The following video is from today's MarketFoolery podcast, in which host Chris Hill, along with Charly Travers, Jason Moser, and Joe Magyer, discuss the latest business news. When do declining sales lead to higher profits? When you're AT&T. Declining smartphone sales in AT&T's second quarter led to record profits in the wireless division as the company saved on subsidies. In this segment, the guys analyze this surprisingly profitable strategy, discuss the ever-shifting business model of carriers like AT&T and Verizon, and share where they believe the model is headed next.

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