AT&T research

Mobile companies have increased the amount of money they have had in previous years. One of the companies that did the most growing in the past 10 years both in cell phones and in house phones. Most of us are aware that AT&T began its expenditure by buying what used to be Cingular and from there on the rise was evident. Before the recession hit AT&T and the whole United States for that matter their stock was at 124 million before the recession hit. Amazingly well for a communications company for they reported earnings per share grew 11.3 percent to $2.96 per share. Money was falling from the sky during this time.

After their amazing year for 2008 AT&T that same source had explained and analyzed that more than 30 million dollars had been lost because of the recession. Although they tried to cover it up by saying that the recession had not affected them, the drop had something to do with the amount of money they were investing in their new products. Now their online source says that each share had dropped its ranging from $3 dropping to $2.12 per share and it dropped to 9.8 percent. If we were to look at this and compare it to any other business it might not be as important of a drop as best buy or even target hit, but for a company that depends on communication for their money this drop was huge.

Taking into consideration the fact that this company makes millions of dollars on yearly basis they took into consideration accepting the TARP funds they was offered. It might have seemed a little bit risky but in the end AT&T decided they were not going to put their hands on these funds. In accepting these funds they would become an open market, something that they do not need because the privacy makes them more money, and they simply do not need the money.

Thinking in big numbers this company is not in any need for more money. Before the crash, before the recession this company had revenue of $124,028 million, lots of money was coming into their hands for their profit was of $12,867 million. Oddly enough recession hit and it appeared to not have affected their revenue. The revenue after the recession was of 2.4 billion dollars…impressive.

Although a lot of companies were involved in the mortgage lending this was a bit irrelevant for AT&T to get involved in that. However they did share their opinion on the financial crisis and claimed that they too felt the drops of sales and customers hesitating in buying things. Yet as the economy seems to be trying to improve itself they are taking this time as an opportunity. They have taken their business overseas where they are working on improving their satellites and services by increasing the capability of global services. Being one of the few companies where taking your phones overseas is very possible they want to improve their network. Their plans and their economical affordability are being considered and revised to help them expand their business.

Interestingly enough AT&T is a bigger company than I ever imagined but considering the fact that they are working on improving their business I don’t understand why their focus is overseas whereas within the U.S their service, well it is not the best. Would it not be a lot more rational to focus on the customers they already have and satisfy them rather than focusing on the possibilities that may come. Interesting survey said that 3 out of every 8 customers that acquire service with AT&T leave because of bad customer service and horrible network. Something to look at people, you get what you pay for.