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

1. scottmbolt unregistered

New headline should read "AT&T reports 26% increase in earnings due to iPhone, while iPhone users experience a 100% decrease in functionality due to a lame-ass faulty design!"

2. networkdood

Posts: 6330; Member since: Mar 31, 2010

....and, waiting for the bashers to being their MONSTER bash....

3. Mateo8326

Posts: 472; Member since: Jul 15, 2009

Even though its a Fault it got the job done, it is sad that some customers had to suffer from the signal issue.

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........!!!!!

26. Mateo8326

Posts: 472; Member since: Jul 15, 2009

what catagory do i fit in then since apparently you must know what service you think i have goof. This article is about Profit not network quality save that comment to the next article.

30. greathero1

Posts: 584; Member since: Jun 13, 2008

Cant you say they same thing about the merger of the 5 tel cos that formed VZ and made it the largest carrier as well? Same thing. Companies have been merging and buying one another out for a while now. No need to single anyone of them out when the carrier that you have has did the same thing.

31. remixfa

Posts: 14605; Member since: Dec 19, 2008

imma tell you why ur wrong -GSM doesnt have nearly the building and hill penetration that CDMA does, which is why vzw works inside while ur iphone is on wifi. - 99.999% of the people dont care about voice and data at the same time. its a fanboy bulletpoint. nothing more. I have that "ability" now, and i dont think ive ever used it - GSM is on a total of 2.. yes 2 MORE countries than CDMA. That means its nearly a 50/50 split Read less ATT propaganda and do research. - Carriers are not dropping CDMA for GSM, the evolution to LTE has carriers dropping BOTH cdma and gsm for LTE. LTE works on both networks, dumbass. Hence how VZW and ATT can both use it... lol

32. remixfa

Posts: 14605; Member since: Dec 19, 2008

i dont have ATT or VZW, im comming from a factual standpoint, not a fanboy defencive standpoint. Yes, all 4 major carriers have been merging with local carriers the entire time.

33. Whateverman

Posts: 3295; Member since: May 17, 2009

No, try 1.5 million new customers from that Alltel aquisition. That's a huge amount. Now that may shrink to 200,000 once these people realize that they have to be converted to ATT, but they started with yes 1.5 million. As for why you believe CDMA is obsolete, you gotta be joking. Considering that WiFi is everywhere now, my Droid can do voice and data at the same time. But I, like most people have, never found it to be useful. Considering you have less coverage, I sure you don't get much of a chance to use it either. No evolution compared to HSPA? Rev O is all we needed. Is ATT faster in some places, yes. But again my Droid loaded PA about a half a second slower then a friend's iPhone. A half a second is not a deal breaker. And as the people above have already pointed out, nobody is switching from CDMA to GSM. Everyone is going too 4G, while ATT is still upgrading to 3G. So if anything, ATT's entire network is obsolete. Added to the fact that ATT is crippling devices now so the iPhone remains their bread and butter, and you got technology at a virtual STANDSTILL! Their sales are great with the iphone, but that why ATT keeps coming in 4th on everything else. LOL.

38. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Yahhh 99.999% of the fanboys don't care cuz u never experince that or you simple can't do that with slowrizon CDMA obsolete crap period...!!!! Let me give a few examples: Telstra, Telus, Bell Canada, Movistar in 10 latin countries, all those carriers drop CDMA for GSM proved......Make your research fanboy and you'll se there a whole different world beyond Bubba trailer park....!!!

39. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Because fanboys like you Europeans and Japanese who realy got the latest in cell tech are laughing so hard about americans and ask them how many CDMA carriers they have...!!!!!

40. Whateverman

Posts: 3295; Member since: May 17, 2009

Like I said I have done voice and days at the same time, not useful. So if that's your big "gotcha" you got nothing. I don't know of you were replying to me with those misleading facts about companies going to GSM, but I said no is going to GSM. Everyone except ATT is moving to 4G. ATT will start next year but they don't even have a decent 3g in place as of yet. But don't worry, by 2012 you'll get a little taste of LTE. Till then, enjoy your dropped calls and poor voice quality.

41. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

What I said was true fanboy, if your narrow fanboy mind can't accept it am sorry for ya, CDMA is dead face it....and will see whos more backward compatible LTE to HSPA or LTE to the obsolete CDMA. Don't worry I keep checking my emails, surfing the net and google trafics during a call on the go while you are stuck in your trailer park using the wifi....!!!!

42. Whateverman

Posts: 3295; Member since: May 17, 2009

Never been to a trailer park, but I'm sure yours is really nice. As for CDMA being dead, you still have explained how a dead technology manages to mop the floor with your weak 2G signals. Oh and guess what, there's wifi in all kinds of places now like restaurants, bookstores, airports, and many other places to get a wifi signal. So I down have to stay in my home to use it. But back to my question. Why is your network still number two with the best selling phone in history? This time can you save the insults.

44. remixfa

Posts: 14605; Member since: Dec 19, 2008

hey doggie, Japan runs on wCDMA, not wGSM.. lol And just for giggles, heres a CDMA map. Note every country in blue and orange uses CDMA. Wow, look at all those european countries!! again, only 2 more countries use GSM than CDMA. You may be a eurocentrist socialist that think the world begins and ends with western europe, but the rest of the world disagrees with you :)

45. remixfa

Posts: 14605; Member since: Dec 19, 2008

46. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Dude W-CDMA is not CDMA and what it makes it so close in term of users is china who has the largest carrier in the world but more countries uses G S M, please leave the trailer park fanboy.....!!!!

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