AT&T Activated 3.7 Million iPhones Last Quarter

AT&T has announced that iPhones accounted for 3.7 million out of 5.1 million smartphone activations in the second quarter.

AT&T sold 5.1 million smartphones in the second quarter. Smartphones represented 77 percent of postpaid device sales. At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T's postpaid subscribers had smartphones, up from 49.9 percent, or 34.1 million, a year earlier. AT&T's ARPU for smartphones is twice that of non-smartphone subscribers, and about 88 percent of smartphone subscribers are on FamilyTalk or business plans. Churn levels for these subscribers are significantly lower than for other postpaid subscribers. More than one-third of AT&T's postpaid smartphone customers use a 4G-capable device.

Android, iPhone and Windows device sales were supported by AT&T's 4G network. Only AT&T's 4G network lets iPhone 4S download three-times faster than any other U.S. carrier's network. In the quarter, the company activated 3.7 million iPhones, with 22 percent new to AT&T.


Other Earnings Highlights:
● $0.66 diluted EPS compared to $0.60 diluted EPS in the second quarter of 2011, up 10 percent year over year and sequentially
● Consolidated revenues of $31.6 billion, up 0.3 percent versus the year-earlier period; up 2.0 percent when adjusted for Advertising Solutions sale
● Highest-ever wireless margins, operating income margin of 30.3 percent, with EBITDA service margin of 45.0 percent
● $2.5 billion in stock buybacks; 75.8 million shares repurchased
● AT&T's growth engines - wireless, wireline data and managed services - represented 80 percent of total revenues when excluding Advertising Solutions, and grew 5.5 percent versus the same quarter a year ago, led by:
-- 18.8 percent growth in wireless data revenues, up $1 billion versus the year-earlier quarter
-- 13.5 percent growth in strategic business services revenues
-- 38.3 percent growth in U-verse revenues
● Best-ever postpaid, prepaid and total wireless churn; postpaid churn drops to 0.97 percent
● 1.3 million total wireless net adds, with gains in every customer category; 320,000 postpaid net adds
● Strong smartphone sales of 5.1 million with more than one-third of all postpaid smartphone subscribers now on 4G-capable devices
● Branded computing (tablets, tethering plans, etc.) net adds of 496,000 to reach a total of 6.3 million, up more than 50 percent versus a year ago
● Postpaid wireless subscriber ARPU (average monthly revenues per subscriber) up 1.7 percent to $64.93
● First enterprise revenue growth in more than four years
● Wireline consumer revenues up 1.7 percent versus the year-earlier period; their strongest growth in more than four years
● 6.8 million total AT&T U-verse subscribers (TV and high speed Internet) in service; U-verse TV subscribers grew 22 percent year over year

AT&T's second-quarter earnings conference call will be broadcast live via the Internet at 9:30 a.m. ET on Tuesday, July 24, 2012, at www.att.com/investor.relations.