Analysts are projecting iPhone growth will add at least 1 Million new subscribers to AT&T by Q4 '07, with an additional 3.5 Million added by late next year. Amazing that a phone could spark such growth!

In a report to clients on Thursday, equity research analyst Mike McCormack said his latest model has the inaugural Apple handset contributing 915,000 new subscribers to AT&T's wireless network during the second half of this year, with an additional 3.5 million likely to follow in 2008. McCormack's latest calculations represent an approximate 17 percent increase to his previous estimate of 5.4 million new subscribers in 2007, and a 76 percent increase to his 2008 estimate of 4.6 million newcomers. The iPhone should also help curb AT&T's churn (or loss of subscribers) during the same time frames, the analyst said.