AT&T's Love-Hate Relationship With the iPhone Continues

Let's face it: Telecom giant AT&T  both loves and hates Apple's iPhone.

True, the device is a clear draw to consumers. As we recently saw, AT&T informed investors it will set an all-time record for smartphone sales in its current quarter, and the iPhone was probably no small player in helping AT&T achieve this impressive feat, as we now know the new iPhones sold like hot cakes in their first weekend on the market.

However, investors weren't as enthusiastic about the news as one might expect and promptly sold the stock off. Why? Because while a blessing over the long term, heavily subsidized smartphones like the iPhone can be a curse to AT&T's margins in the short term. In the video below, Fool contributor Andrew Tonner discusses this peculiar scenario and how it should affect AT&T in greater detail.


The titans of tech
Apple's just one of five key players jockeying for position in the trillion-dollar mobile revolution. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article AT&T's Love-Hate Relationship With the iPhone Continues originally appeared on Fool.com.

Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonnerThe Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum