AT&T beats profit estimates in Q1, sells 4.3 million iPhones

posted by Daniel P.

Apr 24, 2012, 7:23 AM

AT&T beats profit estimates in Q1, sells 4.3 million iPhones

AT&T just posted another stellar quarter, thanks to the increased data usage coming from both smartphones and wireline data consumption increase. The carrier made about a billion more from data compared to the January-March period of last year.

In total AT&T locked in $31.8 billion of revenue, of which it netted $3.6 billion in profit, or about $0.6 a share, beating Wall Street's consensus of $0.57 a share.

As per the boss Randall Stephenson, AT&T's chairman and chief executive officer:

We continue to capitalize on our terrific momentum in mobile Internet. Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins. These results add confidence in our outlook for the year.

The company sold the record for a first quarter 5.5 million smartphones, and clarified that about 30% of its smartphone customers on contract are using 4G-capable handsets. Tablets and tethering plans also broke the previous record in sales, contributing to the overall rosy picture, and churn rate was the lowest in seven quarters.

AT&T will have a conference call at 10AM Eastern, but out of the 5.5 million smartphones sold, the carrier said 4.3 million were of the Apple variety. Verizon sold a million of them less than the previous quarter, and AT&T's 4.3 million number is 3.3 million short of the Q4 record, so Apple's earnings today might get interesting.

source: AT&T

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40 Comments

37. hitechredneck

Posts: 103; Member since: Nov 21, 2011

Couple of things. 80% is wrong what about all the people who are still locked in a contract with androids and iphone 4 and iphone 3s. I know more people with android phones than iphones. Second people going back to at&t is doing so they can talk and surf the web since the iphone 4s is not LTE. Plus at&t's phones can be taken overseas. And lets not forget who has the fastest 4G LTE network by PCWorld. Which still does not apply to the iphone 4s. One last thing Big Red as you all call it is still the most expensive carrier. Sprint just has too many things going on with unltd data for the iphone plus boost mobile and virgin mobile.

posted on Apr 24, 2012, 11:55 PM 1

34. APPLE_ROYALLY

Posts: 25; Member since: Apr 24, 2012

We see. we hear sales are rising! Sales speaks of itself. We like that!

posted on Apr 24, 2012, 6:54 PM 1

29. networkdood

Posts: 6330; Member since: Mar 31, 2010

AT&T has been doing really well with its network over the last few months...seems VZW has been taking more hits in that department - especially with their 4G issues. Either company has worked out for me, and I pay for it, too....LOL

posted on Apr 24, 2012, 2:14 PM 0

28. networkdood

Posts: 6330; Member since: Mar 31, 2010

Taco, Americans are not exactly the brightest people on Earth - most of us are riddled with progandic news, societal messages day in and day out that basically tell us how we should think and feel. It takes a person to stand up for what they truly believe in, rather than just follow the crowd....with that being said....there are more Android phones out there on the world marketplace - because ISOLATIONISM is so yesterday...lol. Again, I like having a choice with my phone make and model as well as choice of app stores....do APPLE users?

posted on Apr 24, 2012, 2:12 PM 0

32. taco50

Posts: 5506; Member since: Oct 08, 2009

So you don't follow the crowd, but you use android which is used by the majority of people? Think about that and how little sense it makes.

posted on Apr 24, 2012, 4:16 PM 1

39. MYTHiKAL unregistered

Pretty obvios you didnt get what he said.. its about choice, not about buying something that's starting to seem soo basic, i would only recommend it for my 60 year old mom to use.. LOL

posted on Apr 26, 2012, 11:02 AM 0

10. Whateverman

Posts: 3295; Member since: May 17, 2009

I just don't get why so many customers are still going to AT&T for their iPhones, when their is a VZW version now. I'm sure most AT&T iPhone users have no signal issues, talking and browsing at the same time and the one and a half seconds faster data speeds with AT&T. But their are customers who curse AT&T, their signal strength or lack of, and their prices...yet when presented with a VZW iPhone 4S that would correct most of their issue, they choose to go back to AT&T! I just don't get it!

posted on Apr 24, 2012, 10:19 AM 1

12. taco50

Posts: 5506; Member since: Oct 08, 2009

If you've been with a company for years the move isn't so easy. They may have family on AT&T, lines can still be in contract, some people don't like change. Most people will stick with a company unless it gets really bad.

posted on Apr 24, 2012, 10:22 AM 1

14. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Whoa whoa whoa! Take what you just said, throw "operating system" and "Apple" in for AT& T and carrier, and you'll understand a large part of why 80 percent of AT& T's smartphones sold were iPhones. Can you do that, Taco? Are you capable of extending logical thinking to your favorite company?

posted on Apr 24, 2012, 10:26 AM 1

16. taco50

Posts: 5506; Member since: Oct 08, 2009

Well considering until last year VZW had no iPhone at all and now over 50% of their smartphone sales are iPhones I'd say consumers have no problem leaving android. Perhaps due to poor experiences.

posted on Apr 24, 2012, 10:29 AM 4

17. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Most of the people who moved to the iPhone did so from other carriers or made the move from Blackberry. This is why in overall US marketshare Android barely budged, while Apple climbed and Blackberry sank even more.

posted on Apr 24, 2012, 10:38 AM 1

20. taco50

Posts: 5506; Member since: Oct 08, 2009

Haha sure whatever makes you feel better. There's lots of people that were sick of android and made the switch.

posted on Apr 24, 2012, 10:45 AM 2

21. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Yeah? And what proof do you have of that, Taco? I mean, really, how do you know? You don't.

posted on Apr 24, 2012, 10:46 AM 1

18. Whateverman

Posts: 3295; Member since: May 17, 2009

True, I can understand NOT wanting to give up mobile to mobile minutes and texting with friends and family. But with apps like Viber and Whatsapp on Android and iOS, the decision to jump ship when your service isn't good should be a no brainier, right? But I know what youre right, change is hard...even with something as simple as switching carriers.

posted on Apr 24, 2012, 10:43 AM 0

25. audiblenarcotic

Posts: 114; Member since: Nov 16, 2011

Personally, the way I look at the iPhone is this.. The iPhone is like the Justin Bieber of cell phones. Just because it's incredibly popular does not make it that good.

posted on Apr 24, 2012, 11:08 AM 2

33. xtian1103

Posts: 364; Member since: Feb 11, 2012

android phones are like kim kardashian and paris hilton... cuz they SUCK!!!

posted on Apr 24, 2012, 6:48 PM 0

35. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Oh yeah? What sucks about all Android phones?

posted on Apr 24, 2012, 6:56 PM 1

36. paulyyd

Posts: 340; Member since: Jan 08, 2011

lol you should just stop, commenting on every iPhone comment is making you look desperate there buddy. umad and you know know it. its cool though.

posted on Apr 24, 2012, 7:48 PM 1

13. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Well, in some markets AT&T actually works quite well. I've rocked it on two different devices for almost nine months and it's worked really well. I really have no complaints. Granted, I also haven't had an iPhone, which customers will still complain about dropped calls with, but hey, to each their own.

posted on Apr 24, 2012, 10:24 AM 1

38. MYTHiKAL unregistered

Moving companies for some people is not easy.. There are a lot of factors.. and ONE of them is the fact that Verizon is more expensive in the long run..

posted on Apr 26, 2012, 10:59 AM 1

40. Whateverman

Posts: 3295; Member since: May 17, 2009

True, it is more expensive. But you have to be smart about your plan. With friends and family calling, messaging apps, and multiple lines make VZW a much better value than most may think. I have four lines, two smartphones and two feature phones, but I pay about 20 bucks more than what I paid Sprint for two Evos with unlimited everything. I have unlimited data, 1400 mins, 10 Frineds and Familiy contacts, and two 250 text plans. People love Sprint's unlimited everything because it allows them to not worry about their usage, but with just a little investigation some customers may find VZW is an even better value.

posted on Apr 26, 2012, 12:16 PM 0

5. taco50

Posts: 5506; Member since: Oct 08, 2009

Wow about 80% of smartphones were iPhones. That's domination.

posted on Apr 24, 2012, 9:20 AM 3

6. networkdood

Posts: 6330; Member since: Mar 31, 2010

that will change Q2

posted on Apr 24, 2012, 9:44 AM 6

9. taco50

Posts: 5506; Member since: Oct 08, 2009

So far on VZW over 50% of smartphones are iPhones and 80% on AT&T. Let's see what happens with Sprint. Goes to prove my theory that when people have a choice they choose iPhone.

posted on Apr 24, 2012, 10:02 AM 0

31. jcpwn2004

Posts: 314; Member since: Jan 18, 2012

i'm sure you think beats head phones are the best out there since they're the most popular too, or that justin bieber is the best musician of our time.