AT&T growth strong amid iPhone 3G optimism

Correction, 7:30 a.m. PDT Wednesday: This report mischaracterized the iPhone 3G's influence on AT&T's second quarter. The phone's launch came after the quarter's close.

AT&T reported nearly a 5 percent increase in second-quarter revenues, as it headed into the launch of the iPhone 3G.

The telecommunications powerhouse, which is the exclusive U.S. carrier of Apple's popular smartphone, reported that iPhone 3G sales nearly doubled within the first 12 days after its July 11 launch, compared with the initial launch of the iPhone in 2007.

"In the days following our exclusive U.S. launch of this new device, powered by the nation's fastest 3G wireless network, customer response has been everything we had anticipated and more," Randall Stephenson, AT&T's chief executive, said in a statement. "This strengthens our wireless business, and it reinforces our positive view of the opportunities ahead for AT&T and the industry."

AT&T reported total revenues of $30.9 billion in the second quarter, up 4.7 percent. The wireless side of AT&T's business, however, grew by double digits, jumping 15.8 percent to $12 billion in the quarter, compared to the same time a year ago.

While AT&T's wireless services rose 14.8 percent, to nearly $11 billion during the quarter, its wireless-equipment sales, which include the iPhone, soared 26.5 percent, reaching $1 billion.

The company also noted that it expects to generate ongoing strong growth in its wireless-data services, as customers snap up devices such as Apple's smartphone.

Although AT&T posted nearly a 5 percent increase in total revenues, it was shy of the nearly $31.2 billion Wall Street had been expecting.

The telecommunications company's net profits reached $3.8 billion, or 63 cents a share, compared with $2.9 billion, or 47 cents a share, a year earlier. On an adjusted basis, AT&T's net income was 76 cents a share for the quarter, hitting analysts' estimates.

Shares of AT&T traded up 3.08 percent on Wednesday morning, to $32.80 a share.

[electronista]

Aren't the title and opening technically incorrect? If AT&T is like most companies, its spring quarter ended with June, or just before the iPhone 3G launch. That means the new phone didn't spur sales for the second quarter; it's going to have that effect in the third.

[electronista]

Aren't the title and opening technically incorrect? If AT&T is like most companies, its spring quarter ended with June, or just before the iPhone 3G launch. That means the new phone didn't spur sales for the second quarter; it's going to have that effect in the third.

[jamalystic]

I agree with electronista's comments that the title of the article is technically incorrect. There is no way optimism for the iphone 3G has any bearing on the 2nd quater earnings.

[Kwasiowusu]

The first 2 posters are of course correct. iPhone 3G had absolutely nothing to do with AT&T's June quarter results. Not to mention, actual iPhone sales in the June quarter was only 717,000 units(going by Apple's results). Even if every single one of those 717,000 iPhines activated on AT&T(not likely), it would still account for such a tiny sliver of AT&T's overall June quarterly revenues of a massive $30.9 Billion, as to be totally irrelevant. Yet another example of CNET's cheerleading and carrying water for Apple. CNET's motto: Don't let facts get in the way of sensationalist headlines, when it comes to shilling for Apple.

[Quemannn]

iPhone has been overhyped to the extent not justifiable. Apple and AT&T's monopolistic dealing with iPhone is hoodwinking American consumers as a whole. Are they trying to sell emotions, not technology? iPhone's sleek design is appealing but its battery problem handcuffs you.

It is time American consumers awoke to ther reality of mobile technology.

[wlxfeedpartner4]

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Test comments 22 Oct 09

[1_wlxfeedpartner1-9]

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[wlxfeedpartner4]

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