AT&T reports 26% increase in earnings thanks to the iPhone

AT&T reports 26% increase in earnings thanks to the iPhone
AT&T, led by a record 3.2 million iPhone activations in the second quarter, reported a 26% increase in earnings over the prior year's figures. The carrier earned $4 billion dollars for the three months compared with $3.2 billion that was added to the vault last year. Of the 3.2 million people activating Apple's touchscreen device on the network, 27% were new customers for AT&T. The tech giant was also buoyed by the huge number of iPhone 4 units pre-ordered. That figure was 10 times the number that had pre-ordered the iPhone 3GS last year and helped the results for this year's second quarter.

AT&T's churn rate was a record low 1.29 from 1.48 last year. The bottom line for the period showed that AT&T added 1.6 million wireless customers for the quarter, which brings the total number of wireless customers to 90.1 million, up 13% year-over-year. That figure puts the carrier second in the U.S. to Verizon Wireless based on the number of subscribers. AT&T Wireless CEO Randall Stephenson said, "We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow." He added, "These results add to our confidence going into the second half of the year." Revenue rose only .6% to $30.8 billion for the period.

The results allowed AT&T to raise its forecast for the year. The company now expects earnings to surpass the total from 2008 while previously the expectations were for AT&T to match the earnings total from that year.

source: CNET

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47 Comments

23. bucky

Posts: 3797; Member since: Sep 30, 2009

CDMA will always = fail.

19. taco50

Posts: 5506; Member since: Oct 08, 2009

The idiots here are in full force. iPhone sucks! Yes that's why apple sold 3.2 million. Att sucks! Let's see, they have 90 million subscribers. They have to be doing something right. Morons on here spend time saying that Steve Jobs is an idiot. He's one of the most succesful CEO's in the world and your spending your life talking shit on a forum.

28. greathero1

Posts: 584; Member since: Jun 13, 2008

I totally agree with you. If ATT was so bad, people would be leaving in droves but people are actually staying put. The network has improved drastically and that is why people are renewing their contracts. Crazy thing is that JD Power does surveys and ATT ranks at bottom but when independent companies do reall world tests themselves ATT usually is at the top. They are just the company that people love to hate. Same thing with Apple. Android fanboys are relentless in their assault and bashing but it never sways anybody. I know people with the iPhone who have not experienced any drop calls or antenna issues but thats all they want to talk about. These same people say that they are sold for life b/c this phone has made such an impression on them. If you like Andoid and VZ thats cool but why do we have to have pissing contests on every damn post. For whatever their opinions are, the numbers dont lie. ATT has been spanking VZ on adds for a while now and no single Android device has put up the numbers as the iPhone.

34. 1130crew

Posts: 10; Member since: Jul 22, 2010

in the words of jayz men and women lie numbers dont !!!!! thats the one thing that you cant argue about numbers

36. Whateverman

Posts: 3295; Member since: May 17, 2009

ATT hasn't been spanking anything. They are number two with the best selling device on the market, they should have retaken the number one spot a long time ago. All thoses adds havent made up for the fact that their network is fourth, and that's just with JD Power. There have been tons of other surveys that show ATT's network could use some updating. Everyone that loves to hate ATT is most likely an ATT customer who loves their phone, but hates their network. You know those 2G area customers who keep hearing how great 3G is but never experience it themselvs. People on other networks just think its funny that you would pay VZW prices, with a fifth of the network.

43. Georage

Posts: 3; Member since: Jul 24, 2010

I agree with you and Taco50. I just don't understand why every article ends up being a competition between AT&T vs. Verizon or Apple vs. Android. And the hate seen here by some of the posters is unhealthy in my opinion. I think the truth is somewhere in the middle. AT&T is not as bad as some people like to say and Verizon is not as good as some like to believe. The same is true for Apple vs. Google.

18. mas1205

Posts: 3; Member since: Jul 22, 2010

Anyone hear about AT&T's outage in eastern North Carolina?

27. Mateo8326

Posts: 472; Member since: Jul 15, 2009

how bout the one in california with verizon lol

11. 1130crew

Posts: 10; Member since: Jul 22, 2010

it just comes down to this if u dont like it dont buy it simple ................ but u waste time out of your life to talk about a phone that u dont even have on a network that your not even on when steve jobs himself said that the iphone phone would have done the same thing to VZW but thats not enough for u..... plus when u say that we dont have any other phones what type of phone do we not have ??? we hav the iphone blackberry plam droid etc what more do you need and we have 60% of all smartphones on our network and 25% are iphones look it up and stop reading blogs from haters who dont kno anything

13. remixfa

Posts: 14605; Member since: Dec 19, 2008

you have an iphone, a few gimped androids, the same blackberrys as everyone else, the same palm noone's buying... so the only thing that stands out is the iphone.. and thats not coincidence right? ATT is the only carrier that gimps their androids and it has nothing to do with them making sure the iphone is always top dog? Everyone used to bitch about VZW putting standard software on each phone. now they stopped doing that, but ATT is intentionally shooting all its "inter-ATT" competition in the leg to make sure the Iphone always stands alone.

16. Whateverman

Posts: 3295; Member since: May 17, 2009

1130crew - Steve Jobs couldn't even calculate signal bars for his own phone how could he possible know what would have happened if he put his phone on the largest network in the US? VZW and Apple would have been a better match but of course Steve is gonna come to ATT defence, they are partners. VZW invested in their network, ATT invested in device. Everyone wants an iPhone on VZW because it would smoke. Especially with LTE around the corner. ATT is still playing catch up to VZW's 3G with huge imonkey on its back.

17. mas1205

Posts: 3; Member since: Jul 22, 2010

Anyone hear about AT&T's outage in eastern North Carolina?

29. greathero1

Posts: 584; Member since: Jun 13, 2008

okay so the only thing that stands out at VZ is the Droid X. other than that both carriers have blackberries, palms, and winmo operating systems. As for Android being gimped, thats one way of looking at it but you and everyone who thinks like you fail to realize that 95% of people who purchase Android phones on ATT are not going to root their phone or look for apps outside of the Android market so its not a big deal. The overwhelming majority of users dont care. Thats why the Aria and Backflip still sold well despite that. Also, you argument about ATT blocking inter-ATT competition is completely false. I have seen many Aria and Backflip commercials and ads out there (promotion no?). Not to mention that ATT is going to offer the new Blackberry touch slider soon, will release 4 more Android devices this year, and being a launch carrier of Winphone7. ATT has a very diverse offering of all operating systems out just as everyone else.

35. 1130crew

Posts: 10; Member since: Jul 22, 2010

when att got the iphone they were the largest in the us do homework before you talk reckless every yr we get more new acts then vzw

37. Whateverman

Posts: 3295; Member since: May 17, 2009

@greathero1 - You bring up a few good points and I agree with on few of them. Especially about the diversity of ATT products. Handsdown they offer the most phones, but someone posted earlier how iPhone are for the general public and Androids are for the techies. And techies are not the kind to NOT root a phone if they have the means. So to say 95% would not root it is kind of high. I would agree with maybe 30 or 40%. Think about how many people jailbreak their iPhones. @1130 crew - My point is that with the iPhone being such a nobrainer it should have propelled ATT far beyond VZW reach. But it didn't, because they didn't have the network to pull that many customers. Do you realize how many people are waiting for that exclusivity deal to end? What's stopping these people from switching to ATT right now? My customers always tell me its the network.

9. Whateverman

Posts: 3295; Member since: May 17, 2009

I just can't understand how so many people are willing to buy a product that is sold as a PHONE. Has a monthly PHONE plan, from a cell PHONE company, is called an iPHONE 4, but you can't be used as a phone. ????? It just boggles the mind. Why not get a real phone and if you simply have to have that UI, buy an iPod Touch.? Maybe I'm old fashion for actually talking on my phone, and if your iP4 works as a phone then you are one of the lucky few. Either way, if I were ATT I'd post these earnings proudly too, but pray that exclusivity keeps getting extended.

4. CHEFJEFF

Posts: 147; Member since: Sep 22, 2009

Take away their exclusive iPhone and lets see what their profit look like.

5. Mateo8326

Posts: 472; Member since: Jul 15, 2009

yeah and take away droid x ......and ......htc 4g etc. won't prove anything

6. Fanboys Suck

Posts: 609; Member since: Dec 12, 2008

Exactly... Take away "whatever", and see how any company does...

7. remixfa

Posts: 14605; Member since: Dec 19, 2008

hey mateo, ATT is the only one basing their entire network's worth on a phone. Take away the droidX. Verizon didnt have a true "iphone competitor" up until this year or last, and they retained top spot. Bottom line is most people are smart enough to realize network quality (verizon) or overall price value (tmobile/sprint) is important. For everyone else, theirs iphone on ATT. if you want a bad network thats way overpriced, and a phone has never been good at making calls but is trendy... ATT and Iphone are your answer. All this money they make, why is it their network sucks so bad for the money? If they priced themselves like Tmobile, i wouldnt say anything. They price themselves like VZW with 1/5th the coverage. They are just pocketing the money instead of fixing their network.

8. zuno gyakusatsu

Posts: 257; Member since: Mar 16, 2010

"Bottom line is most people are smart enough to realize network quality (verizon) or overall price value (tmobile/sprint) is important" unfortunately Mateo8326 does not fit in this catagory.

10. CHEFJEFF

Posts: 147; Member since: Sep 22, 2009

I agree. But some people don't care about network quality, or overall price, these are the people that chose AT&T just because they have the iPhone. If you were to take away any of Verizon's top phones, they would not suffer, they'd still be #1. AT&T would be in some DEEP SHIT if they lost the iPhone, their network sucks SO BAD, who would stay with them????

12. remixfa

Posts: 14605; Member since: Dec 19, 2008

lol, zuno and chef, that was my exact point. VZW was #1 without a "flagship phone". why? SOME people actually like being able to make calls or use 3g data ANYWHERE more than they like to pretend that a phone is a status symbol of some sort.. Some people are willing to give up a little service quality to save 40% on their service. Some people think that they are in some kind of "exclusive club" because they have a phone with a fruit logo on it and overpay for sub par service. getting an iphone will NOT make u more attractive to chicks. Stop double dating with your mom and an invisible girlfriend.. it will do much more than the phone can.. LOL.

14. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Hey Fanboy you forgot AT&T was number 1 before the iphone without eating carriers left and right like slow-rizon did example (Altell, Prime-co, US cellular)

15. remixfa

Posts: 14605; Member since: Dec 19, 2008

hey dumbass, you forgot that ATT became number 1 ahead of verizon when cingular bought ATT and kept the ATT brand name. Verizon WAS #1 until then, and almost RETOOK the spot WITHOUT the merger comming from like a 15 million deficit after the Cingular-ATT merger. Nice try, but u should... i dunno.. know something before u try to mouth off. and i love when ATT fanboys call verizon "slo-rizon". You do realize that verizon's entire network my only go up to 3mb/s, but its their ENTIRE network. ATT's network may have a "Hypothetical" max of 7.2 but its in VERY limited metro areas. Outside of that, they rock 1.5-2mb/s "max theoretical". And thats if you get the signal. Id take a 5x more consistant signal that a speed boost "here and there". Is it sad that Tmobile now has more HSPA+ 21mb/s coverage than ATT has HSPA 7.2 coverage??? Yet ATT charges 40% more??

20. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Yeahhhh for sure Fanboy only in your wet dreams slow-rizon speed reach 3mb/s now I tell ya nice try......keep dreaming with your obsolete CDMA crap.......!!!!!

21. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

I don't know dude maybe is the grass you're smoking or you using the wrong pills but slow-rizon got back as the largest carrier when they bought Altell, and that almost was in the mind of fanboys like you......and BTW after the Altell buyout slow-rizon was over 10 millions customers ahead of AT&T now the gap is less than 2 millions......CAN YOU HEAR ME NOW.......!!!!!

22. Whateverman

Posts: 3295; Member since: May 17, 2009

Lets not forget that ATT picked up a huge amount of customers from that same Alltel acquisition. Because when your network is 5 times as large as the number 2 carrier, the overlapping coverage areas have to be sold off. Also lets not forget all the companies ATT acquired themselves. Yes, at one point in time, they did care about expanding their network, but they gave all that up for iPhone exclusivity. And why is it that an "obsolete CDMA network like VZW continues to kill Att in every customer satisfaction and dropped call poll? EVERYTIME? Its gonna get even worse with VZW launching LTE this year while ATT wont even begin until mid 2011. Talk about slow! And no, I can't hear you. Your call dropped, again!

24. remixfa

Posts: 14605; Member since: Dec 19, 2008

some people never learn.. or at least refuse to. BTW, since VZW has 5x the total 3g coverage of ATT, that means 4/5ths of ATT's coverage is basically EDGE. What is that .3mb/s? yea, id take VZWs 3mbs EVERYWHERE over juggling edge/3g depending on where im sitting.. or holding the phone. I dont have verizon anymore, I have Tmobile, just for reference. VZW is still the best carrier by far in coverage n 3g coverage. Tmobile is by far the fastest and cheapest. And since im sitting in a 21mb/s area, im quite happy :) Again, isnt it sad that a "value" company like Tmobile has MORE HSPA coverage than a "premium" company like ATT for 40% less a month? ATT doesnt even have Sprints 3g coverage, which is again waaay cheaper than ATT.

25. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

What is that huge amount.....??? 200.000 is that huge for ya haaa.....!!!! and am gonna tell ya why CDMA is obsolete: - Hasn't evolved too much in compares to HSPA. - Can't do voice and data at the same time. - Is not global - Many carriers around the world has droped for GSM and non the oposite. make a little research and you'll see why slow-rizon is rushing to LTE fanboy........!!!!!

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