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The iPhone is a massive customer magnet for AT&T

Don't underestimate the power of the iPhone to attract customers to AT&T's shoddy network.

Don't underestimate the power of the iPhone to attract customers to AT&T's shoddy network.

Have a read of this from today's earnings statement:

3.2 Million iPhone Activations. On June 24, AT&T began offering iPhone 4, the most powerful iPhone yet. Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27 percent of those activations were for customers who were new to AT&T.

The iPhone is now on it's fourth iteration, and it can still manage to pull in a whopping 27% fresh blood to AT&T, despite the bad press that the network has received.

It seems that AT&T can hold onto existing customers pretty well too:

Best-ever wireless churn levels, with 1.01 percent postpaid churn and 1.29 percent total churn

No wonder AT&T loves Apple.

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