News Summary: AT&T boosts net in lower phone sales

: AT&T Inc. had its best profitability ever in its wireless arm because it sold fewer smartphones.

WHY PHONES DECLINED: AT&T says its subscribers are now holding on to their phones longer: The rate of upgrades to new phones was at a record low in the second quarter.

WHY THAT'S GOOD: AT&T subsidizes each smartphone by hundreds of dollars to be able to sell it to customers for $99 or $199. That comes out of profits.

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