Wireless giant AT (NYSE: T) has an enormous base of iPhone users, many of whom are using older models. During a recent conference, the company declined to disclose exactly how many iPhone users are on its network. But with the iPhone having a market share above 50% in the United States, and with AT having nearly 90 million postpaid phone subscribers, we're likely talking about many tens of millions.

Each year, Apple (NASDAQ: AAPL) releases a new family of iPhones. These launches used to be a big deal, but lately, improvements have been incremental. Apple still sells an incredible number of iPhones, but those using older iPhones usually don't have a good reason to upgrade.

A lack of enthusiasm for new phones is one reason why AT's churn rate is so low. AT's postpaid phone churn rate was just 0.7% in the second quarter of 2024, which translates into very few subscribers jumping ship. A phone upgrade is a natural time for wireless subscribers to consider a new carrier, especially considering the proliferation of deals and promotions.

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Source Fool.com