The iPhone 3GS was launched June 19, selling a million phones over the weekend.
At their Worldwide Developers Conference in San Francisco, Apple announced the new iPhone 3GS, to be available June 19 exclusively on AT&T in the U.S.
Stock prices fell more than 3 percent as AT&T announced that it plans to cut 12,000 jobs and cut operating costs. Poor economic conditions are affecting AT&T, particularly its wireline business. The company predicts to cut spending by 10 to 15 percent; with 303,500 employees at the end of 3Q 2008, cutbacks will begin December 2008 and continue through 2009.
AT&T will open a super Internet Data Centre (IDC) in Singapore, which will act as a regional gateway to the internet and deliver AT&T Synaptic HostingSM, its next-generation utility computing services. This is part of AT&Ts $1 billion planned global network investment throughout the 38 data centres in its global internet Protocol (IP) network.
AT&T reported a 4% increase in revenue and 2 million new subscribers. The iPhone has driven much of these increases, however the subsidies on the margins were worse than expected. AT&T said margins were around 37% as opposed to 39-40% which was initially expected.