AT&T Generates 20 Percent of Apple’s iPhone Sales
This was the quarter AT&T had to swallow that big, ugly $4.2 billion charge over its failed bid for T-Mobile. But strip out one-time hits like that, and the telco’s quarter looked okay: Q4 adjusted profits of $0.42 a share, and revenue of $32.5 billion. Analysts were looking for $0.43 and $32 billion.
AT&T says it was particularly happy with smartphone sales, and says it had a record quarter for both Apple and Android handsets.
It said it activated 7.6 million iPhones during Q4, the majority of which were iPhone 4S models, which didn’t go on sale until two weeks into the quarter.
That means AT&T, which once had the worldwide exclusive on iPhones, now accounted for 20 percent of Apple’s quarterly handset sales. The majority of those went to existing customers who re-upped their contracts when they got new machines: AT&T added a total of 2.5 million wireless subs.