AT&T reports record quarter, again driven by iPhone sales in Q3

By on Oct 21, 2010 at 9:20 AM
General October 21, 2010

AT&T reported a huge quarter Thursday morning, once again propelled by the success of Apple’s iPhone. The nation’s second largest wireless carrier activated a record 5.2 million iPhone units during Q3 2010 — a huge leap from its previous record of 3.2 million in a single quarter. 24% of those iPhone activations were new customers.

More highlights from the quarter include:

  • Record 2.6 million net subscriber additions (30% increase year-over-year)
  • 745,000 net postpaid subscriber additions
  • 321,000 net prepaid subscriber additions
  • 92.8 million total wireless subscribers
  • Record-low churn of 1.32% (down 0.10% year-over-year)
  • Consolidated revenue up 2.8% year-over-year to 31.6 billion
  • Operating income was up $100 million year-over-year but operating expenses were up $700 million

The real takeaway from AT&T’s impressive Q3 is unfortunately a negative one, even in the short term: the iPhone makes up a massive amount of AT&T’s business. Should the carrier lose iPhone exclusivity next year, which looks increasingly likely, the results could be disastrous.

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  • HillBill

    Anybody who thinks that Verizon can handle a sudden influx of traffic from iPhone users is living in fool’s paradise.In fact, AT&T learned the lesson the hard way and is pouring billions to over build their network as we speak. At the same time, Verizon is feeling the pressure of data centric devices slowly but surely. They are at a point where AT&T was 2 years ago.

    • Cellstudent

      Anyone who thinks Verizon will have hard time keeping the network up if an iPhone comes is a shortsighted fool. Even if exclusivity does end, you won’t see any more then, MAYBE 5% of AT&T’s iPhone users jump ship to Big Red every quarter. Verizon can’t handle ALL the iPhone traffic on their own, but they’ll never have to because there will always be some users that refuse to leave AT&T for other non-Apple reasons.
      It’s totally a non-issue.

  • JJFNIGHTS80

    Only AT&T cares bout the crappy Iphone is the only phone in their lineup that’s making them real money. and Care less bout Android WHICH I NEED A GOOD ASS Android phone right now. I’m going to switch to T-Mobile where they still have their data unlimited plans. Cause no one that’s new or old wants YOUR CRAPPY limited data plans AT&T really sucks right now

  • AndyS

    Hah, love the Batman AT&T building image from Nashville.

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