act like iphone is going to be your saving grace. Heads up, not everybody cares about that boring piece of tech. They want deals on other phones like the new Note 6 (or 7) whenever it comes out. They want more and better tablets other than ipad all the time. They want loads of data and the ability to upgrade whenever they want. T-Mobile gives their customers ALL OF THIS AND THEN SOME. If you can't come up with anything better than this, you will find yourself in third place before long. T-Mobile is the future. You are the past. That is all.

6. MrTichy

Posts: 1; Member since: Jun 07, 2016

I cannot wait to ditch ATT when my contract expires in September. Yes, I have unlimited data but text messages are extra, no tethering, no international data, no roaming. I am getting nickel and dimed all the time. ATT finally went too far when they are now asking me to pay full price for my new phones on top of $40 per line activation fee. I might as well go to T-Mobile if I am paying full price for my phones.

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