Apple's iPhone Price Cuts Aiding Sales: AT&T
Recent price cuts to Apple's iPhone device has spurred uptake of the product, AT&T's regional telecommunications and entertainment group president told investors and analysts Wednesday.
While speaking to attendees at Goldman Sachs' 2007 Communcacopia Conference, AT&T group president Ralph de la Vega said that since the price of the 8-gigabyte iPhone model was cut by $200 to $399, it has seen "significant uptake" that he expects to continue.
The cuts, which were announced by Apple on Sept. 5, angered some early adopters of the product who did not expect its price to come down so quickly after its late-June release.
Shares of AT&T rose more than 2 percent Wednesday.
De la Vega added that the price cuts will fuel the iPhone's holiday season sales.
"I think he wants to be more aggressive for the holiday season," de la Vega said, referring to Apple chief executive Steve Jobs.
He conceded Jobs caused "a bit of a stir" by lowering the product's price, but said that is settling down now.
Generally, where price reductions are concerned, "I think that typically we would have waited longer, getting closer to the holiday season," he said.