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

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, AT&T, Wi-Fi

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  • I guess the 800k daily Android activations are not at AT&T

    Smaller numbers for iPhone at Verizon, but still significant (more then half).
    • Yes, 78% of all AT&T smartphone sales are iPhones; overall Apple got ...

      ... bigger marketshare in USA than even in Q4. In developed world picture similar to that.

      But in <b>developing</b> world Android phones rule. They sell there at $$99-300 unsubsidised prices, while Apple's cheapest iPhone 3Gs costs more than $400 (in best case; usually, it costs $450).

      That said, in most of those sales people have no idea that OS in their phone is Android, and even if the have, they do not really use device as real smartphone. Google Market statistics show.
  • Why don't they just work harder to boost iPhone sales?

    I get a feeling that Apple would innovate even further if ATT would act like a partner instead of a competitor. Imagine new products that combine Apple tech with AT&T's infrastructure.
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