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AT&T Q1: 3.6 Million iPhones Activated, 322k Tablets

U.S. carrier AT&T reported its first-quarter financial results this morning, announcing a 10.2% of wireless revenue growth, with an 8.6% increase in wireless service revenues. The company reports the quarter that ended on March 31 was the best-ever first-quarter with smartphone sales over 5.5 million; consolidated revenue topped $31.2 billion in the first quarter.

As far as the iPhone goes, AT&T announced 3.6 million iPhone activations in the quarter, with 23% new subscribers. The company stressed how they managed to activate 1 million more iPhones from the year-ago quarter, a remarkable result considering Apple ended AT&T’s exclusivity of the device in the US with the release of the Verizon iPhone. Following these numbers, many are already speculating the big exodus to Verizon Wireless from AT&T didn’t happen. It’s too early to tell, as we also want to wait for Apple’s Q2 results later today, but it’s worth noting that Verizon iPhone sales were rumored to be low, under Apple’s initial expectations.

iPhone activations increased nearly 1 million year over year to 3.6 million, with 23 percent of subscribers new to AT&T; iPhone subscriber churn unchanged year over year.

AT&T had another strong quarter of smartphone sales. (Smartphones are voice and data devices with an advanced operating system to better manage data and Internet access.) More than 5.5 million smartphones were sold in the first quarter, the third-highest quarter ever and an increase of more than 60 percent year over year. During the quarter, 3.6 million iPhones were activated. Approximately 65 percent of postpaid sales were smartphones.

AT&T also revealed 322,000 tablets were added in the quarter, although it’s unclear how many of them were iPad 2 3G units, older iPad 1 models, or other non-Apple devices. Statements from the press release after the break.

DALLAS–(BUSINESS WIRE)–AT&T Inc. (NYSE:T) today reported first-quarter results, highlighted by continued robust mobile broadband growth with record first-quarter smartphone sales and a two-fold year-over-year increase in branded computing subscribers.

“That’s why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies’ spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers’ network experience as volumes continue to grow.”

“We delivered another robust mobile broadband growth quarter for a very solid start to the year,” said Randall Stephenson, AT&T chairman and chief executive officer. “We posted double-digit wireless revenue growth, and we set new first-quarter records in total net adds, connected device net adds and smartphone sales. Growth in tablets and other branded computing subscribers also continues to be strong.

“Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers,” Stephenson said. “That’s why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies’ spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers’ network experience as volumes continue to grow.”

 

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