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AT&T Resumes Online IPhone Orders in New York City

Updated:2009/12/29 13:50

AT&T Inc. allowed customers in the New York region to buy iPhones on its Web site again after earlier blocking online purchases.

Bloomberg made several successful attempts to order the phone on the Dallas-based company’s site. AT&T spokesman Fletcher Cook had no comment beyond an earlier statement that “we periodically modify our promotions and distribution channels.”

AT&T depended on the device to help it add 1.4 million contract customers last quarter. Online customers account for an estimated 10 percent to 15 percent of AT&T’s sales, Nielsen Co. analyst Roger Entner said in an interview. Customer-satisfaction ratings place AT&T last among the top four U.S. carriers in a Consumer Reports survey released earlier this month.

Apple spokeswoman Natalie Kerris didn’t return calls or e- mail messages seeking comment.

Strains on AT&T’s infrastructure from mobile phones with advanced features led wireless chief Ralph de la Vega to call New York coverage unsatisfactory, and prompted upgrades to the network.

Still, it’s unlikely that AT&T would stop online sales to cope with heavy traffic, Chandan Sarkar, a New York-based analyst at Auriga Securities, said in an interview. Web sales make up a “very small percentage” of iPhone sales, he said.

“It seems surprising to me that they would actually try and cut off online sales,” said Sarkar, who doesn’t own AT&T shares and advises investors to hold the stock. “They’re trying to sign up as many data customers as they can.”

AT&T rose 23 cents to $28.33 at 4 p.m. in New York Stock Exchange composite trading. The shares are little changed this year. Cupertino, California-based Apple gained $2.57 to $211.61 on the Nasdaq Stock Market, and has more than doubled this year.

 source:bloomberg

 Source:source:bloomberg
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