AT&T's Q1: iPhone still carries the team

Summary:AT&T said that "both Android and iPhone device sales remain strong," but it's clear that Apple is carrying the sales load.

AT&T sold 5.5 million smartphones in the first quarter and 4.3 million of those activated were Apple's iPhone. Let's just say AT&T's device diversification effort remains a work in progress.

In a statement outlining its first quarter results, AT&T said that "both Android and iPhone device sales remain strong," but it's clear that Apple is carrying the sales load.

AT&T has recently pushed Nokia's Lumia 900 smartphone powered by Windows Phone. Verizon has also touted the need for another major wireless platform to complement Android and Apple. Both carriers are selling more iPhones and trying to diversify.

The wireless giant reported a better than expected first quarter. The company reported first quarter earnings of $3.6 billion, or 60 cents a share, on revenue of $31.8 billion. Wall Street was expecting first quarter earnings of 57 cents a share on revenue of $31.85 billion.

Overall, AT&T's quarter was solid. By the numbers:

  • Wireless revenue for the quarter was $16.1 billion, up 5.4 percent from a year ago. Wireless data revenue was $6.1 billion, up 20 percent from a year ago. Wireless operating income was $4.4 billion.
  • AT&T improved its first quarter operating margin to 27.2 percent, up from 25.8 percent a year ago.
  • The company ended the quarter with 103.9 million subscribers as it added 726,000 wireless subscribers. Postpaid additions were 187,000.
  • Postpaid churn in the first quarter was 1.10 percent, down from 1.18 percent a year ago. Total churn was 1.47 percent, up from 1.36 percent a year ago.
  • AT&T reported first quarter wire line revenue of $14.9 billion and operating income of $1.8 billion.
  • Business revenue was $9.2 billion, down slightly from a year ago. Business data revenue was up 19 percent from a year ago.
  • AT&T's U-verse service ended the quarter with 6.2 million subscribers for high-speed Internet and TV.


Topics: iPhone, Banking, CXO, Enterprise Software, Mobility, Networking


Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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