5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

AT & T Profits Slide, iPhone Sales Flat

By Andrew Berg | October 20, 2011

Amid increasing pressure from iPhone-toting Verizon Wireless, AT&T today reported lackluster third-quarter earnings. The carrier added just 2.7 million new iPhones and posted profits of $3.6 billion, or 61 cents a share, compared to a profit of $12.32 billion, or $2.07 a share.

Overall operating revenue was down slightly to $31.48 billion from $31.54 billion in the same quarter last year.

iPhone activations were the lowest in any quarter since the company first launched Apple’s iconic device, which could be attributed to Verizon Wireless now having the device and many customers waiting to upgrade to the recently released iPhone 4S.  

iPhone aside, AT&T sold 4.8 million smartphones overall, representing nearly two-thirds of postpaid device sales. Sales of Android devices more than doubled year-over-year, and almost half of all smartphone sales were non-iPhone devices. At the end of the quarter, 52.6 percent of AT&T’s 68.6 million postpaid subscribers had smartphones, up from 39.1 percent a year earlier and 31.1 percent two years ago.

AT&T posted a net gain in total wireless subscribers of 2.1 million, to reach 100.7 million in service. This included postpaid net adds of 319,000, prepaid net adds of 293,000, connected device net adds of 1,038,000 and reseller net adds of 473,000.

Total churn declined to 1.28 percent versus 1.32 percent in the third quarter of 2010 and 1.43 percent in the second quarter of 2011. Postpaid churn ticked up slightly to 1.15 percent, compared to 1.14 percent in the year-ago third quarter and 1.15 percent in the second quarter of 2011.

Average revenue per user (ARPU) increased 1.4 percent over the same quarter last year to $63.69. Postpaid data ARPU reached $25.14, up 14.2 percent versus the year-earlier quarter.

Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets, said in an earnings call broadcast on AT&T’s website that he expects fourth-quarter smartphone sales to be one of the company’s best ever given the usual seasonal push and new additions to the Android portfolio. AT&T released a statement separate from its earnings today, reporting that it had already sold 1 million units of the iPhone 4S.

De la Vega said things were going well on the company’s LTE rollout and the new capacity should spur growth in devices like smartphones and tablets. “What I see happening with LTE and data is a huge growth opportunity,” he said. “Smartphones now make up 52 percent of our postpaid base…but in the future, I think you’re going to see the smartphone adoption of 100 percent in the next few years.”

Shares of AT&T were down less than a point to $28.85 in early morning trading.


Filed Under: Devices

 

Next Article

← Previous Article
Next Article →

Related Articles Read More >

High-directivity couplers optimized for 225 – 750 MHz applications
Integrated into IoT devices, iSIM poised to make inroads
Triple-radio and multiprotocol MCUs add application processors
5G vectors
How RedCap fits into 5G and IoT

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: 5G Technology
This Tech Toolbox covers the basics of 5G technology plus a story about how engineers designed and built a prototype DSL router mostly from old cellphone parts. Download this first 5G/wired/wireless communications Tech Toolbox to learn more!

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World