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AT&T Reafirms Financial Guidance as Lowers Cost of Older iPhone

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Note -- this news article is more than a year old.

US based AT&T announced that it will start selling the new iPhone from 19th June for $199 (16GB) and $299 (32GB) with the older iPhone 3G starting at $99 (8GB) from today. All sales will be subject to a 2 year contract.

AT&T also reaffirmed its financial guidance for 2009 that targets wireless service OIBDA (operating income before depreciation and amortization) margins in the low 40% range. AT&T's cost of customer acquisition for iPhone 3G S and the newly priced iPhone 3G are expected to be very similar to the costs associated with the original iPhone 3G.

AT&T customers with integrated devices like iPhone 3G and iPhone 3G S offer attractive ARPU's (average monthly revenues per subscriber) and low churn rates. In the first quarter, AT&T's iPhone activations totaled more than 1.6 million, more than 40 percent of them for customers who were new to the company.

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